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Follow on Google News |  Pressures on Spanish Small Businesses Set to Ease, Says Advoco PartnerAfter a dreadful year for many British-owned small businesses in Spain, 2010 promises at least some improvement as the main pressures of the recession ease, according to Costa del Sol-based accountant James Baker.
By: James Baker - the fall in value of the pound against the Euro which has reduced the spending power of many customers, whether visitors from the UK or those that live on a fixed income from Britain - the over-reliance on the property sector which has crashed spectacularly in Spain. Many small businesses have been caught in the fallout even if they are not directly affected in the same way as builders and estate agents - problems in the mortgage market. Rising numbers of defaults and repossessions have seen many Brits forced to pack up and head home taking their custom with them. Those that remain are often struggling under the burden of commitments they took on during the boom but can no longer easily afford. - Many Brits here are not “in the system” and have earned their living informally meaning that now they are not entitled to benefits or other state support to cushion the blow of unemployment. Speaking from his office near Estepona, the UK-trained chartered accountant pointed to tentative signs of a partial improvement in the outlook for 2010. “I don’t want to be seen as a cheerleader for a recovery that will more than likely be weak and constrained” - demand for property conveyancing services increased suggesting that transaction levels were rising in the sector even if prices were not See blogpost: http://spanishinsight.blogspot.com/ - new business proposals received in areas like business hospitality and internet retailing - new enquiries from UK residents looking to become tax resident in Spain suggesting that the flow of people between the two countries was tipping back towards Spain “I don’t have a crystal ball but I am quietly confident that 2010 will be the year that sees a partial recovery for the British business community in Spain. I am not wildly optimistic about a rapid rebound in property prices or the wider Spanish economy [unemployment is nearly 4 million], but some indicators can hardly fail to look better next year. Mortgage rates reset once a year in Spain and this meant until recently many people were suffering with high rates hanging over from 2008. This will no longer be the case. Also some of the other effects of the property crash like lower rents and discounted property prices will start to have a positive impact as more people are encouraged to move and settle here.” Asked about clouds on the horizon, Mr Baker concluded saying “the missing piece in the jigsaw is a partial recovery in sterling and I am not holding my breath waiting for that. Also we continue to receive a lot of calls from people struggling with their mortgages so there is clearly still plenty of pain being felt out there.” To assist businesses still struggling to attract enough custom, Advoco suggests a review of marketing strategy and has published a guide accordingly: http://www.advoco.es/ About Advoco: Partners Manuel Garcia Pedregosa is a qualified lawyer and accountant and member of the Granada Colegio de Abogados. He has 23 years experience in private practice specialising in small / medium size businesses and property law. James Baker is a Chartered Accountant who qualified in London in 1990. He moved to Spain in 2002 and is now registered as an accountant in Spain. He is the primary contact for tax and business enquiries. For further information see Advoco's small business page http://www.advoco.es/ # # # Legal, accounting, tax and general assistance for English-speakers in Malaga, Granada and Cordoba. Spanish expertise and British customer service in ten locations throughout Southern Spain. End
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