On October 25th, 2017, the Spanish State Official Gazette (BOE) published the Law BOE 6/2017, of October 24th, about Urgent Amendments for Self-employed workers, and some of our clients have already consulted our office, Pérez Parras Economistas & Lawyers.
Self-employed workers in Spain have a prominent role in the labour market because, despite a significant decline in recent years, it has shown a significant capacity for recovery and an enormous potential in terms of creating employment.
With these measures taken in the Senate, it is intended to motivate entrepreneurs wanting to create new businesses.
What we intend with this article, is to summarize the most important measures that can favour the self-employed worker.
Bonus for the payment Self-employed fees
The flat rate fees for a new self-employed person, have been now extended by 24 months, with the following sections: the first twelve months with a fee to pay of € 50, the following six months with a reduction of 50% of the regular fee and the last six months with a reduction of 30%. All these benefits are for those entrepreneurs who sign up for the first time or who have not been registered in the 2 previous years.
Image 1. Self-employment bonus
Modifications of the type of the rates for contributions
– The self-employed worker may change the rates for social security contributions up to 4 times in any different periods.
The dates are the following:
– April 1, if the request is made between January 1 and March 31.
– July 1, if the request is made between April 1 and June 30.
– October 1, if the request is made between July 1 and September 30.
– January 1 of the following year, if the request is made between October 1 and December 31.
– In addition, the self-employed worker may register and cancel registration in the social security as self-employed up to three times a year and pay only for the periods that he has actually worked.
Refund of the social security quota when on paternity and maternity leave
A refund of 100% of the Social Security contribution quota is applied during maternity, paternity and child adoption leave.
Image 2. Refunds in the quota on maternity and paternity leave
New tax deductions
With the new reform, the self-employed will be able to deduct up to 30 % of the expenses such as water, electricity and telephone if they work from home. In any case, the percentage to be deducted will be proportional to the square meters of the house that are using as work space.
With the new law it will be possible to deduct up to 26.67 euros per day for expenses in food allowances and maintenance, and the amount goes up to 48.08 euros if the trip is made abroad. In to in order to apply for this advantage it will be necessary to justify the payments by credit card mainly and prove that they are not expenses incurred while on holidays.
Reduction of fines for delays in payments to Social Security
This new law reduces by half the surcharges that penalized the self-employed for delaying the payment of their Social Security contributions. The sanction goes from being 20% of the quota to 10% in the first month.
Automatic refund of over-quotation of workers in multiple activity
Self-employed workers with multiple jobs, could request the excess of tax contributions whenever the exceeded amount had surpassed the 12.368,23 euros. After the reform, the refund is contemplated without the express request of the interested party.
Measures to favour the hiring of family members
The self-employed person will benefit from a bonus of 100% of the company quota for common contingencies during 12 months for permanent hiring of family members. The main novelty is that family members can be hired as paid workers in the social security scheme even when they live in the family home of the self-employed person they hire. There will not be a limited number for the amount of people that can be hired. Also, there are government aid benefits granted when contracting young people under 30 or a family member under 45 years of age. Among the requirements, it is requested that there have been no unfair dismissals in the previous 12 months and to maintain the contract six months after the bonus period.
They can also hire as employee’s the own children under 30 with disabilities, even if they live with them.
Image 3. Fiscal benefits of being self employed
Equalization of work accidents for self-employed workers
An accident at work “in itinere” is considered to be the occupational accident that occurred when going to or returning from the place of the economic or professional activity.
The quota of the self-employed members is not any more connected to the minimum inter-professional salary system
The measures also include the correction of the share of corporate self-employed workers, which is disconnected from the increase in the minimum inter-professional salary each year. Now it will be the General Government Budgets of each year that give this figure after negotiating with autonomous organizations.
Improvement of training in occupational risks
The law provides for the participation of the self-employed in permanent occupational risk training and information programs
These are some of the most relevant measures, but without a doubt there are other measures of interest that will also affect self-employed workers. Therefore, if you find yourself in this situation and want us to help you, do not hesitate to consult us and we will be very happy to assist you personally in our offices in Málaga and Nerja.