Changes to terms for self-employed in Spain

The self-employment status in Spain is know as “autonomo”.

One of the long standing problems with being self employed in Spain relate to the costs.

This has stifled entrepreneurship and added a further complication for individuals seeking to earn a living at a time when the Spanish economy needed a stimulus.

This has finally dawned on the powers that be, and after much debate, the Spanish Congress has confirmed that a new set of terms and conditions will shortly be introduced for self employed individuals in Spain.

Congreso de Diputados, Madrid

The key problem that autonomos (Self-employed) have faced is the fixed monthly social security payment. Currently the payment is discounted for the first 6 months to €50.00.

The new terms extend this period to 12 months following registration as an autonomo.

Individuals who return as autonomos within a period of 2 years not having benefited from the discount before, or 3 years if the discounted rate has already been claimed.

The reduced rate of social security payment will apply to female autonomos for a period of 12 months following maternity leave.

There will also be the possibility for female autonomos to freeze the monthly payment for up to 12 months for the purposes caring for a child or relative.

Once the new terms come into affect, all autonomos will have the option of taking a break 3 times per year to stop the social security payment temporarily.

This means that seasonal workers, or those on extended holidays, will be able to reduce their overheads during this period.

The authorities are aware that many individuals who are registered as autonomo, also hold an employed position.

In future, the taxation will be more automated, and autonomos will not need to apply in the event that excess tax has been paid.

There are also alterations to the way that pensions are to be claimed by autonomos who employ people and need to continue to be registered as self employed past retirement age.

In the future, these autonomos will be able to claim 100% of their pension whilst still being classed as an autonomo.

There is also a proposal to change the food allowances that autonomos can benefit from. The suggestion is that a daily allowance of €12.00 will be introduced as a valid expense.

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Autonomos (self-employed) who travel to and from a regular place of work will in future benefit from insurance cover in case of suffering an accident.

If you are self-employed in Spain, please feel free to contact us if you have any questions in relation to the new terms in Spain.

Our accounts department offer a full range of services for self-employed individuals in any type of work or location throughout Spain.

If you are thinking of becoming self-employed in Spain, please contact us for a no-obligation consultation.

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