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Date Published: 04/10/2024

A third of self-employed workers in Spain will be charged extra social security in November

Autónomos in Spain who have underpaid on their social security contributions will be charged the difference this November

November could wind up being a very expensive month for self-employed workers, more commonly known as autónomos, as in the coming weeks Spain will enforce a new system for social security contributions for the self-employed.

This process is similar to a tax return, where the government will check if the self-employed have paid the right amount based on their real income. The Association of Self-Employed Workers (ATA) estimates that about 25-30% of autonomos will have to pay extra. The exact numbers are still being finalised by the Tax Agency.

This is the first time the new system, which started in 2023, will be used. The main goal is to match the social security contributions of self-employed workers with their actual income.

Under the new system, contributions are based on income brackets, similar to the way personal income tax (IRPF) works.

However, government data shows that only 20% of self-employed workers changed their contribution base when the new system was introduced last year. Out of those, only a third raised their contribution base.

But, autonomos earning a net income more than 1,700 euros a month should have increased their contributions.

Self-employed workers who chose a contribution base lower than their real income will need to pay the difference. The government will calculate this and send them a letter explaining how much they owe, much like how income tax is handled.

ATA estimates that this 30% of self-employed workers who need to pay more will owe between 1,000 and 1,200 euros on average.

While many people might have been tempted to opt for the lower rate to reduce their monthly outgoings, it’s worth remembering that even though the additional payment will increase the workers’ contribution base, it means they will receive better benefits and pensions in the future.

The Tax Agency is still calculating each worker’s earnings after deducting their business expenses, and Elma Saiz, the Minister of Social Security, has invited social agents and self-employed associations to begin talks on how to regularise the process on October 7.

Also of interest: Spain launches handy new social security app for self-employed and contracted workers

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