Already approved: benefits for autonomous workers

Even though initially it didn’t seem like a complicated task to approve a few urgent measures to benefit the work of autonomous workers, it turned out to be a process with plenty of ups and downs. However, some advances have been achieved so far for this economic sector.

In May, we published an article about the change on the contribution base for self-employed, which is also interesting to read.

Flat rate

This incentive means a temporary reduction on the fee of the contribution before the Social Security and aims at helping new autonomous workers to get started with their business with this discount on the regular fee. A fixed fee of only 50 Euro monthly.

Official data indicates that the initiative has benefited close to 635,000 new autonomous workers. Initially, the flat rate was valid for six (6) months, but it was later extended to a year.

Another achievement or benefits for autonomous workers is the reduction from five (5) years to two (2) years on the mandatory period without contributions to the Special Tax Regime for Autonomous Workers [Régimen especial de trabajadores autónomos, RETA for its initials in Spanish] to be able to apply for this benefit. Except for this period being unsubscribed, a period of three years could apply if the autonomous worker had already enjoyed the flat rate when he/she was previously registered in RETA.

On the other hand, the options for family members-collaborators that an autonomous worker can hire were broadened. Now, autonomous workers can hire their parents, children, siblings, partners, grandparents, parents-in-laws, grandchildren, sons-in-law and daughters-in-law. Previously, the help was only for those younger than 30 years of age or with only one relative employed who was younger than 45 years of age.

Bonifications were included for female autonomous workers who return to the workforce after becoming mothers (adoptions, foster care and tutelage) during a period not longer than two years after their professional activities stopped due to the previously exposed reasons. These individuals could apply for a flat rate of 50 Euro for an entire year after the date of their reintegration (if they choose to contribute based on the minimum base).

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Other benefits for autonomous workers:

If an autonomous worker hires an employee, he/she won’t lose the bonifications or previous assistance to the contribution of his/her fess before the Social Security.

The contribution amount will decrease up to 30% due to common contingencies where the worker will be protected from making said contributions.

Individuals younger than 30 (males) or 35 (female) can chain “bonifications and reductions during three years in contributions before the Social Security.”

Also, we invite you to read our article about associated work cooperatives for autonomous workers.

The following are issues pending for discussion:

  • The proposal to define and reduce the current extra charges “due to late payment of contributions.”
  • The possibility to exonerate the fixed fee to autonomous workers whose income does not reach the annual minimum inter-professional wage (9,907.80 Euros per year in 2017).

If you live in La Axarquía, in municipalities such as La Vinuela, Canillas de Aceituno, Competa or Torre del Mar, you can contact us for accounting or solicitor services related with upcoming innovations or benefits for autonomous workers.

Author: Rosana Tejada
Biographical Info: Rosana Tejada Crespo is a tax advisor holding a Master’s Degree in International Taxation. She specialises in companies and freelancers, tax regulations concerning foreign employees (Beckham Law), non-resident tax, inheritance tax and Spanish income tax. She is one of the founders of Tejada Solicitors, which comprises a group of English speaking solicitors, economists and architects.

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