Lorraine Williamson
Across Spain, a wave of anxiety is sweeping through the self-employed community. Freelancers, hairdressers, and small traders fear the government’s latest proposal to raise autónomo social security contributions from 2026 will be the final straw. Many say the increases could make self-employment financially impossible — and deter new entrepreneurs from even trying.
The reform, part of Spain’s long-running overhaul of the social security system, aims to link contributions more closely to real income. But for the country’s 3.3 million self-employed, it feels less like fairness and more like punishment.
“We just want to work — not drown in payments”
For Gloria Llopis, a freelance communications consultant from Madrid, the idea of another rise feels unbearable.
“I already pay €282 a month,” she says. “That’s terrifyingly high. I’m even on LinkedIn looking for extra work just to keep afloat. It feels like we’re collecting taxes for the state.”
Llopis launched her business in 2022 and initially benefited from Spain’s tarifa plana – the discounted €80 monthly rate for new autónomos. Under the new proposal, even that rate would rise. “We just want to work and contribute,” she adds. “But this makes it almost impossible to stay self-employed.”
What the 2026 proposal means
The Ministry of Social Security, led by Elma Saiz, plans to raise monthly contributions by between €11 and €206, depending on income. Someone earning just €670 a month would see their bill jump to €217.37, while the top earners could pay nearly €800.
Further hikes are pencilled in for 2027 and 2028, with some monthly payments potentially topping €1,200. Officials argue the move will make the system more sustainable and equitable, ensuring that higher earners contribute more towards pensions and welfare.
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A burden too heavy for many to bear
For many small business owners, these numbers aren’t abstract — they’re personal. Each increase chips away at already thin margins, especially as inflation, rent, and energy prices remain stubbornly high.
Hairdresser Miguel, who has run a salon in Madrid for over a decade, takes a pragmatic view. “I don’t like it,” he admits. “But the last government was worse — they raised our contribution twice and put VAT on haircuts up to 21%. I won’t close over €11 more a month. But if someone has to, maybe their business wasn’t viable to begin with.”
His words reflect a common resignation — not acceptance, but fatigue. After years of shifting tax rules, many autónomos say they no longer trust that stability will ever return.
The numbers behind the reform
According to calculations by ATA, Spain’s largest federation of self-employed workers, the new contribution model would bring in €5.7 billion in additional revenue between 2026 and 2028 — nearly five times more than the first phase introduced in 2023.
The government says that money is vital to safeguarding pensions and unemployment protection for freelancers. However, critics argue that the state is using small business owners to plug budget gaps instead of tackling inefficiency elsewhere.
ATA’s president has called the proposal a “financial blow” that breaks the 2022 agreement made with social partners, warning that low-income autónomos will be hardest hit. Another association, UPTA, has urged “clarity and gradual implementation” to avoid driving people out of self-employment altogether.
Political tensions and uncertain future
Even within Spain’s government, the plan has sparked dissent. Deputy Prime Minister Yolanda Díaz (Sumar) has publicly criticised the measure, saying it “unfairly penalises low incomes.” Coalition partner ERC, and opposition parties including PP, Vox, and Coalición Canaria, have also voiced opposition.
Without parliamentary approval, the current contribution levels will remain in place. Yet for many autónomos, that offers little comfort — negotiations could drag on for months, prolonging uncertainty at a time when confidence is already fragile.
Spain’s self-employed crossroads
Spain’s self-employment sector — once a proud symbol of independence and innovation — is increasingly overshadowed by bureaucracy and high fixed costs. According to EU data, the country’s entrepreneurial rate has already fallen compared with pre-pandemic levels.
As the debate continues, many fear the message to aspiring freelancers is clear: in Spain, working for yourself is becoming a luxury few can afford.
Sources: El País, Huffington Post, RTVE