The way Spain’s Social Security system manages its annual updates to contribution bases, the Minimum Interprofessional Wage (SMI), and contribution bases has become a clear example of how a lack of planning gradually turns into an accepted feature of the system. The issue is not that these changes are wrong, in fact, they are necessary … Read more
Under Spain’s new system of contributions based on real income, many self-employed workers are now receiving notifications from the Social Security authorities confirming a regularisation of their contributions. In some cases, this means an additional payment must be made. In others, a refund may be issued. While most attention is usually placed on the cash … Read more
If you are self-employed in Spain, you have probably heard that the way you pay into Social Security has changed. Since January 2023, a new contribution system is being rolled out that ties what you pay more closely to what you actually earn. It is a big shift—and one designed to create a fairer, more … Read more
Self-employed employees in Spain, also known as “autónomos,” are required to contribute to the country’s Social Security system, which determines their access to benefits such as pensions, sick leave, and unemployment benefits. In 2025, the income-based contribution system introduced in 2023 will continue to evolve, adjusting income brackets and contribution bases to create a fairer … Read more
In the coming days, professional advisors will receive a Social Security notice listing their self-employed clients who made contributions in 2023 that were higher than needed, as determined by their net computable income for 2023. This arises because 2023 saw the introduction of the radically different social security contributions system that is based on the … Read more
In this article we examine some oddities in the Spanish social security and income tax system for company directors/shareholders
Trying to understand wich country to pay social security is not easy and there are many pitfalls
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