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FREELANCING

UPDATE: How small businesses in Spain can get €12,000 for digital improvements

Spain's government recently unveiled how autónomos and small companies can apply for up to €12,000 in funds to improve the digital side of their businesses, a scheme which now also includes companies with 3 to 9 employees. Here's everything you need to know.

Published: 15 March 2022 16:30 CET
Updated: 23 June 2022 08:55 CEST
UPDATE: How small businesses in Spain can get €12,000 for digital improvements
If you're self-employed in Austria and have a trade licence, you'll have to advise the authorities if you're giving it up or keeping it dormant. Photo: photosforyou/Pixabay

The Spanish government first announced its digital improvement programme back in November 2021, but it wasn’t until March 15th 2022 that the specific details of the scheme were revealed. 

The ‘Kit Digital’ programme, as it has been called, will run until 2023 with an initial investment of €500 million.

Initially, it was only available to self-employed workers and companies with between 10 and 49 employees, but as of June 22nd 2022, it is now open for those with between 3 and 9 employees as well. 

Autónomos (self-employed workers) and small business owners in Spain have had a tough time during the pandemic, whilst also having to pay some of the highest social security contributions in Europe.

The Spanish government’s new ‘digital kit’ is aimed at helping many of these small business owners out by covering the cost of digital improvements, from their websites to social media management and marketing campaigns.. 

READ ALSO – Self-employed in Spain: What you should know about being ‘autónomo’

How will the ‘Kit Digital’ work?

The Digital Kit funds will be distributed in the form of vouchers of up to €12,000 for small companies and autónomos who want to undertake a digital transformation of their businesses.

These vouchers will then be passed on to ‘digital agents’ – a series of companies authorised by the government to develop these projects, which they call “digital solutions”. That means that self-employed workers and small businesses will not receive the funds directly nor be able to choose which company to hire for the digital improvements.

Instead, it will be the digital agents who receive the final payment and will take care of the paperwork and digital improvements. Currently, there are already more than 3,000 companies authorised as digital agents, although the list is expected to continue to grow in the next few weeks.

Please note that €12,000 in funds is the highest amount and will only be available to businesses with the need for a complete digital overhaul. 

What digital improvements are available?

The digital transformation projects which can be financed with the Digital Kit fall into several different categories, which the government defines as:

  • The creation of web pages and visibility of the company on the internet (Google rankings, SEO)
  • Electronic commerce
  • Social media management
  • The improvement and digitisation of customer management systems
  • Business intelligence and analytics
  • Virtual office tools and services
  • Digitisation and automation of business processes
  • Electronic billing
  • Secure communications
  • Cybersecurity

Who will be eligible for the Digital Kits?

In order to be eligible for the Digital Kits, you must:

  • Be a small business, micro business or autónomo (A small business is considered to be one that has more than 10 employees and no more than 50 and a micro business has less than 10 employees whose annual turnover does not exceed €2 million).
  • Meet the financial and cash limits that define the categories of each type of company
  • Not be considered a company in crisis
  • Be up to date with tax and social security payments
  • Not be subject to an outstanding recovery order from the European Commission

When can I apply?

The Asociación de Autónomos (ATA) has confirmed to The Local that small businesses with between 10 and 49 employees are able to apply for the Digital Kits any time up until 11am on September 14th 2022. Meanwhile, those with between 3 and 9 employees are able to apply from June 22nd 2022. 

If you want to be in with a chance of receiving one, you should apply as soon as possible, as the aid will be granted on a first-come-first-served basis, depending on your needs and funds are already running out. 

ATA also confirmed that micro-businesses with just two employees can apply from September. 

How do I apply?

In order to apply, you must register at www.acelerapyme.es and complete the self-diagnosis test. This will allow the government to know what level of digitisation your company has already and what you need. 

Remember, those businesses that have already registered will be given priority. 

You can also request ATA to help you apply for the kits by filling out the form found at https://autonomoskitdigital.es/.

You can then check the catalogue of digital solutions, where you can choose one or several of those offered by digital agents that best suit the needs of your business.

Next, you will request the Digital Kit aid at the Red.es electronic office (sede.red.gob.es) and complete the associated form.

Once your request for a Digital Kit has been granted, you will be able to access the catalogue of digital agents and decide which one you want to work with, before signing an agreement to start your project.

According to the latest stats available, there are approximately 2.9 million SMEs in Spain (around 70 percent in the services sector), and around 3 million autónomos. 

READ ALSO: How to set up an online shop in Spain

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For members

VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

Published: 30 April 2024 14:20 CEST
EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur Visa – Visado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

Unfortunately, this exchange is not possible. The main issue is that you’re not allowed to work while on a NLV and the requisites of the DNV are that you must have worked for the company that hired you for a remote role (or your clients if you’re self-employed) for a minimum of three months before you apply.

If this is the case then you’ll be admitting that you were working while on your NLV, which could get you into trouble. This means will have violated the terms of your visa and will be highly unlikely to be granted another one. You may also face penalties and fines, depending on your circumstances.

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