Spain’s 3.2 million self employed workers face a big hike in the amount of ‘autonomo’ according to reports issued by the National Federation of Associations of Self-Employed Workers (ATA).
According to their information, those currently self employed through companies will pay an additional 340€ per year, and those on regular autonomo will pay an additional 260€ per year. They say the amount required will necessitate a 13th payment, one more than the current 12 payments made by self employed people.
The ATA say that they are opposed to the higher levy. They reject claims the higher tax contribution is necessary and appropriate due to greater benefits paid to self employed workers. The ATA say that though unemployment benefit is now theoretically due to autonomo individuals, the majority of claims are arbitrarily rejected.
The Spanish have a system of tax contributions made by self employed people known commonly as Autonomo. You will hear people saying ‘i am autonomo’, ‘paying my autonomo’, and very commonly complaining about the amount of autonomo ~ Spain’s level of default and required tax contribution for the self-employed is considerably higher than most major countries in Europe.
Of Spain’s 3.2 million self employed, a small minority of 400,000 contribute on fixed modulo schemes, too complicated to explain here, 1.5 million by ‘direct estimation’, these are self employed people without a company structure, and 1.3 million pay autonomo through a company, typically the owners of small business companies.
Most people pay around 275€ per month. There are initial reductions introduced to encourage people to go self-employed. For months 1-12 autonomo is €50. It then rises to €137 for months 13-18, then €192 for months 18-24 and then reverts to the usual full rate. Note that for women under 35 and men under 30, the reductions continue for three years.
Self Employed Comparison
According to the Face European Entrepreneur website, Spain’s minimum contribution is the nighest in all of Europe, by some margin. Read more about relative taxes here