The recent Law 14/2013, of September 27, on support for entrepreneurs and their internationalization, creates a new figure, the Limited Liability Entrepreneur, thanks to which individuals can prevent the liability arising from their business debts from affecting their habitual residence under certain conditions.
The business owner/self-employed individual is free to establish themselves as a Limited Liability Entrepreneur, but if they do so, they must comply with the obligations established in the new legal framework.
The Limited Liability Entrepreneur may ensure that their family home, of which they are the owner, is not liable for the results of the business or professional activity, provided that its value does not exceed 300,000 euros. In the case of homes located in populations of more than 1,000,000 inhabitants, a coefficient of 1.5 will be applied to the value.
In no case can the business owner/self-employed individual who has acted with fraud or serious negligence in fulfilling their obligations to third parties benefit from this, provided that it is proven by a final judgment or in a bankruptcy declared guilty.
The Entrepreneur must register with the Mercantile Registry corresponding to their domicile, indicating the real estate, whether owned or common, that they intend not to be bound by the consequences of the business or professional activity.
If the business does not go well, at least they won't leave us on the street.
