Initially of 2023, a brand new system got here into pressure, whereby self-employed employees in Spain needed to pay social safety contributions based mostly on what they earned, slightly than a flat month-to-month charge.
Whereas this gave the impression of excellent news, in actuality, it meant that many self-employed folks would find yourself paying extra per thirty days as an alternative of much less. In actual fact, solely these incomes beneath €1,700 would pay much less.
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As an alternative of there being a hard and fast price of €294, the charge goes down progressively every year to €200 a month for decrease earners and progressively greater – as much as €590 a month – for greater earners.
Which means from January 1st 2025, social safety contributions will go up once more and there might be a rise within the minimal bases in every of the 15 earnings brackets.
Those that have a internet earnings of greater than €1,700 and who pay contributions based mostly on the minimal base of their earnings bracket, will see a rise in contributions of round €30 per thirty days or an additional €360 per 12 months.
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Right here’s what you possibly can anticipate to pay in social safety contributions from subsequent 12 months based mostly in your month-to-month earnings.
Bracket 4: Internet earnings between €1,700 and €1,850. Your contribution base might be €1,143.79, and you’ll pay a charge of €350, in comparison with the €320 you paid final 12 months. This can be a distinction of €360 per 12 months.
Bracket 5: Internet earnings between €1,850 and €2,030. You’ll pay a charge of €370, in comparison with the €325 this 12 months. The distinction quantities to €540 per 12 months.
Bracket 6: Internet earnings between €2,030 and €2,330. You’ll pay a charge of €390, in comparison with the €330 this 12 months. The distinction is €720 per 12 months.
Bracket 7: Internet earnings between €2,330 and €2,760. You’ll pay €415 in charges as compared with €340 this 12 months. The distinction quantities to €900 per 12 months.
Bracket 8: Internet earnings between €2,760 and €3,190. You’ll pay €440 in charges in comparison with €360 this 12 months. That’s €960 extra every year.
Bracket 9: Internet earnings between €3,190 and €3,620. You’ll pay €465 in charges, in comparison with €380 this 12 months. This equals €1,020 extra every year.
Bracket 10: Internet earnings between €3,620 and €4,050. You’ll pay €490 in charges, in comparison with €400 this 12 months. The distinction quantities to €1,080 per 12 months.
Bracket 11: Internet earnings between €4,050 and €6,000. You’ll pay €530 in charges, in comparison with €445 this 12 months. That’s €1,020 extra every year.
Bracket 12: Internet earnings of greater than €6,000. You’ll pay €590 in charges, in comparison with €445 this 12 months. This implies you’ll pay €720 extra in charges every year.
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Altering your contribution base
Keep in mind, it is as much as you to tell Social Safety of your predicted earnings, in order that they know the way a lot to cost you. You possibly can change this contribution base as much as six occasions per 12 months as your earnings improve and reduce, which means that you could be not all the time be paying the identical quantity every month.
Self-employed employees in Spain pay among the highest social safety contributions in Europe, nonetheless, in addition they obtain among the best advantages. Well being care, sick pay, maternity and paternity advantages and pensions are all accessible to self-employed employees right here. This isn’t the case in lots of different European international locations, who could need to pay additional for medical health insurance or don’t get any maternity or paternity advantages in the event that they’re self-employed.