Read news from:
Austria
SHARE
COPY LINK

JOBS

Four benefits struggling self-employed people in Spain can apply for

If you're an "autónomo" (self-employed person) in Spain who is struggling to make ends meet due to the coronavirus pandemic, there are several financial support packages that you should know about.

Published: 12 October 2020 14:21 CEST
Four benefits struggling self-employed people in Spain can apply for
Photo: Martaposemuckel/Pixabay

Many of Spain's 3.2 million self-employed people (around 16 percent of the country's working population) have seen their income sources dry up during the country's lockdown and subsequent economic recession. 

Fortunately, a new set of government measures came into force on October 1st which aim in part to help self-employed workers who may have seen their businesses suffer during the pandemic. 

These financial support measures will be available until January 31st 2021. Find out below which type of aid you might be eligible for. Each one can be applied for through your mutua, which was assigned to you when you became autónomo. 

1)   Cese de actividad ordinario (cessation of normal business activity)

This benefit covers autónomos who have had to stop doing their usual economic activity because of the pandemic or those whose income has dwindled because of it. It was brought into force in July, but has now been extended.

Requirements: Applicants must have been contributing social security payments and been signed up to the autónomo system for the past 12 months. Your turnover for the fourth quarter must have fallen by 75 percent compared to the same period in 2019, and your income cannot exceed €5818,75 or €1939,58 per month.

2)   Ayuda por bajos ingresos (help for low earners)

The benefit for low-income workers has been put into place for all those autónomos who do not meet the conditions for the benefit above, such as those who have not contributed to the social security for the past 12 months. They will receive around 50 percent of the minimum contribution base, approximately €760.

Requirements: To be eligible for this benefit, income must not exceed minimum wage, set at €950 per month. You will also have to prove that your income has fallen by 50 percent in this fourth quarter, compared to the first three months of the year.

Taxes for autónomos. Photo: Steve Buissinne/Pixabay 

3)  Ayuda por suspensión de actividad (Suspension of business activity)

This help is aimed at autónomos who have had to close their businesses due to Covid-19 restrictions, such as those who might work in nightlife venues that have now been ordered to close.

Workers who are eligible for this benefit will receive 50 percent of the minimum contribution base, approximately €760 or 70 percent of the minimum contribution base (€950) if they have a large family and they are the sole earner.

Requirements: The applicant must have been discharged from their work within the last 30 days, prior to the application, in order to benefit.

4)  Ayuda para temporeros (Help for seasonal workers)

Like the first benefit, this help for seasonal workers has now also been extended. This is for those who have worked at least four months between June and December of this year. 

Requirements: You must have worked less than 120 days during 2018 and 2019 to be eligible. In addition to this, your income so far in 2020 can't have exceeded €23,275. 

READ MORE:

Self-employed in Spain: What you should know about being 'autónomo'

 

Autónomo: What we know about Spain's plan to change freelance contributions

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Can you pay taxes in Spain with a foreign bank account?

Many foreigners have tax obligations in Spain but might not have a Spanish bank account to pay them from. Changes by Spain's tax authorities might just make it easier, depending on your circumstances.

Published: 3 May 2024 09:01 CEST
Can you pay taxes in Spain with a foreign bank account?

Navigating the ins and outs of the Spanish tax system can be a little daunting at times. That’s why many people choose to pay for a gestor to handle it all for them.

But for many foreigners in Spain, especially those with property in the country but who aren’t resident, figuring out when and how to pay your taxes can be extra complicated, especially if you don’t speak Spanish.

READ ALSO: What does a ‘gestor’ do in Spain and why you’ll need one

This was compounded by the fact that, for many years, you couldn’t pay Spanish taxes from a foreign bank account. As such, many people were forced to open a Spanish bank account for the sole purpose of paying tax.

Can you pay taxes in Spain with a foreign bank account?

Fortunately, it’s no longer like that. From February 1st 2024, the tax authorities in Spain started allowing tax payments via direct debit from any bank account within the SEPA area, removing the need for a Spanish bank account.

So, in short, yes, you can pay your Spanish taxes with a foreign bank account — depending on the country in which the account is based.

What is SEPA?

SEPA stands for Single Euro Payments Area is a basically an integrated bank transfer system. SEPA includes all the EU members states, plus those in the EFTA (Iceland, Norway, Liechtenstein and Switzerland). The UK is also still member of the SEPA area, despite Brexit.

Before the change, you could only pay your taxes in Spanish via banks approved by the tax authorities.

READ ALSO: Spanish tax returns: A handy guide for foreigners

VAT and tax experts Marosavat explain that under the previous rules, “direct debit [was] only available when the taxpayer’s bank account belongs to a bank entity cooperating with the Spanish tax authorities. This requirement impose[d] an important restriction when using direct debit as a payment method, especially for foreign taxpayers.”

But slowly, the Spanish tax authorities have eased the rules and made it easier for foreign businesses and tax payers to pay their tax from abroad. First, in March 2021, the rules were relaxed for foreign businesses with tax obligations in Spain. 

Then from July 2023 foreign accounts were approved for deferment and split applications of tax debt, and from February 2024 for regular tax payments.

Following the changes, Marosavat says, “the payments will still be processed through a cooperating bank entity, which communicates with the taxpayer’s bank entity. In consequence, all commissions and bank expenses related to the procedure will be passed on by the tax administration to the taxpayer.”

According to Spain’s Agencia Tributaria website, which you can find an English language version of here:

  • Payments are allowed for those who do not have an open account in any collaborating entity in state collection management.　

  • It is especially intended for use by those who pay their debts from abroad.　

  • It can be done by both natural persons and legal entities.　

  • The payment will have releasing effects on the date of receipt and entry of the transfer. 　

Non-resident property owners

This is particularly welcome news for second home owners in Spain, many of whom are non-resident and manage their properties from abroad for most of the year. 

According to IberianTax, by extending tax payments to the wider SEPA area, “property owners can now continue to use their home country’s bank accounts or accounts from other SEPA countries to make tax payments towards their taxes. This change simplifies the process and alleviates the burden of setting up a separate Spanish bank unnecessarily.”

SHOW COMMENTS