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Government Policies

Feijóo Proposes VAT Relief for Self-Employed

Last updated: October 19, 2025 2:20 am
Published: 4 months ago
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The leader of Spain’s conservative Partido Popular (PP), Alberto Núñez Feijóo, announced a new plan for the country’s autónomos (self-employed workers) this weekend, pledging to exempt those earning under €85,000 per year from paying VAT if his party wins the next general election.

The announcement comes amid growing discontent over rising social security contributions for the self-employed. Many freelancers and small business owners claim the increased fees, confirmed this week by the Socialist government, place a disproportionate burden on those who have already struggled to recover from the pandemic. Spain’s self-employed population, numbering more than 3.3 million, contributes to the economy both as producers and employers. Rising fees, combined with high operational costs, have led many to warn that a growing number of freelancers are considering abandoning their businesses or working informally, a trend Feijóo described as “a threat to Spain’s productive backbone.”

Beyond the VAT exemption, Feijóo outlined a comprehensive plan aimed at easing financial and bureaucratic pressure on self-employed workers:

Feijóo framed these policies as “a recognition of those who sustain Spain’s economy through effort and enterprise, not through subsidies or privileges.” Analysts note that such measures could resonate strongly with Spain’s self-employed demographic, who have increasingly voiced dissatisfaction with government policies.

At a rally in Galicia, Feijóo also targeted alleged government waste, claiming that while the self-employed are forced to pay more, public funds are being misused on what he described as “chistorras (a type of Spanish sausage) and prostitutes.”

This statement was not simply rhetorical. It referenced allegations of misuse of public funds involving former PSOE minister José Luis Ábalos. Feijóo said such cases demonstrate “systematic corruption” within the PSOE, arguing:

“It is outrageous that, while small business owners are being squeezed by rising quotas, public money is being used to finance luxuries and personal indulgences.”

Investigations by Spain’s Civil Guard (UCO) reportedly detected over €95,000 in unjustified expenses and more than €60,000 in cash deposits linked to Ábalos and his ex-partner between 2018 and 2022. The funds allegedly included employment in public companies with limited evidence of actual work and numerous trips financed by public money.

However, no court has yet confirmed criminal wrongdoing, and the PSOE maintains that all payments were declared and justified. Media reports indicate that these allegations, while serious, remain political claims rather than proven fact, highlighting why Feijóo invoked them to criticise government priorities.

Feijóo’s comments have reignited Spain’s partisan divide. Socialist officials criticised the PP leader, accusing him of using “vulgar populism” and exploiting ongoing investigations for political gain. PSOE spokespeople stressed that all expenses were legally declared and justified, describing the remarks as “a distraction from real economic challenges.”

Meanwhile, Vox, Spain’s far-right party, offered cautious support for Feijóo’s proposals but argued that more radical tax relief is needed for the self-employed, particularly in rural regions. Analysts suggest that the VAT exemption and the broader plan could be instrumental in consolidating PP support among small business owners, freelancers, and rural voters ahead of potential snap elections in 2026.

Among many autónomos, the message resonated. One small business owner in Madrid mentions:

“We work hard, we pay taxes, and we see politicians living off us. At least Feijóo is talking about helping us instead of taking more.”

Spain’s self-employed population is widely seen as a politically influential demographic, often shaping local election outcomes and acting as a bellwether for national sentiment. By combining concrete proposals with a sharp critique of government spending, Feijóo aims to position the PP as the party that champions small business interests while drawing a stark contrast with the PSOE’s perceived mismanagement.

Feijóo’s colourful language, while controversial, has ensured one thing: the debate over taxation, government accountability, and public spending remains front and centre in Spanish political discourse. How voters respond to both his proposals and his rhetoric may have significant implications for the next general election.

Read more on Euro Weekly News Spain

This news is powered by Euro Weekly News Spain Euro Weekly News Spain

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