Key Changes for Self-Employed Autonomos in Spain in 2025
Expat Tips
Published: 18 March 2025 15:31 CET
In 2025, over three million self-employed (‘autónomos’) workers in Spain are facing important changes that will affect their social security contributions, VAT reporting, and income tax filings. These updates are part of an ongoing effort to make the system fairer and more transparent for self-employed professionals.
Changes to Social Security Contributions
Since 2023, Spain has been gradually transitioning to an income-based system for social security contributions. In 2025, this system is fully in place, ensuring that autónomos pay according to their actual earnings. The government has categorized contributions into 15 income brackets, meaning self-employed individuals will now pay as follows:
- Those earning up to €670 per month: approximately €200 per month.
- Those with incomes between €1,700 and €1,900: approximately €294 per month.
- High earners making more than €6,000 per month: up to €598 per month.
For lower-income self-employed workers, this means lower contributions. On the other hand, those with higher earnings will see increased monthly payments. The aim is to make the system more balanced and equitable.
New Tax Filing Requirements
Starting in 2025, all self-employed individuals, regardless of how much they earn, must file an annual income tax return (Declaración de la Renta). Previously, this was only required for those earning €1,000 or more per year. This change ensures greater tax transparency and aligns with Spain’s push for a more accountable tax system.
Adjustments to VAT Reporting
For autónomos concerned about VAT, there’s a significant update tied to European Directive 2020/285. Under the new rule, self-employed workers who invoice less than €85,000 annually are now exempt from quarterly VAT declarations. This reduces bureaucratic red tape and makes tax filing simpler. While the directive was introduced in 2024, full implementation took place in January 2025.
Zero Social Security Contributions in Certain Regions
Some regions in Spain continue to offer financial incentives for new self-employed workers. If you’re starting a business in 2025, you might be eligible for a subsidy:
- Canary Islands: New autónomos can enjoy two years of fully subsidized social security payments. If their income remains below the minimum wage, they may qualify for an extra year of reduced contributions.
- Extremadura: Entrepreneurs in this region can receive up to €960 per year in support, provided they stay in business for at least two years and meet other requirements.
- Galicia: The regional government has allocated €9.6 million to help around 10,000 new self-employed workers by covering their first year of social security payments.
Funding for Digital Transformation
Another ongoing initiative is the expansion of Spain’s Kit Digital program. This initiative now includes property owners’ associations and civil societies. Eligible participants can apply for financial support to develop websites, launch marketing campaigns, or digitize their businesses. The application window remains open until October 2025.
Postponed Deadline for Digital Invoicing
Although Spain’s Create and Grow Law initially mandated electronic invoices for businesses, the government has extended the deadline for compliance. Self-employed workers and companies with revenues exceeding €8 million now have an additional year to transition to digital invoicing. This extension provides businesses with more time to adapt to the new system.
Social Security Contribution Adjustments
Many autónomos overpaid or underpaid their social security contributions in 2024 due to the transition to the income-based system. To correct this, the General Treasury of Social Security (TGSS) will adjust payments in 2025. Here’s what to expect:
- If you overpaid, you’ll receive an automatic refund by April 30, 2025.
- If your contributions were too low, the TGSS will adjust your payments accordingly.
- If there is a deficit in your contributions, you may be required to make additional payments.
Self-employed workers will be notified about these adjustments via the Social Security’s telematic services and DEHú. The TGSS has also set up a helpline at 91 908 70 67 to assist those affected by the changes.
Final Thoughts
These updates signal Spain’s continued commitment to reforming self-employment regulations. By aligning contributions with earnings, simplifying tax obligations, and encouraging digital transformation, the government aims to create a more sustainable and transparent system for autónomos. While some will see reduced contributions, higher earners will need to adjust to increased payments. The key takeaway? It’s essential to stay informed and adapt to these changes to ensure compliance and financial stability.
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