Drago Canarias Unveils Comprehensive Support Plan for Self-Employed Workers

On November 19, Drago Canarias unveiled a robust set of initiatives designed to improve the working conditions and overall support for self-employed individuals in the Canary Islands. This announcement marks a significant step toward addressing the unique challenges faced by this vital segment of the economy.

Prioritizing the Needs of Self-Employed Workers

The presentation took place in Gran Canaria, featuring key figures such as Luis de la Barrera, the Public Policy Manager, and Carmen Peña, the National Spokesperson. De la Barrera underscored the necessity of prioritizing self-employed workers in the proposed initiatives, emphasizing their crucial role in the local economy.

Among the five proposed measures, the most urgent is the call for progressive contributions to Social Security, which would be linked to the income tax system. De la Barrera articulated a compelling argument: “The more you earn, the more you should contribute.” He highlighted the inequity faced by lower-income self-employed individuals, who currently shoulder a disproportionate burden in sustaining the Social Security system.

Another pivotal proposal is the suggestion to allow taxes to be paid only after invoices are issued. This change aims to alleviate the financial strain on self-employed individuals who often grapple with unpaid bills. De la Barrera confidently stated that the government possesses adequate resources to implement this adjustment, which could significantly ease cash flow issues for many small business owners.

Safeguarding Local Enterprises Against Larger Competitors

Drago Canarias is also advocating for protective measures to shield local businesses from the competitive pressures exerted by larger franchises and multinational corporations. The organization proposes increasing property taxes and other levies on these larger entities while simultaneously offering tax incentives for self-employed workers. De la Barrera remarked, “Individuals and small businesses are being pushed out of key commercial areas because they cannot compete with the costs and rental prices of large firms.” This sentiment reflects a growing concern about the sustainability of local economies in the face of corporate dominance.

In addition to these financial measures, the organization is pushing for the simplification of bureaucratic processes that often hinder the operations of self-employed individuals. This includes extending the digital single window service across the archipelago and incorporating mobile assistance in rural areas. Peña emphasized the importance of reducing bureaucratic burdens, allowing self-employed individuals to focus on their core business activities rather than getting bogged down by red tape.

Advocating for Tax Benefit Reforms

Lastly, Drago Canarias is advocating for significant reforms to the Special Economic Regime (REF), the Canary Islands Special Zone (ZEC), and the Canary Islands Investment Reserve (RIC). These reforms aim to better include self-employed individuals and small businesses in the benefits currently skewed toward larger corporations. Peña pointed out that while discussions about tax benefits are ongoing in the Canary Islands, these advantages often disproportionately favor large companies and multinationals, leaving smaller enterprises at a disadvantage.

The proposed reforms seek to create a more equitable tax landscape, ensuring that self-employed individuals and small businesses can access the same opportunities for growth and support as their larger counterparts. This shift could foster a more balanced economic environment, promoting entrepreneurship and innovation across the islands.

Key points

• Drago Canarias presented five measures to support 145,000 self-employed workers in the Canary Islands.
• Progressive contributions to Social Security are proposed to align with income levels.
• Taxes should be paid after invoices are issued to ease financial burdens.
• Increased property taxes on large firms are suggested to protect local businesses.
• Simplification of bureaucratic processes is a key focus to help self-employed individuals.
• Reforms to existing tax benefits are needed to better serve small businesses and self-employed individuals.