The year 2017 already began with news for autonomous workers or self-employees, who pleasantly received the proposal approved by the Congress to reform the Law that protects them (RETA, which stands for Special Regime for Self-employed or Autonomous Workers for its acronym in Spanish), an initiative where the political party Ciudadanos took the lead and was supported by the majority of the political forces.
New autonomous workers or self-employees at La Axarquía, in municipalities such as Alcaucin, Canillas de Aceituno, Marbella, Vélez-Málaga or Torre del Mar are now able to enjoy the benefits agreed on this new reform of the law for autonomous workers. The details of the same are as follows:
The considerations regarding “changes in the system of contributions and deductions” stand out; however, it is mandatory to review the best ones included in the text that contemplates more than one hundred reforms (150) and supports about 3.5 million workers under these conditions.
An innovative measure being implemented is the adjustment of the income of autonomous workers in the system of contributions. Therefore, self-employed workers whose income “does not reach the minimum inter-professional salary (655.20 Euros)” shall have no obligation to make contributions.
Additionally, in terms of contributions, the precise calculation (instantly made) of the periods to subscribe or unsubscribe from the Social Security System are considered as important improvements. That way, the contributions correspond to the actual working days.
On the other hand, and following what is already implemented for Comunidad de Madrid, it is established “a flat fee of 50 Euros from six months up to a year for new autonomous workers, who shall have the right to apply deductions and bonifications over the quota set for common contingencies.” In consequence, the sector is protected in the broadest way for up to twelve months. This measure does not have a retroactive force.
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However, independent workers who are already established and have been requesting fairer quotas, will not benefit from this bonification.
Standardizing the VAT and IRPF (which stands for Income Tax for Individuals for its acronym in Spanish) are also considered, to avoid a different calculation through the deduction of expenses, such as the case of the vehicle used by the independent worker to perform his or her tasks.
The legislation also includes family related improvements for autonomous workers with such responsibilities. Thus, up to 20% of the expenses related to basic bills such as water, gas and electricity will be able to be deducted.
Besides, women who become mothers shall be able to enjoy the same conditions as those who are wage earners, including the bonifications those have during said period.
There is only one point that has not reached the full acceptance of the group, and that refers to the amount set for retirement, which in case of an increase, would imply an increase of the Social Security quotas for contribution as well.
However, the new law for autonomous workers aims to achieve a retirement pension calculation that takes into account the full working history of the individual within this sector.
We can only wait for the implementation of these new initiatives that many still view with suspicion, arguing that are simply more of the same proposals.
If you are an autonomous worker or self-employee and you are looking for a solicitor or lawyer, you can contact us for more details.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
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.
