Can I be self-employed and employed in Spain?

First of all, it should be made clear that it is legally possible to be both self-employed and employed. In fact, this employment situation is known as pluriactivity. However, in order for this to be legally possible, a series of conditions must be met and it must be verified that the registration with the Social Security has indeed been carried out in due time and form. Take note of the following characteristics:

1. No duplication in common contingencies 

One of the advantages of pluriactivity is that you only pay the contribution for common contingencies once, specifically in the payroll. Therefore, if you work full-time as an employee, this amount would be saved in the self-employed contribution. After all, this is an interesting circumstance because it would generate savings. Being self-employed and salaried is worthwhile in this case.

2. Self-employed and employee in a temporary situation

On the other hand, and this is a crucial point, the pluriactivity is conceived as a temporary solution. And why is this said? Because, although the law does not prevent you from contributing to both schemes simultaneously for a period of more than 18 months, the advantages in terms of contributions are less from this point onwards.

This is a factor that must be taken into account. It is no coincidence that multiple activity is often seen as an intermediate step, either to become self-employed or to become a 100% employee. And, due to its own cost structure, it is a model that can only be sustained if large amounts are invoiced.

3. Lower self-employment tax

If you are a moonlighting worker, the amount you have to pay in self-employed contributions is lower. For example, for information purposes, you would only pay 50% of the minimum base for the first 18 months and 75% thereafter. However, as long as you are paying full-time contributions. As a result, there are some savings. This is worth bearing in mind.

A worker who decides to become self-employed could also benefit from the flat rate for the self-employed. However, in order to do so, it is necessary not to be the administrator of a trading company, not to benefit from a reduction in contributions and not to have any debts with the Administration.

4. Refund of excess contributions

Although this step must be taken at the request of one of the parties, it is another possibility. Specifically, if the worker has made an excess contribution, they can claim a refund of the excess contribution in their next Income Tax Return. In this way, this excess money can be returned and less can be paid, albeit deferred.