From January, 2019 every new entrepreneur can benefit from a reduction in his social security contribution that extends for 1 year at a flat rate of 60€ per month.
This reduction represents a great financial opportunity for those who are considering starting as autonomo
After the first year, the social security contribution will increase gradually until reaching the standard amount, which in 2019 is 283€.
Requisites and Exclusions
Excluded from this reduction are those in the following categories:
1) Administrators ( directors ) of limited company. This group is obliged to pay social security as a self-employed individual but they will not benefit from the reduction.
2) Autonomo Colaborador. These are those who work to support another family member’s business but they do not have a business of their own.
3) Employees of other companies that start up as an autonomo at the same time.
(These groups cannot benefit from the reduction stated here but they may be eligible for other reductions.)
Additionally, in order to be eligible for the reduction, the entrepreneur must not have been registered as an autonomo for the past 2 years and he or she should owe no money to Hacienda or Social Security.
How much is the contribution?
The standard autonomo fee is 283€ per month. In some cases an additional amount is added for extra cover in the national insurance. These additions are mandatory for some groups so the final amount corresponding to any given circumstances will vary.
The contribution of 283€ is the 30% of the minimum reference contribution base , which since January, 2019 it is 944€, for persons under 47. We show the examples below based on a standard amount of 283.00€.
This table shows the applicable reduction and end figures for the general case.
|During Months…||Reduction||End Figure based on 283€
For a simpler way to visualise how much you will have to pay in different scenarios we include here the amount to pay for the amount of months that each reduction applies.
Notice that all amount are being calculated considering the minimum standard contribution.
Men under 30 and women under 35.
Persons with disability or declared victims of gender violence
Full time employees who simultaneously startup as autonomo
Part time Employees with a 20+ hour contract who simultaneously startup as autonomo
This can give sufficient time to establish a business. Certainly now it is the time to start up!
At LimitConsulting we assist entrepreneurs who look for a clear path to follow with the knowledge, tools and assistance that they need in order to avoid common problems and achieve their goal of establishing a solid business during the time that they benefit from reduced social security costs.
We include free autonomo registration in every accounting package. Learn more