Retirees in Spain get the right to go self-employed while keeping up to 25 per cent of their pension

Changes in retirement law in Spain mean that retirees can now have more options to stay active and give a top-up to their income without giving up their full pension rights. The modification in the law, which was approved recently by the Council of Ministers, opens up a more flexible retirement to self-employed workers for the first time.

It comes into force on August 28 of this year and matters now because many expats who retire to Spain, as well as locals, often look for practical ways to supplement modest pensions while still wanting to fulfil projects in their later years.

New rules allow pensioners to combine activity with income

People who receive a state contributory retirement pension can apply for this flexible model and continue to work if they want. They can register as “autónomos” (self-employed) and can still receive up to 25 per cent of their state pension during that period. Full healthcare protection is not at all affected, and social benefits would still be in place throughout.

Previous barriers limited choices for many

In the past only employees on a part-time contract could combine work with a partial pension. Being registered as self-employed usually meant losing pension payments completely or facing complicated restrictions. Retirees often waited months or even years before any return to work became possible, which discouraged experienced professionals from continuing in fields they knew well.

Retirees gain immediate flexibility under the updated system

Anyone with an approved pension can now request this option straight away once retired. There is no minimum waiting period that applies. Those who once avoided the self-employed status in the three years before retirement qualify easily. The change allows direct action instead of being forced into complete retirement or doing work on the side for cash-in-hand and off the books.

Clear differences appear when comparing situations

Consider a retired accountant who previously had to abandon all client work to protect his pension. Today he can offer limited consultancy sessions or tax advice on a self-employed basis and still keep 25 per cent of his pension payments.

A former teacher who wanted to run small language workshops faced full pension loss before. She can now organise online or in-person sessions as an autónomo and keep part of her pension while continuing to teach one-to-one classes.

Questions retirees often raise

Will this affect my healthcare cover? 

No. Participants keep full pensioner status for medical assistance and social protection during the flexible period.

Does previous early retirement create problems?

People who took involuntary early retirement will see improved pension calculations when they later return to full retirement after a flexible phase, based on updated contribution records.

Wider context behind these improvements.

For a long time in Spain, being a registered self-employed worker was considered having full-time work. You were either working full-time or at least able to work full-time or not. The update is part of the 2024 agreement between government, unions and employers and means to give smoother transitions toward retirement with a little part-time work. It encourages more people to keep active longer. Figures from the ministry show growing numbers already delay full retirement or return to some activity, with active pension cases rising noticeably in recent periods.

Expats across areas like Malaga, Alicante and the Balearic Islands often look for opportunities to keep busy, maintain skills and income. The measure applies across most social security schemes, although certain public sector groups are still outside its scope.

Retirees interested in this route should check their individual situation with social security offices after August 28 when the rules activate. Many will find it creates welcome room to stay productive on their own terms.