The Government of the Canary Islands last week approved the allocation of part of budget surplus from the Canary Islands Autonomous Community to be used to finance a two-year extension of the Auntonomo flat rate contribution of 50 euros for the newly self-employed on the Islands. Specifically, six million euros will be allocated to this initiative.

Thanks to this measure, the newly self-employed on the Canary Islands will be able to contribute just 50 euros a month for their second year of operation, which until now had meant that any self-employed person would have to pay a minimum of 283 euros per month after their first year of operation, in minimum social security contributions.

The measure will be also be retroactive from January 1, 2019. So at the time when the call is resolved the Government of the Canary Islands will compensate in advance each of the new professionals up to the difference between the €50 & €283 paid over previous months. The call is to be managed by the Canary Islands Employment Service.

Spokesperson and Minister for Finance of the Canary Islands Government, Rosa Dávila, explained during a press conference after last week’s Council session that “while registrations of self-employed at national level had reduced for the first time in five years during the first quarter of 2019, the Canary Islands maintain a positive trend. We must remember that at the end of 2018, the islands led the national ranking with an increase of 4.3%.”

“This data shows that the increase in self-employment is an option increasingly chosen by Canary Islanders and residents of the Canary Islands, so any measure we can put in place to support their activity is the least we can do” she said.