Madrid’s Self-Employed Workers Will Pay No Social Security In Their First Year Of Business
Spain News
Published: 13 September 2022 10:03 CET
Updated: 31 January 2023 10:03 CET
New self-employed workers in Spain’s autonomous region of Madrid will pay no social security tax in 2023 it has been announced.
Under the new initiative which was confirmed on Monday by Madrid’s president Isabel Díaz Ayuso in the State of the Region debate, new autonomous workers won’t have to pay any social security payments in their first year of business.
Currently, self-employed workers in Spain pay around €60 per month in the first year which rises progressively to around €294 per month after two years of self-employment.
The monthly payments entitle the self-employed to benefits such as sick pay, maternity/paternity leave, as well as access to the healthcare system, however, it is separate from the income tax (IRPF) that all workers have to pay when their income meets a certain threshold.
From the first quarter of 2023, the social security payments for all new self-employed workers will be paid by the regional government, covering the payments for a full year.
Furthermore, if the worker's monthly income in the second year drops below the Minimum Interprofessional Wage (SMI), which is currently €1,166 per month gross, their payments will continue to be covered.
Self-employed mums will also benefit from the initiative and will not have to pay social security in the first two years after returning to work.
The move will potentially save the average new self-employed worker in the Madrid region hundreds, if not thousands of euros of the first year or two.
There are thought to be around 419,000 self-employed workers in the Madrid region with around another 30,000 new workers potentially benefiting from the initiative from 2023.
The self-employed associations had different views on the initiative. The National Federation of Associations of Self-Employed Workers (ATA) applauded the so-called ‘Zero Quota’, while the Union of Associations of Self-Employed Workers and Entrepreneurs (UATAE) said that workers needed “more concrete measures”.
Source
https://www.thelocal.es/20220913/new-self-employed-workers-in-madrid-to-pay-no-social-security-tax/
https://www.elblogsalmon.com/entorno/que-cuota-cero-autonomos-madrid-que-ha-anunciado-ayuso
https://www.lavanguardia.com/vida/20220912/8519516/asociaciones-autonomos-muestran-opiniones-dispares-anuncios-ayuso.html
