ATA President Lorenzo Amor Criticizes Government for Fueling Spain's Informal Economy Through Excessive Regulations and Taxes
ATA President Lorenzo Amor faults Spain's government for complex regulations and ‘design taxes’ that drive growth of the informal economy, especially in household employment.
- • Lorenzo Amor attributes Spain's informal economy growth to complex regulations and increased tax burdens, including 'design taxes'.
- • Post-pandemic informal work is resurging, especially in household employment where families face affordability issues.
- • Spain enacted 719 laws in 2022 alone, adding bureaucratic hurdles for small businesses and self-employed workers.
- • Amor calls for fair taxation, better financing, and improved training to support small and medium-sized enterprises (mipymes).
Key details
Lorenzo Amor, president of the Asociación de Trabajadores Autónomos (ATA) and vice president of CEOE, has strongly criticized the Spanish government's regulatory and tax policies for fostering the growth of the informal economy. Speaking at the VII Ibero-American Forum of Mipyme, Amor highlighted how the resurgence of informal work is particularly noticeable in the household employment sector, where families struggle to afford formal hiring due to increased costs and bureaucratic complications.
Amor lamented the over 15 years of growing bureaucratic obstacles that small businesses have faced, noting that in 2022 alone, Spain enacted 719 new laws and regulations—equivalent to reading the Bible 811 times in a year—complicating everyday operations for self-employed workers and small firms. He criticized the introduction of what he calls “design taxes” and pointed to new compliance measures like mandatory workday registration and electronic invoicing platforms as additional burdens.
Beyond regulatory complexity, Amor stressed the financing and tax challenges faced by small and medium enterprises (mipymes), which are crucial for employment and GDP generation. He urged reforms towards a fairer tax system, improved credit access, and better training to improve small business viability.
This resurgence of the informal economy comes after a post-pandemic decline, signaling that current government policies may be unintentionally pushing more workers and small businesses into informality. Amor expressed hope that the upcoming Ibero-American Summit will address these critical issues affecting Spain's economic landscape.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.