Do you know the new contribution system for the self-employed?

Approval of the new contribution system for the self-employed based on their net income. Effective as of January 1, 2023. The new contribution system for the self-employed consists of a progressivecontributionmodelthatwill be developed over the next 3 years (2023 – 2025).

Thus, self-employed workers with lower incomes will see their quota reduced, while it will be increased for those who earn more.

It will establish 15 contribution brackets in which each self-employed person will have to be inserted according to his/her income forecast.

On the one hand, the first tranches are going to imply a reduction of the quota with respect to the minimum base. On the other hand, in the higher brackets it will increase. The new system starts in 2023, with a minimum payment of 230 euros and a maximum of 500 euros.

In 2024, contributions will be between €225 and €530.

Finally, in 2025, self-employed contributions will be between 200 and 590 euros.

And, at the end of the year, the self-employed person will have to regularize his/her contributions.

This means that you will have to repay or reclaim dues in the event that your final net returns are below or above the amount indicated in your annual projections.

In 2023, the self-employed will begin topaySocial Securitycontributionsbased on their actual income, selecting one of the 15 net income brackets with their correspondingmonthlycontribution:

The entrepreneur/self-employed person has to choose well the net income bracket in which to remain, according to his/her experience in previous years.

You will be able to consult the established brackets through the Social Security website: www.seg-social.es

But which net income bracket do the newly self-employed choose?

For the self-employed who register during 2023, 2024 and 2025, the new flat rate implies a reduction in the contribution, which can be extended up to 24 months.

The fee for these new self-employed workers would be 80 euros/month. In the case of self-employed persons equal to or greater than 33 percent, victims of gender violence or terrorism, it will be €80/month for the first 24 months and €160 for the following 36 months.

What is the maximum period of time that a new self-employed person can apply the reduced quota for the new flat rate?

  • Duration of 12 months, plus another 12 months as long as it has been previously requested and your net income does not exceed the Minimum Living Wage.
  • If the self-employed person has a degree of disability equal to or greater than 33 percent, the flat rate will last for 24 months.

Activity integrated in the project “Entrepreneurship and Integration” financed by the Ministry, Social Security and Migration.