2 million self-employed in Spain will pay less social security contributions

by Lorraine Williamson
self-employed

MADRID – The social partners have almost reached an agreement on the reform of the Special Regime for the Self-Employed (RETA). The monthly quota of nearly 2 million ‘autónomos‘ in Spain is being reduced. 

In Spain, as a self-employed person or independent professional, you pay a fixed amount per month to the Social Security Service, the Seguridad Social. This is legally laid down in the RETA. For this contribution you;

  • have health insurance without a deductible
  • are entitled to a benefit in the event of illness or incapacity for work
  • accrue a pension

2 million will pay less

Two million self-employed persons will therefore pay less contribution on the basis of the current proposal. In addition, it means that all self-employed persons with a net monthly income of more than €1,700 will pay a higher contribution than they do now. Compared to the current contribution system, this is €673 to €2,833 more on an annual basis, depending on their net income. The monthly quotas range from €230 to €590 per month in the system that is now on the table. 

cogesa expats

The scales that are now provided are as follows: 

  • Net income less than € 670 : contribution € 230 per month 
  • Net income € 670 – € 900 : contribution € 250 per month 
  • Net income € 900 – € 1,125.90: contribution € 270 per month 
  • Net income € 1,125.90 – € 1,300 – contribution € 290 per month 
  • Net income € 1,300 – € 1,700 – contribution € 294 per month 
  • Net income € 1,700 – € 1,850 – contribution € 350 per month 
  • Net income € 1,850 – € 2,030 – contribution € 370 per month 
  • Net income € 2,030 – € 2,330 – contribution € 390 per month 
  • Net income € 2,330 – € 2,760 – contribution € 415 per month 
  • Net income € 3,190 – € 3,620 – contribution € 465 per month 
  • Net income € 3,620 – € 4,050 – contribution € 490 per month 
  • Net income € 4,050 – € 6,000 – contribution € 530 per month 
  • Net income more than € 6,000 – contribution € 590 per month 

For self-employed with an income lower than €670 per month and self-employed persons who earn between €670 and €900 per month, a discount applies compared to the current system of €15 and €10 per month respectively. 

The parties agree that the self-employed with the highest incomes can get used to their new higher contributions in a progressive way. However, lower-income earners should be able to benefit immediately from their reduced monthly contribution. 

More flexibility 

The gradual implementation of the reform is also a requirement from Brussels. In order to speed up the procedures for a negotiation that is concluded at the last minute, whether unanimously or not, the Ministry of Inclusion and Social Security has approved a royal decree to allow self-employed workers to contribute according to their net income . In addition, the Royal Decree improves the possibilities for self-employed workers to provide information about the expected return in the calendar year in which the registration takes place. Furthermore, the future system will be more flexible than the current one. It allows employees to change their contributions up to 6 times a year based on their earnings, instead of the current 4 times a year.  

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