Bureaucracy and Tax Pressure Suffocate Micro-Enterprises in Canarias

The president of a prominent business organization criticizes regulatory complexity and high labor costs as hindrances to economic development in the islands.

Generic image of documents and a calculator, symbolizing bureaucracy and tax burden.
IA

Generic image of documents and a calculator, symbolizing bureaucracy and tax burden.

The top representative of SMEs in Spain has highlighted excessive bureaucracy and high tax pressure as the main obstacles faced by micro-enterprises and self-employed individuals in Canarias, preventing economic growth from reaching all sectors.

The business representative has expressed concern about the current economic duality, where large and medium-sized companies thrive, while micro-enterprises struggle to survive. This situation, according to the expert, contributes to the disappearance of the middle class and an increase in the population in disadvantaged situations, despite overall economic growth. The high tax burden on labor in Spain, supported by OECD reports, widens this gap, making labor costs for companies significantly higher than the net salary received by workers.

"It is not possible to have to overcome 3,000 regulations to open a business."

the organization's president
Regulatory complexity is another critical factor. The representative emphasized that current bureaucracy is "terrible" and disproportionately affects small businesses that lack specialized administrative departments. Obligations such as time registration or the Verifactu system add overheads that, for self-employed individuals and micro-enterprises, can determine their continuity. It is estimated that a small business in a municipality in Fuerteventura, for example, must comply with over 3,000 regulations, which explains the closure of many establishments.
Regarding productivity in Canarias, the expert pointed out that fiscal costs are one of the main burdens. When more than 40% of the salary goes to taxes, the cost per hour reduces productivity, as the company pays a lot, but the worker receives very little. Furthermore, absenteeism is a "real drama" nationwide, costing 33 billion euros in 2025, half of which is borne by companies, which in turn leads to price increases for consumers. The absenteeism rate in Spain almost doubles the European Union average, despite the high quality and life expectancy.

"Absenteeism is a real drama for everyone. In 2025, it cost us 33 billion euros."

the organization's president
Ineffective health system management, with long waiting lists and a shortage of mental health professionals, contributes to the absenteeism problem. Recent reforms, far from improving the situation, have worsened it. The representative stressed the need to address absenteeism as a state problem and seek solutions for the country's second-highest expenditure, only surpassed by pensions.
Finally, the representative highlighted the potential of Canarias beyond tourism, thanks to its geostrategic position as a connection point between Europe, Africa, and Latin America. The islands' tax advantages are attracting technology and audiovisual companies, demonstrating the "magnificent work" being done to make Canarias an international benchmark in these sectors.