A report has just been leaked to the press that the black economy in Spain now makes up 23.3% of all transactions. This means that a quarter of the economy in Spain doesn’t show up on the official figures for the size of the GDP for example. The figure is 5% higher than a decade ago and it is getting higher due to the famous “Crisis”.
In the last post I talked about the disincentives for anyone wanting to start up a business in Spain. Today I will tell you about the results of that.
As businesses in Spain have such heavy upfront costs many sole trasders will start in the Black economy. Their first months will be cash in hand until they are earning enough for two things.