Spain’s autónomos could pay zero social security for two years under new plan

When you run a business on your own, a quiet month does not mean the bills stop arriving. Rent, supplies, tax paperwork and social security contributions still need paying, even when customers are thin on the ground. For people starting out, those fixed costs can make the difference between getting a business off the ground and deciding it simply is not worth the risk.

Now, Spain’s main self-employed workers’ association wants political parties to consider a package of changes that would cut some of those costs, reduce paperwork and improve protection when business owners become ill or can no longer work.

The National Federation of Associations of Self-Employed Workers (ATA), led by Lorenzo Amor, has sent parties a list of 10 proposals ahead of Spain’s elections on 29 November. The organisation says the changes are needed because 63.2 per cent of self-employed workers earn less than the national minimum wage. 

New autónomos could pay no social security for two years

One of the central proposals is a zero-euro social security contribution for the first two years of self-employment. ATA wants the exemption extended to three years for people under 30, women starting a business after maternity, and workers whose earnings fall below the minimum wage. Students under 30 who run a business while completing formal education or vocational training would pay a proposed €30 a month throughout their course.

For established autónomos earning below the minimum wage, ATA also wants contribution reductions over two years. Depending on income, the proposed discounts would range from 15 to 75 per cent, funded through the state budget. 

VAT exemption for businesses earning under €85,000

Small businesses could also see a change to how they charge and declare VAT. ATA wants workers with annual turnover below €85,000 to be able to opt out of charging VAT to customers, alongside replacing quarterly VAT returns with a single annual declaration.

The proposal would bring Spain closer to the arrangements available to small businesses in several other EU countries. A separate proposal would allow businesses with cross-border transactions to qualify for the VAT scheme up to a turnover of €100,000. ATA is also calling for changes to deductible business expenses, including allowing 50 per cent of certain vehicle, utility and meal costs to be deducted for income tax and VAT purposes without having to justify each expense individually. 

More support during illness, maternity and business closures

The proposals go beyond tax and contributions. ATA wants self-employed workers to have better access to support when their income collapses or they have to close a business.

It proposes easing the conditions for receiving the cessation-of-activity benefit when income falls, and making the benefit automatic in certain permanent closures. It also wants the unemployment subsidy available to people over 52 extended to autónomos who have exhausted their cessation-of-activity payments.

For pregnancy and childcare, the organisation is calling for subsidised cover so a replacement can be hired and trained before a worker takes maternity leave. It also wants two extra weeks of leave for breastfeeding, more flexible maternity leave and greater flexibility for returning to work after the initial period of leave. Self-employed people caring for a seriously ill or disabled family member could also receive a full contribution discount, up from the current 75 per cent, under the plan. 

Changes to contributions and retirement

ATA wants planned increases in self-employed contributions frozen until 2030, with contribution bases set annually through the state budget process. It is also seeking changes to the rules for active retirement, which allows people to keep working while receiving part of their pension.

Under its proposal, autónomos without employees would gradually receive a larger share of their pension while working, reaching 100 per cent in the fourth year. Those with at least one employee, partner or collaborator would be able to receive the full pension from the first day. Other requests include improved pension-plan tax deductions, incentives for hiring younger workers and a simpler route out of debt for people whose businesses fail.

The package also calls for less administrative red tape, including a single online portal for business owners, a first-warning approach to certain mistakes before financial penalties are imposed, and fewer official notifications outside normal working hours.  The proposals would affect costs, tax obligations and social protection for autónomos across Spain. Their impact will depend on which measures, if any, political parties choose to adopt.