Contribution obligations for the self-employed 2023

As we announced last October, as of January 1, 2023, new obligations will be incorporated for the self-employed in terms of contributions:

  1. Self-employment and contributions as of January 2023

From 01.01.2023 the self-employed workers will not be able to choose the contribution base they want, but this will be linked to the expected and definitive net income. With the exception of those who already have a higher contribution base, who can keep it if they wish.

  1. How and when is the new self-employed quota for 2023 calculated?

At the beginning of each year or at the moment of a new registration in the self-employed regime, the communication of the net income forecast for the calendar year must be made. With this information the social security will be able to determine the contribution base in this special regime, and will take into account the total net income, during each calendar year, for the different professional or economic activities.

The self-employed may change their contribution base during the following dates:

  • March 1st, if the application is made from January 1st to February 28th.
  • May 1st if the application is made between March 1st and April 30th.
  • July 1st, if the application is made from May 1st to June 30th.
  • September 1st if the application is made between July 1st and August 31st.
  • November 1st if the application is made between September 1st and October 31st.
  • January 1st, if the application is made between November 1st and December 31st.

The periodic regularization of the updating of the bases will be at the request of the individual self-employed, i.e., you decide how many times we adjust the quota. Please note that once the calendar year has ended and the income declaration has been made, the Tax Agency will communicate the declared income to the Social Security and the General Treasury of the Social Security will issue a resolution in this regard:

  • If the net income is higher than expected: The self-employed will have one month to liquidate the difference.
  • If you find a net income lower than expected: The Social Security will automatically refund the excess of the amount paid.

Depending on the forecast of annual net income, the self-employed will be placed in one of the established brackets in the table (general or reduced) through 2023 (in euros):

 

The calculation is as follows:

NET INCOME (N.I.) = Income – Tax deductible expenses
Tax deductible expenses
(excluding the expense for the self-employed fees).

To the previous result, subtract one:

  • 7% if you are self-employed
  • 3% if you are self-employed.

 

As a guideline, from the obtained figure, you can look for the amount in the table, in order to know the new quota or you can use the simulator quota autonomy 2023 Social Security: https://portal.seg-social.gob.es/wps/portal/importass/importass/tramites/simuladorRETAPublico

 

  1. Exemple

EXAMPLE CORPORATE SELF-EMPLOYED

EXAMPLE SELF-EMPLOYED DIRECT ESTIMATION

A self-employed company with an expected gross monthly salary of €2,000 and the 3% that can be deducted is subtracted. This self-employed person would have a net monthly income of 1.940€ .

It would be located on tram 8 and would pay a fee of 315 € / month.

A self-employed person with a net income of 24.000€ per year, we subtract 7% that can be deducted. This self-employed person will have a net annual income of 22,320€, which corresponds to a monthly NR of 1,860€. It would be located on tram 8 and would pay a fee of 315 € / month.

 

Contribution higher than that which would correspond for income

Self-employed workers who on December 31, 2022 pay contributions for a higher contribution base than the one that would correspond to them due to their income, can maintain this contribution base, or a lower one, even if their income determines the application of a lower contribution base.

 

  1. How will we work?

Get a Partner will make a forecast of the net yields that you have twice a year (at least twice a year, in January and October), however, more reviews of quotes can be made if you wish.

We will study together your particular case, simulate the new quota and provide you with a report so that you can decide if you want to keep the current quota, if it is lower.

Finally, the new calculated base will be applied in these two periods.

 

For more information, do not hesitate to contact us.