Learn how much contribution you will have to pay as self-employed based on your incomes.

Until the beginning of 2023, those under the “autonomo” contribution system (sole traders, company directors, and family members assisting in the business) contributed to the Social Security based on a theoretical salary, which was taken as a reference to calculate benefits. The payment to Social Security was not linked to the real income but to a figure chosen by the individual within certain limits: the contribution base.

Since 1 January 2023, the contribution system has been based on net business income. In other words, contributions are now calculated based on your actual income.

This change has affected the contributions paid since 2023; some autonomo with lower earnings have benefited from a reduction in the amount they pay to Social Security every month, whereas those with higher incomes have seen their contributions increase.

The law established a transition period of 3 years in which the contributions will adjust gradually until they settle at their final figure by 2025.

• A person earning 12,000€ per year paid 275€ per month in 2023, is paying 267€ in 2024, and will pay 260€ in 2025.

• On the other hand, a person earning 24,000€ per year paid 330€ in 2023, is paying 340€ in 2024, and will pay 415€ in 2025.

In the following tables, you can see the contribution corresponding to the declared incomes in each year.

For each interval of actual income, there is the possibility to choose between the minimum contribution base and a maximum one. This allows for a measure of fine-tuning one’s contribution base.

Assuming one always chooses to pay the minimum possible contribution this table boils down the results.:

Projection of earnings.

This new method requires that you make a projection of earnings to set your contribution. Surely, this will need to be adjusted along the way. For that reason, this new method allows up to 6 changes per year in your contribution base.

At the end of the year, it will be time to make the final adjustment. It will be a time to pay for the difference or request a refund.

How do they know how much I earned during the year?

The Social Security has ways to know the actual income of an autonomo. Reports made to the tax office via Modelo 130 show the balance of the business. Since the self-employed trade in their own name, whatever the business net balance shows is considered their earnings.

Autonomos showing a high net balance will do well to consider other legal forms, such as a company, where there’s a distinction between what the business is earning and the salary of a director.

How the new contribution system affects new self-employed workers

Are you considering becoming self-employed? There is no need to be afraid to start. The Government will continue to offer the Flat Rate of 80 euros for new Autonomos.

This benefit can last from 12 to 24 months, although it can be extended up to 36 months. This will depend on the Autonomous Region in which you are located and the net income obtained during the first year.