September 22, 2023

Taylor Daily Press

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This is what the self-employed will pay per month in Spain from 2024

This is what the self-employed will pay per month in Spain from 2024

All self-employed or “freelancers” must pay a certain contribution each month. After months of discussions and adjustments, the new system was changed with pros and cons in 2023 to get “fair” monthly payments. click here For a detailed explanation on our website about the self-employed system in Spain.

From January 1, 2023, the self-employed in Spain are required to pay their net income, with a deduction of 7% for overhead costs and on the basis of rates established until 2025, with a schedule of 15 income levels, minimum and maximum premiums. The new RETA thus has a transition period of three years, during which the self-employed have the option to change levels every two months, with a total of six changes per year, to adjust to the expected earnings in each period of years and their professional activity.

The new system was launched in 2023, with a first level with a minimum installment of €230 per month (eg for a self-employed person with net income equal to or less than €670 and a contribution base of €751.63 per month) and a final level with a minimum installment of 500 euros per month, which will be paid by someone who declares more than 6,000 euros and has a base of 1,633.99 euros.

From 2024

According to the tables published by the Ministry of Social Security, the minimum premiums paid in 2024 at the first income level will drop to 225 euros, but the minimum paid at the higher level will rise to 530 euros per month.

In 2024, the premiums will exceed €300 per month for self-employed persons who declare a net income of between €1,700 and €1,850 per month and have a contribution base of €1,045.75. On the other hand, self-employed persons with a net income in the range of 3,620-4,050 EUR and a contribution base of 1,307.19 EUR will pay a minimum of 400 EUR in installments per month.

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The minimum premium at the low-income level will drop in 2025, the last year to switch from RETA, to €200, while it will become more expensive for those who earn more. They will pay a minimum of €590 per month, which corresponds to self-employed persons declaring more than €6,000 per month and having a base of €1928.10.

Tarifa Plana

During the period 2023-2025, people who register for the first time in the RETA system can receive a reduced premium (PLANA tariff) of 80 euros per month for the first 12 months of their activity. After these first 12 months, self-employed people who expect their net income to be below the minimum wage (in 2023 it will be €1,080) can receive a reduced premium for another 12 months.

The application must be submitted at the time of registration. The conditions to qualify for the Plana Tariff are that self-employed people have not registered as self-employed within the past two years, or three years if they have previously benefited from this discount.