TAXES IN SPAIN. SOCIAL SECURITY FOR SELF EMPLOYEES (AUTONOMOS)
In Spain there are several regimes in order to pay to the Social Security, but there are two main cases: “régimen general” and “autónomos”. The first one is for employees who aren´t shareholders or directors of the company with no ownership relation with the company. The second one, named as “autónomos” is for self employees but also can include some other cases.
Who has to pay Social Security as “autónomos” in Spain?
- Mainly there are two cases:
Individual freelancers or self employees with own business (professionals or any kind of business but not as a company) - A person who is director or shareholder of a company and is working for the company and has control of the company (eg Director with more than 25% of the shares of the company or employee with more that 33% of the shares of the company).
How much has to pay an Autónomo to the Social Security?
In case it is the first time as autónomos, there is a special bonus, called “tarifa plana”, for the autónomos monthly payment, so the minimum amount to be paid is 60 euros per month for the first year. After that the autónomo will pay around 190 euros for six months, around 190 for six month and finally almost 290 euros per month. There are some cases with special amounts (young people, disable persons, etc.). These amounts are the minimum, but the autónomo can choose to pay more in order to have more coverages.
Is it convenient to pay more as autónomo?
The autónomos payment has three main purposes:
In order to have medical assistance in the Spanish Social Security system.
In case you are ill or have an accident, you can obtain a payment from the Social Security or the Mutua (the company that takes care of these payments).
For the retirement pension.
The amounts that an autónomo will receive in the last two cases will depend on the amount that pays as autónomos. If you pay more as autónomos you will receive more in case of illness / accident (“baja”) and in your retirement pension.
Currently the Social Security allows quarterly to the autónomos to change the amount to pay to the Social Security.
If you have any questions about starting as an autónomo in Spain, you can contact jose@asesoriagarcialopez.es
When I should prepare it?
For 2020, the term to submit this declaration ends in March 2021. However, as you have to inform about some data that sometimes are not easy to find (cost of acquisition of real properties, date of opening of bank accounts, full details of bank accounts, etc.) you should prepare this information well in advance.
If you have any questions you can contact us in order to prepare a quote of our fees.
Big companies, that have invoiced more than six millions euros in the previous year, as they have to prepared monthly tax declarations, not only for VAT but also for withholding taxes, etc.
Companies included in REDEME, a special regime for those companies that want to prepare monthly their declarations in order to claim the VAT balances in their favour at the end of every month instead of at the end of the year. In this way the companies can receive these amounts faster (usually in two or three months after the declarations). Otherwise they would receive the VAT return in May / June of the next year, as the tax refund could be only requested in January, when preparing forth quarter declaration.
Although it is not usual some companies can submit their registers with the SII voluntarily.
What does the SII consist of?
It is the information to submit to the tax office through the Tax office website with the main datas of the incoming and issued invoices. This information has to be sent in the period of four days since the invoice has been issued or four days since the invoice has been received in case of incoming invoices.