All business owners know that the last working day of the month is Social Security’s big payday and like clockwork, a chunk of their earnings disappear from their bank accounts. Every single one of my clients has heard me say the words, “if there is ever any bill you cannot pay, make sure your Social Security contribution is not one of them”. Why do I make a point of highlighting the importance of paying Social Security contributions on time? Well, simply put, because the consequences are quite harsh if you incur a debt with the Administration.
The Spanish Supreme Court has ruled in favour of OCU (Consumer Organization) by manifesting that Banco Popular’s floor clause to be null and void. This is another battle OCU has won against one of Spain’s leading banks following up from sentences in 2013 that ruled against BBVA, Abanca and Cajamar.
If you have been following this particular issue that is rampant in Spanish banks, you would know that during the property boom, limits were placed within clauses of mortgage loans to stipulate a minimum interest rate throughout the life of the mortgage. This means that if the interest rate were to fall below the stipulated minimum or floor clause, the holder would not benefit because the bank would charge the “agreed” floor clause. I say “agreed” simply because most holders were not properly advised of the existence or the meaning of this clause in their contracts.
Right, so this issue has been talked about extensively, debated, caused arguments, tears, frustration and near bloody murder. Instead of spending my time off over Christmas and New Year’s relaxing, I have been reading and re-reading legislation, articles, documents and making further personal enquiries because for the majority, this law makes zero sense and nobody until now has really been able to explain it clearly in a way that can be properly understood (myself included!).
The big question is: Who is obligated to exchange their EU driving license for a Spanish one and why? I hope that by the end of what I hope to be the final and definitive article on this matter, we can lay it to rest for good. Please note that throughout this post, I am only referring to EU licenses as non-EU must follow a different procedure.
One thing that has stood out to me over the years when meeting with potential clients to discuss opening a new business is that very few and when I say few, I mean less than 40% of them have actually sat down and drafted a business plan in any shape or form before they attempt to set it up. Even though they may have a clear idea in their minds about what their business is, putting pen to paper can be a challenge but when they do, they may discover that even though their initial idea is good, adjustments may be required to make it a reality.
So what is the point of the business plan and why do you need one?
Over the past few articles, we have discussed the main concerns the self-employed or autónomos face regarding their precarious financial situation and to close this trilogy, we will look at how autónomos face retirement and how it works (the condensed version).
