Elche’s GESEM consultancy bounced back after the covid period, presenting at a business-focused day that tackled developments in employment, taxation, and legal matters. The annual gathering took place at the Huerto del Cura hotel in Elche, offering a platform to share insights on recent events and future expectations for 2023. Participants discussed inflation, economic slowdown, the new bankruptcy law, and the year’s start, highlighting refinancing and restructuring efforts as central themes in the commercial and financial arenas. — GESEM
The first half of 2023 was described as challenging rather than celebratory by Laura Vicente, GESEM’s managing partner, who warned against assuming automatic growth while acknowledging potential sectoral crises and bankruptcies. The conference also examined Valencia region job trends, noting private sector momentum, especially in services, as the principal driver of any forthcoming growth. — GESEM
Raw material cost increases
The gathering pointed to a structural labor market issue in Spain, the autonomous community, and Alicante province that could translate into higher unemployment. Attendees noted that rising raw material and wage costs would compress margins, prompting a focus on maintaining business competitiveness. A commitment to defending the local business fabric and supporting a liberal economic model was emphasized as essential for sustainable growth. Vicente argued that a slowdown is not imminent, but achieving stable progress will require sustained effort from companies. — GESEM
During a conference highlight, a photo from the GESEM-organized event at Huerto del Cura in Elche accompanied a succinct reminder of the message delivered that day. — GESEM
Project finance
On the topic of project finance innovations, Entrepreneurs Law introduces new formal requirements that could limit the use of subsidies for financing. Asunción Marcos, GESEM’s audit partner, summed up the trend as showing a significant amount of public funding—origin varied, yet the process remains demanding, rigorous, and highly regulated. — GESEM
Laura Vicente, GESEM’s managing partner, reiterated that the first half of 2023 would not be a year of universal growth, but did not anticipate widespread sectoral collapse either. Conchi Martínez, a study partner, commented on how developments related to social security contributions and quotas will affect participating companies and businesspeople. — GESEM
New regulations
Labor law discussions covered changes affecting workers, including Spain’s leadership in issuing permits for digital nomads. Remote workers who relocate to Spain, whether operating independently or under an employer, may confront the standard employment relationship and the need for health insurance protections tied to visa considerations. — GESEM
Concha Martínez noted that since January 2023, there has been a shift toward self-employed contributions to Social Security based on actual income, a long-anticipated reform that is now taking shape and has real implications for participants and businesses. — GESEM
GESEM’s tax experts, Pepe Gómez and Manuel Gabaldón, outlined notable 2023 changes at both national and regional levels. While major reforms have been limited, new developments include higher personal income tax and efforts to narrow the gap between income from business and savings. The savings income levy has risen sharply over a decade. — GESEM
IRPF 2023 discount: Tax advantage for earners up to 35,200 euros
Changes to Corporate Tax also limit how business groups can offset losses, and regional taxes such as Inheritance or Legacy, along with the Beckham Tax or exile regimes, have evolved. The tax landscape continues to tilt toward adjusting the balance between earned income and savings. — GESEM
Gómez and Gavaldón emphasized that differential taxation is shrinking, with savings income increasing more than 15 percent over ten years. — GESEM
Solidarity Tax
Industry observers flagged the solidarity tax and its links to wealth taxes, particularly for residents of the Valencia Community who already pay wealth tax. The discussion considered whether the solidarity or great wealth tax model will deliver the intended outcomes for local taxpayers. — GESEM
Finally, an overall review of the tax system was provided by sEconome, including the impact of the special tax on non-reusable plastic containers that became active in January. — GESEM