SINGLE PAYMENT SUBSIDY FOR THE SELF-EMPLOYED, CAPITALISE YOUR UNEMPLOYMENT BENEFIT TO FINANCE YOUR NEW BUSINESS IN SPAIN

Accelerate your business with these expert tips from the experts who tell us about "Subsidising the single payment for the self-employed, capitalise your unemployment benefit to finance your new business in Spain". Take a look and discover this TIP!

The lump-sum subsidy, also known as the capitalisation of unemployment benefits, is a measure offered by some countries, such as Spain, to encourage entrepreneurship and self-employment among people who are receiving or are entitled to receive contributory unemployment benefits.

I will focus on the case of Spain, although the concept may vary from country to country:

Single Payment subsidy in Spain:

• WHAT IS IT?

This is a mechanism that allows unemployment benefit recipients to receive in advance and in a single payment the amount of the benefit that remains outstanding, in order to invest it in a business project.

• WHAT CAN IT BE USED FOR?

  • Starting an activity as a self-employed person.
  • Making a contribution to the share capital of a new company or an existing company, provided that a professional activity is to be carried out there.
  • Invest in a cooperative or worker-owned company.

• GENERAL REQUIREMENTS:

  • Be unemployed and entitled to contributory unemployment benefit.
  • Not having capitalised the benefit in the previous 4 years.
  • Commit to maintain the activity and/or participation in the company for at least 5 years.

This option is aimed at those who are receiving contributory unemployment benefit.

• PURPOSE. YOU CAN USE THE CAPITALISED AMOUNT FOR:

  • Starting a self-employed activity.
  • Become a worker-member in existing or newly created cooperatives or worker-owned companies.
  • Make a contribution to the share capital of a newly created business entity or one created within the previous 12 months.

• AMOUNT

  • People under the age of 30 (or women under the age of 35) can capitalise up to 100% of their benefit.
  • For the rest, capitalisation of up to 60% of the benefit is generally allowed, although this percentage may vary according to the Autonomous Community and the circumstances of the claimant.

• TAX IMPLICATIONS

Although receiving the lump-sum payment is a tax-exempt operation, it should be noted that if the business is not maintained for at least 5 years, the amount of the benefit received will have to be returned and could have tax implications.

• PROCEDURE

  • Apply for it at the offices of the State Public Employment Service (SEPE) or through its website.
  • Present an investment project and activity to be developed.
  • Wait for resolution.

• IMPORTANT

If the one-off payment is received and the business project is not carried out or the obligations are not fulfilled, the amount received must be repaid.

EXCEPTIONS

You will not be able to capitalise your benefit if you decide to work as an economically dependent self-employed person with a company with which you have had a previous contractual relationship or which belongs to the same business group.

• Compatibility with self-employment: if you are already receiving benefit and you decide to become self-employed, you will not lose your benefit. You can continue to receive this benefit for a maximum of 270 days, or the remaining time, provided that you apply for compatibility within the first 15 days of starting your activity. But remember, if you work full or part-time for others, this compatibility will be interrupted.

STEPS TO FOLLOW:

• Information and advice: before making a decision, go to the Servicio Público de Empleo Estatal (SEPE) to receive all the information and advice about your situation and the options available to you.
• Application: you must submit the application for capitalisation to the SEPE, where you will be given the necessary documentation and the deadlines to follow.
• Project development: Once you have the capital, it's time to get your business off the ground. Consider a business plan and expert advice to maximise your chances of success.

If you are unemployed and have a business idea, the capitalisation of your benefit may be the boost you need. It is an opportunity to reinvent yourself and embark on your path in the business world. Take advantage of this possibility and turn your dreams into reality!