Self-employed workers' declared incomes raise by first time since 2007

Self-employed workers’ declared incomes raise by first time since 2007

The tax declaration of self-employed workers’ earnings from economic activities uploads by first time since the beginning of the crisis.

The benefits that self-employed workers have declared to the Spanish Tax Agency in their income tax declaration (IRPF) have grown up by first time since the year 2007. The declared net profit by economic activities raises, once applied their correspondent withholdings, up to €9.951, an increase of 6.04%, following the Spanish economic journal Cinco Días.

This figures, published by the Spanish Tax Agency, are regarded to the tax year 2014 and declared in 2015. Henceforth this increasing represents up to 6.04% more that declared net profits corresponding to the year 2013 which they were up to €9.011.

Taxpayers bound to self-employed workers’ income tax system (so-called in Spanish “trabajadores autónomos”) have especially suffered from the economic crisis’ effects. In such a way, between years 2007 and 2013 their declared profits were progressively lowering down.

Hardly hit by the crisis, the professionals and self-employed workers’ incomes sank up to 33.3% during those six years. Following Spanish Tax Agency’s figures, 1.6 million taxpayers are taking part of this kind of workers tax system.

If self-employed workers’ declared net profits from their economic activities are compared to those of salaried employee’s earned incomes, this latter’s declared earnings (once deductions are applied) represented €18.873, 8.922 euros more but that they are corresponded to a salaried employees’ income increase of just 0.2% with regard to the period 2007-2013.

Even though this trend change is reflecting a Spain’s economic situation’s improvement (although slight), from our point of view, other factors that might explain this self-employed workers’ declared incomes’ increasing could also be due to the inspection activities’ growing trend that the Spanish Tax Agency is carrying out because, in their 2016 Tax Control Plan, is stated that “professional activities will keep being subject to special monitoring”.

If you have any legal doubt about your investments, savings or assets, please do not hesitate to contact us for a complimentary review at clerk@delcantochambers.com

Del Canto Chambers’ Newsroom

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