It is important to note that if you receive additional income, you must always declare the source of this income to the tax authorities.

In the case of grants, in most cases, you must pay tax on them. The tax authorities consider grants and subsidies to be an asset subject to personal income tax (IRPF), unless an exception is explicitly stated in the agreement granting the subsidy.

Which grants must I declare?

There are some grants that are exempt from IRPF, those that are not taxed as capital gains or as income from work. Examples of this are disability benefits, adoption benefits, orphan's benefits, among others.

On the other hand, there are aids and subsidies that are subject to personal income tax and are classified in different ways:

Grants recognised as capital gains

They are linked to an asset and are not considered to be the result of an economic activity.

They may be:

• Aid for the acquisition or rehabilitation of the habitual residence.
  
• The Renove Plan
  
• Aid for the purchase of sustainable vehicles...

Grants classified as income from economic activities

In this case, the aid is counted as ordinary income for the year and as expenses related to the company's economic activity.

This applies to:

• Grants obtained to recover costs incurred within an eligible period.
  
• Grants for future investments related to the economic activity.
  

Grants classified as income from work.

This includes unemployment benefits, retirement benefits, widow's and widower's benefits, among others.

However, it is possible that the level of income exempt from personal income tax may affect the taxation of this aid.

When do companies and the self-employed have to declare subsidies?

When it comes to the self-employed and companies, it is important to take into account when subsidies must be declared.

• In the case of grants and lump-sum subsidies, which are paid in full on receipt, they must be declared in the year in which they are received and not at the time they are granted.

• However, in the case of grants that are paid in several instalments, the form of taxation may vary and it is important to be aware of the regulations in force.

In any case, it is advisable to seek professional advice to ensure proper compliance with tax obligations.

Are you a company or self-employed person who wants to know how to get a grant for your business, but don't have the time to go deeper and apply for one?

Don't worry, in this space we will tell you the basic knowledge you need to enter the world of grants.

What is a grant?

We start by explaining the concept of a grant and what is meant by it. Subsidies are public aid in the form of money, goods or services where the public administration covers a part of something we need for our activity.

The calls for applications for these subsidies are temporary, and can be opened on a one-off basis for specific purposes or remain open throughout the year. They may vary depending on the autonomous community where they are launched and the investment fund that subsidises them.

In general, most of these subsidies are non-refundable, which means that, once the budget for these subsidies has run out, the application period closes automatically.

Therefore, it is very important to emphasise that you must be very attentive to public notifications in order to know the deadline for registration of the subsidies and their budgetary margin, in order to calculate whether your application will be processed by the Administration.

The process

Once you have identified how the aid you are interested in is regulated, you must present all the documentation required for your application.

The requirements may vary, but the basic concepts subject to subsidies are:

• To be up to date with all obligations with the Tax Agency and Social Security.
  
• Not being identified by the Administration as a company in bankruptcy or in debt.

Even so, the process to obtain the subsidy depends on many aspects: the type of activity of your company, the type of subsidy or autonomous community...

Once the application has been submitted, you must be attentive to all possible requirements to provide additional documents that may be required. It is crucial that you pay attention to these notifications so that you can plan your calendar and avoid losing the subsidy for submitting it after the deadline.

And finally, the subsidy bonus period. This is simply the time you have to wait to receive it, although it depends a lot on the type of aid requested and the body that grants it.

As you can see, it can be a somewhat complex process that ImpulsAS can carry out for you. We have a team of experts, focused on supporting our clients.

We help you manage your entire subsidy process from start to finish, ensuring a very high percentage of success of your application and we work for you constantly looking for the best opportunities for your business.

Not surprisingly, the European Union grants subsidies and aid to its member states to support companies and the self-employed in the face of possible difficulties during times of uncertainty and crisis. In the case of Spain, in 2023, the Council of Ministers has asked Brussels for more than 90 billion euros in additional funds for the Recovery, Transformation and Resilience Plan, of which almost 8 million euros will be allocated to non-refundable aid funds. These funds will be distributed among various ministries and public bodies, for subsequent allocation to citizens.

A report by the ESADE Centre for Economic Policy (2022) reveals that approximately one third of the grants are allocated to SMEs and individuals, amounting to around 10 million. This may indicate that this sector of the Spanish economy receives no more than 20% of total EU aid. Together with a reduced budget, it can be said that small and medium-sized enterprises face considerable restrictions in accessing public funding, as the facilities for obtaining these subsidies are also limited.

As a member state, Spanish companies and the self-employed enjoy certain advantages, such as access to a variety of aid and funding programmes, but, due to a general lack of knowledge about these funds, they do not have this information at first hand.

Apart from this lack of knowledge, the main factor that hinders these processes is the classification of these funding programmes. They can be classified as direct funding (managed by the European Commission) or indirect funding (managed by administrations), and depending on their origin, the application processes vary, as well as the information required and the tools needed to carry it out. It is these differences that can often lead to confusion among non-specialists and increase the risk of errors that can invalidate applications.

Given the complexity and lack of accessibility of some of the processes for accessing grants, ImpulsAS has set out to facilitate and manage these procedures more effectively, relieving applicants of worries and improving their chances of obtaining the desired grants.

Find out everything you need to know about the zero rate for the self-employed in Andalucía

The Zero Rate for the Self-Employed is an initiative of the Government of Andalusia aimed at supporting new entrepreneurs who decide to start their own business. This measure is part of the Junta de Andalucía's commitment to promote entrepreneurship and self-employment.

The Zero Rate is a programme that subsidises 100% of the self-employed quota during the first 12 months of activity. This means that the new self-employed, if they apply for this subsidy after 1 year, will be able to obtain the totality of the paid quotas as long as they have paid the reduced rate.

To access the Zero Rate, interested parties must meet certain requirements, among them:

• They must be registered for the first time in the Special Regime for Self-Employed Workers or not have been registered in the previous two years.
  
• Beneficiaries must reside in Andalusia and carry out their activity in this autonomous region.
  
• The measure is aimed at people who are starting a new economic activity and have already paid the first 12 reduced contributions.

Advantages of the Zero Rate:

The Zero Rate is the first step in a series of measures to support entrepreneurship offered by the Junta de Andalucía.

For new entrepreneurs, this is an excellent opportunity to start their business on a more solid financial footing and with greater peace of mind.

You are unemployed and looking for a job, but the instability and the scarce job opportunities are not helping you. You decide to look for another way and you decide to become an entrepreneur, to open that business you have been thinking about for some time.

When you start your business, if you were previously registered as a jobseeker, you can benefit from many advantages that will help you get off to a good start. Thanks to the latest reforms implemented to encourage self-employment, you are eligible for grants and subsidies that can help you to obtain financing for your new business or access facilities that allow you to reduce those initial costs.

Even so, your tax obligations are going to change, and with that comes the most important question in these cases:

Will I lose my unemployment benefit if I stop working?

This is something that many people take for granted, but in reality the self-employed are entitled to unemployment benefits if they close their business, only that in this case it is called ‘cessation of activity’. This may be colloquially referred to as unemployment for the self-employed, but it does not work in exactly the same way as for employees. It is true that both are financed by the contributions that each person makes to the Social Security, but it has some peculiarities that limit the self-employed's access to it.

For the self-employed, access to these benefits has to be linked to certain causes that ‘grant’ them this right. It may sound extreme, but it requires certain requirements to be met. Since the approval of Law 32/2010, which regulates it, and the entry into force of the new system of contributions based on real income, these assumptions have been extended and there are now several scenarios in which we could apply for unemployment benefits for the self-employed:

1. Access to unemployment for ETOP reasons (economic, technical, organizational or productive causes).

In this situation, the self-employed would have access to a benefit if he/she is forced to close the business or transfer it to third parties for any of these four reasons, which he/she will have to justify upon meeting these requirements:

Having had losses during a year of more than 10% of the income obtained during that period.

To have reduced 60% of the total working day of the staff, due to a decrease of 75% in its income with respect to the two previous fiscal quarters.

To obtain a net monthly income that does not reach the minimum interprofessional salary (SMI).

The cause of the closing is due to judicial or administrative executions to collect recognized debts.

The closure derives from the issuance of a judicial or administrative foreclosure that involves at least 30% of the income of the previous fiscal year.

Being in possession of debts with private creditors and that their amount exceeds 150% of ordinary income.

2. Access to unemployment when issuing the closure of the business for reasons of force majeure.

These can recognize unforeseeable events that are completely beyond the control of the self-employed, such as a pandemic or a natural disaster.

However, thanks to the new regulations, it is no longer strictly necessary to close the business, but a temporary cessation could be carried out for a period of time, where the unemployment benefit could be accessed until the usual activity is recovered.

3. Access to unemployment after a loss of leave

For any reason that prevents you from carrying out your usual activity.  

4. Access to unemployment for personal reasons

In the case of a divorce or separation carried out judicially, this cessation of activity could be accessed if one of them or both decide not to collaborate. It could also be available to self-employed victims of gender violence.

What requirements must be met to be able to access these benefits?

In addition to the requirements previously mentioned in each situation, there are some parameters that all self-employed workers must fulfil in order to be eligible for unemployment benefits:

• Be affiliated and registered with the RETA.
• Have paid contributions for a minimum period of 12 months.
• Be in a legal situation of cessation of activity, committing to participate in training, vocational guidance and promotion of entrepreneurship activities called by the Public Employment Service (SEPE) and demonstrate active availability to reintegrate into the labour market.
• Be up to date with the payment of social security contributions.
• Comply with labour regulations if the self-employed person has employees.
• Not having reached the ordinary age for accessing the contributory retirement pension, unless the required contribution period has been reached.

In short, entrepreneurship is a valuable alternative for those facing job instability and limited employment opportunities. 

In an increasingly connected world, digitisation is not just a trend, but a necessity for businesses looking to stay competitive and relevant. The Digital Kit is the solution to boost your business, with many companies, freelancers and SMEs transforming traditional operations into efficient digital processes. This is where the Digital Kit presents itself as an essential tool, facilitating access to digitisation grants that can make all the difference to business success.

The Importance of Digitalisation

Business digitisation is about more than simply adopting technology; it is about reinventing how your business operates, interacts with its customers and optimises its resources. In this sense, the Digital Kit emerges as a key pillar, offered by the Ministry of Economic Affairs and Digital Transformation, designed to boost the digital transformation of the self-employed and SMEs in Spain.

What is the Digital Kit?

The Digital Kit is a programme that provides targeted grants to finance the adoption of advanced digital solutions. It is specially designed for small businesses, micro-enterprises and the self-employed, providing access to tools that boost online presence, digital security, operational efficiency and much more.

Digital Kit Eligibility Requirements

To be eligible for the Digital Kit, your business must meet certain criteria, such as:

• Be a small business or self-employed according to Regulation (EU) No 651/2014.
  

• Be up to date with tax and social security obligations.
  

• Comply with certain legal and financial requirements.
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Benefits of the Digital Kit

1. Secure Communications. Secure the transfer of data between your company and your employees, protecting sensitive information.

2. Business Intelligence and Analytics: Improve decision making by using your company's data effectively.

3. Social Media Management: Increase the visibility of your business on social media platforms, improving your digital marketing strategy.

4. Virtual Office: Facilitate remote collaboration through tools that promote teamwork and productivity.

5. Internet Presence: Create or improve your company's website, increasing your online visibility and accessibility.

6. E-Commerce: Expand your business into the digital world with an effective and attractive online sales platform.

7. Electronic Invoice: Streamlines the invoicing process, making it more efficient and less prone to errors.

8. Cybersecurity: Protect your business from digital threats, ensuring the security of your data and your customers' data.

9. Customer and Supplier Management: Optimise interaction with your business partners through digital solutions that enhance these relationships.

10. Process Automation: Increase operational efficiency by automating key business tasks and processes.

Preparing your business for the future

Adopting the Digital Kit not only prepares you to face today's market challenges, but also positions your company to take advantage of tomorrow's opportunities. With the support of the Ministry of Economic Affairs and Digital Transformation, you can take the digitisation of your company to new heights, ensuring its long-term growth and sustainability.

The Digital Kit represents a unique opportunity for self-employed and SMEs to advance on their path to digitalisation. By taking advantage of these grants and digital solutions, your business will not only survive in today's competitive environment, but also stand out, leading the transformation in your business.