HEALTHPLAN MAGAZINE

Imagine this scenario: You find yourself employed in Spain, but the desire to supplement your income in the face of escalating living costs prompts you to explore your entrepreneurial inclinations on the side. The question arises: Can you juggle a formal employment contract while also pursuing self-employment endeavours?

Let's explore different scenarios to delve deeper into this matter. Imagine you are employed by a Spanish company and desire to offer consulting services in your field during evenings and weekends for supplementary income. Alternatively, you could have an independent clientele and suddenly land a full-time role at a different firm. In this case, can you maintain your existing client base while fulfilling your new employment obligations?

In essence, the answer to "can you be employed and self-employed," is yes. However, the process isn't as simple as deciding to go ahead with it; you need to formally register as an "autónomo" (self-employed individual) while concurrently upholding your employee status under a contract.

Article 28 of the Entrepreneur's Law of 2013 stipulates that an individual who straddles both self-employment and salaried roles must enrol and contribute to two distinct systems. These systems comprise the Special Scheme for Self-Employed Workers and the General Social Security Scheme.

Consequently, your employer would handle your social security contributions for your employed position, while you'd be responsible for additional social security payments related to your self-employed work. This essentially translates to double social security contributions.

To ensure compliance with legal norms, you must join the "Régimen Especial de Trabajadores Autónomos" (RETA), specifying the nature of your intended self-employed activities. It's crucial to note that diverse lines of work or professions are classified differently in Spain. Once you've aligned yourself with a particular category, you are restricted to freelance work within that designated scope. If you aspire to undertake varied types of side work, you'll have to separately register for each distinct category, introducing a layer of complexity.

The realm of social security fees requires consideration. Should you aim to earn supplemental income, perhaps to offset your rent, the decision to pursue such work while becoming an autónomo merits careful contemplation. This stems from the substantial social security fees requisite for self-employed individuals, in addition to the income tax levied on your earnings.

Typically, the "autónomos" bracket commences at 60 euros per month (dubbed the "tarifa plana") during the inaugural year, progressively escalating until reaching between 200 and an eye-watering 590 euros per month. 

However, if you are simultaneously employed, certain deductions are at your disposal, unavailable to exclusive self-employed individuals. A reduction of up to 50 percent on the minimum contribution basis for the initial 18 months and up to 75 percent for the subsequent 18 months becomes attainable.

It is important to note that these deductions aren't compatible with the tarifa plana which entails the 60 euro monthly rate for the first year, subsequently escalating. Consequently, if, for instance, you're engaged in part-time consultant services, the feasibility of covering social security fees hinges on your earnings and the deductions you qualify for, transcending the realm of mere pocket money.

Balancing your self-employment pursuits with your contractual employment warrants personal assessment, taking into account the level of income you will have to earn.