At the start of 2023, a new system came into force, whereby self-employed workers in Spain had to pay social security contributions based on what they earned, rather than a flat monthly fee.
While this sounded like good news, in reality, it meant that many self-employed people would end up paying more per month instead of less. In fact, only those earning below €1,700 would pay less.
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Instead of there being a fixed rate of €294, the fee goes down progressively each year to €200 a month for lower earners and progressively higher – up to €590 a month – for higher earners.
This means that from January 1st 2025, social security contributions will go up again and there will be an increase in the minimum bases in each of the 15 income brackets.
Those who have a net income of more than €1,700 and who pay contributions based on the minimum base of their income bracket, will see an increase in contributions of around €30 per month or an extra €360 per year.
Here’s what you can expect to pay in social security contributions from next year based on your monthly earnings.
Bracket 4: Net income between €1,700 and €1,850. Your contribution base will be €1,143.79, and you will pay a fee of €350, compared to the €320 you paid last year. This is a difference of €360 per year.
Bracket 5: Net income between €1,850 and €2,030. You will pay a fee of €370, compared to the €325 this year. The difference amounts to €540 per year.
Bracket 6: Net income between €2,030 and €2,330. You will pay a fee of €390, compared to the €330 this year. The difference is €720 per year.
Bracket 7: Net income between €2,330 and €2,760. You will pay €415 in fees in comparison with €340 this year. The difference amounts to €900 per year.
Bracket 8: Net income between €2,760 and €3,190. You will pay €440 in fees compared to €360 this year. That is €960 more each year.
Bracket 9: Net income between €3,190 and €3,620. You will pay €465 in fees, compared to €380 this year. This equals €1,020 more each year.
Bracket 10: Net income between €3,620 and €4,050. You will pay €490 in fees, compared to €400 this year. The difference amounts to €1,080 per year.
Bracket 11: Net income between €4,050 and €6,000. You will pay €530 in fees, compared to €445 this year. That is €1,020 more each year.
Bracket 12: Net income of more than €6,000. You will pay €590 in fees, compared to €445 this year. This means you will pay €720 more in fees each year.
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Changing your contribution base
Remember, it’s up to you to inform Social Security of your predicted earnings, so they know how much to charge you. You can change this contribution base up to six times per year as your earnings increase and decrease, meaning that you may not always be paying the same amount each month.
Self-employed workers in Spain pay some of the highest social security contributions in Europe, however, they also receive some of the greatest benefits. Health care, sick pay, maternity and paternity benefits and pensions are all available to self-employed workers here. This is not the case in many other European countries, who may have to pay extra for health insurance or do not get any maternity or paternity benefits if they’re self-employed.
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