Healthplan Spain


Chalk board self employed with calculator Spain Proposes Social Security Contribution Reforms For Self Employed Spain News

Spain is considering reforms to the social security contribution system paid by the self-employed.

The social security contributions paid by Spain’s self-employed workers (Autonomo) could be changing with the possible introduction of a multi-tiered system which would see more than one million workers paying more each month.

The move would see self-employed workers paying a monthly amount of contributions based on their anticipated level of income. This is opposed to the current system where a flat fee is paid regardless of how much they earn.

Under the new rules, there would be a total of 13 contribution brackets which would range from a monthly payment of €90 for those earning less than €3,000 per year to an eye-watering €1,220 per month for those on €48,841 or more.

Under the current system, even the lowest earners have to pay a minimum fixed amount of around €275 per month.

The payment of social security contributions based on a fixed monthly amount regardless of income has been a longstanding and contentious issue for the self-employed with freelancer associations and unions have been pushing for a fairer system.

Spain’s Minister for Social Security José Luis Escrivá made the proposals to the country’s main labour unions UGT and CCOO along with employer groups CEOE and Cepyme in a 14-page document.

The new system would see self-employed workers choosing their contribution base according to their estimated level of income. This amount could then be adjusted up to six times a year depending on how well their business was performing.

At the end of the year, the contributor could either request a refund if they had paid too much or be asked to make an additional payment to make up any shortfall.

The new system could be introduced as early as next year, although it is not expected to be fully up and running until 2023 with a transition period of nine years.

From 2023 until 2031, the following yearly income thresholds and quotas are being proposed.

  • 200 euros per month for the self-employed who have an income of 3,000 euros or less.
  • 215 euros for those with income ranging between 3,000 euros and 6,000 euros.
  • 230 euros for those with an income of more than 6,000 euros, but less than 9,000 euros.
  • 245 euros for those with an income of between 9,000 and 12,600 euros.
  • 260 euros for 12,600 to 17,000 euros of annual income.
  • 275 euros for those from 17,000 euros to 22,000 euros.
  • 290 euros for those from 22,000 to 27,000 euros.
  • 305 euros for those from 27,000 to 32,000 euros.
  • 320 euros for those from 32,000 to 37,000 euros.
  • 340 euros for those from 37,000 to 42,000 euros.
  • 360 euros for those from 42,000 to 47,000 euros.
  • 380 euros for those from 47,000 to 48,841 euros.
  • 400 euros if there are yields greater than 48,841 euros per year.

Once the 9-year reform period ends, the following thresholds are being proposed from 2032.

  • 90 euros per month for those who earn less than 3,000 euros.
  • 120 euros for those who enter 3,000 to 6,000 euros net per year.
  • 185 euros for the self-employed with returns between 6,000 and 9,000 euros.
  • 235 euros for those who earn between 9,000 and 12,600 euros per year.
  • 275 euros if you win between 12,600 and 17,000 euros.
  • 305 euros if the income is between 17,000 and 22,000 euros.
  • 425 euros for returns ranging between 22,000 and 27,000 euros.
  • 545 euros for those who earn between 27,000 and 32,000 euros per year.
  • 670 euros for those with returns between 32,000 and 37,000 euros.
  • 800 euros per month for 37,000 to 42,000 euros.
  • 935 euros for 42,000 to 47,000 euros
  • 1,075 euros for 47,000 to 48,841 euros.
  • 1,220 euros per month for those who earn more than 48,841 euros per year.

Source -

Under the new quotas, self-employed workers earning 17,000 euros or more would have to pay around 19 euros more than they do now, or 228 euros per year.

Those earning between 22,000 and 27,000 euros, will have to pay 139 euros more per month, a whopping 1,668 euros more each year.

Workers with an income of between 27,000 and 32,000 euros a year, will pay 259 euros more per month, almost double what they pay now.

It would mean around 280,000 freelancers who earn more than 48,841 euros per year will pay 934 euros more than if they paid the minimum fee, that is, almost five times more than what would correspond to them today and €11,208 per year.

Although a deal is thought to be “imminent”, ministry sources stress that other options are still on the negotiating table and that this may not be the definitive text.