07 Nov 2017

Urgent Reform for Self Employment (Law 6/2017 24th October)

The following modifications have been put in place as from 1st January 2018. Should you need assistance or more information then please do not hesítate to contact us at EBF Consulting +34 928513311 or admin@ebfconsulting.com

Social Security and Employment

  1. As from January 2018 – Tarifa Plana is extended from 6 to 12 months, allowing sole traders to benefit from reduced social security contributions of 50 euros per month. Also, the limit of 5 years is reduced to 2 years since being registered as self-employed to be able to benefit from the Tarifa Plana.
  2. Currently the social security contribution is per month irrespective of the date you registered or de-registered. However from the 1st January, you are able to register as self-employed up to three times per year and only pay the social security for the number of days you have been registered as trading.
  3. Self-employed people are able to change up to four times a year their base for social security contributions i.e. per quarter as opposed to currently once a year,
  4. Possibility to carry out an activity and receive 100% of your Spanish state pension.
  5. The surcharge for late payment of social security is reduced from 20% to 10% for the first month.
  6. Up to 50% of the social security contributions will be refunded in the case of multi-employment.
  7. Improvement of professional and family conciliation – a 100% allowance

Tax Measures for Self-Employed Sole Trader

  1. Allowance of health Insurance that covers the taxpayer and their spouse plus children under 25 years of age. (Limit 1500 euros)
  2. Should the sole trader carry out their activity from their home then the supply expenses such as water, electricity, telephone/internet can be offset – 30% of the square metres dedicated to the activity.
  3. Allowance for restaurant and hotel expenses necessary to carry out the business activity, same limit established for company employees.

Information by E.B.F Consulting S.L.  E.B.F Consulting has been providing tax and accounting services to expatriates in Europe since 1999. Office is based in Lanzarote, Spain.  Visit www.ebfconsulting.com for more details. Copyright © E.B.F Consulting 2017

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