¿Which is the national insurance contribution for self employed in Spain for 2024?
In this article we will explore the expected changes to the self-employed quota in 2024 and give advice on how to deal with it.
We will also look at some important aspects to bear in mind about this quota.
If you are self-employed or are considering becoming self-employed, this article will be of great interest to you.
Find out what developments could affect your finances and how to prepare for the challenges that may arise in relation to the self-employment tax in the coming year.
In short, find out how much you will pay in self-employed fees in 2024 with our table.
How much will I pay if I become self-employed in Spain in 2024?
Attention, self-employed in Spain! The self-employed regime in 2024 brings with it new updates to the self-employed quota in 2024 and important changes you should be aware of.
If you are self-employed or thinking of setting up your own business, this information is crucial for you.
In this article, we present you everything you need to know about the self-employed quota in Spain in 2024.
This article is written by the professionals at Asesoria Orihuela Costa not by a machine, contains 1,976 words and takes 5 minutes and 37 seconds to read.
Flat rate 2024
If you have not been registered in the last 3 years, and you register in 2024 as a self-employed person with the social security, you will pay a flat rate for 12 months, at the end of the month of 86 ¤ direct debited to your account.
Very important
It is very important to check that your bank account has been debited because if for any reason you do not pay the social security bill, they will take away the bonus and the 86€ becomes almost 400€.
What happens after 12 months of paying the flat rate?
After the 12 months two things can happen:
- If your monthly benefit does not exceed the minimum wage (at the date of publication of this article, 17 February 2024, the minimum wage is 1,323 euros per month), you will continue to pay 86 euros (with the corresponding increase in the MEI) for another 12 months.
Note, it will have to be below the SMI in 2024 and 2025.
- Your monthly profit must exceed the SMI. You will pay according to the table below.
The year 2024 brings with it changes to the spanish national insurance self-employed contributions table, which will have a direct impact on the self-employed. The update of these contributions means an adjustment in the tax obligations of the self-employed, so it is important to be aware of the changes.
Table of the self-employed quota 2024
The new contribution table for the self-employed for 2024 establishes different brackets depending on the contribution base, which means that those self-employed with a higher income will have to pay a higher contribution.
It is essential for the self-employed to be aware of these changes and adapt their budget accordingly in order to avoid surprises and keep their financial situation up to date.
This is the new income table to find out what self-employed contribution you will pay in 2024,
Cuotas | freelancers | 2024 | ||||
Net income brackets 2024 Euros/month | Minimum base | Cuota | Maximum base | Cuota | ||
| Section 1 | <=670 | 735,29 | 230,15 | 816,98 | 255,71 |
Section 2 | > 670 y <=900 | 816,99 | 255,72 | 900,00 | 281,70 | |
Section 3 | >900 y < 1.166,70 | 872,55 | 273,11 | 1.166,70 | 365,18 | |
| Section 1 | >= 1.166,70 y <= 1.300 | 950,98 | 297,66 | 1.300,00 | 406,90 |
Section 2 | > 1.300 y <=1.500 | 960,78 | 300,72 | 1.500,00 | 469,50 | |
Section 3 | > 1.500 y <=1.700 | 960,78 | 300,72 | 1.700,00 | 532,10 | |
Section 4 | > 1.700 y <=1.850 | 1.045,75 | 327,32 | 1.850,00 | 579,05 | |
Section 5 | > 1.850 y <=2.030 | 1.062,09 | 332,43 | 2.030,00 | 635,39 | |
Section 6 | > 2.030 y <=2.330 | 1.078,43 | 337,55 | 2.330,00 | 729,29 | |
Section 7 | > 2.330 y <=2.760 | 1.111,11 | 347,78 | 2.760,00 | 863,88 | |
Section 8 | > 2.760 y < =3.190 | 1.176,47 | 368,24 | 3.190,00 | 998,47 | |
Section 9 | > 3.190 y <=3.620 | 1.241,83 | 388,69 | 3.620,00 | 1.133,06 | |
Section 10 | > 3.620 y <= 4.050 | 1.307,19 | 409,15 | 4.050,00 | 1.267,65 | |
Section 11 | > 4.050 y <=6.000 | 1.454,25 | 455,18 | 4.720,50 | 1.477,52 | |
Section 12 | > 6.000 | 1.732,03 | 542,13 | 4.720,50 | 1.477,52 | |
From 1 January 2023, the determination of the taxable income of self-employed workers will be linked to their annual income and may be subject to adjustment if their income increases or decreases.
How does the self-employed contribution based on actual income work?
If you are self-employed, see how to estimate your annual income for the contribution taking into account the contribution rules of the new self-employed scheme.
New self-employed contribution system from 2023
From 1 January 2023, the determination of the taxable base for self-employed workers will be linked to their annual income obtained in the exercise of their economic, business or professional activities.
They will now pay contributions on their income
Your monthly contribution base will be determined each calendar year on the basis of your expected annual net income, within the general table of bases.
For example, if you expect an annual income of 18,000 euros, you will have to choose a base within the bracket corresponding to 1,500 euros per month (for 2023: bracket 2 of the general table).
IT IS VERY IMPORTANT THAT YOUR INCOME IS NOT THE INCOME
Yield = turn over minus expenses
The income comprising the contribution base shall be determined by the rules laid down in the personal income tax rules for the calculation of net income.
Once this income has been determined, a deduction for general expenses of 7% will be applied (except in certain exceptional cases, such as that of directors, where the deduction will be 3%).
How much will I pay in self-employment fees in 2024?
From 2023, the social contributions of the self-employed will be linked to the expected annual income, which will be adjusted the following year according to the actual income declared for personal income tax purposes.
If in 2024 you have finished paying the flat rate and you exceed the SMI, we can see how much self-employed contribution you will have to pay.
See a practical example of income estimation:
- A self-employed worker believed that he would receive in 2023 an income of 18,500 euros, so he chose a minimum base of 960, 78 euros (18,500/12=1,541.66, an amount that is in bracket 3 of the general table).
- At the end of the year 2023, the AEAT reports total income of 21,935 euros to the Treasury and, when applying the 7% deduction, net income of 20,400 euros is obtained (prorated over 12 months, this gives 1,700 euros).
- Despite the fact that the final net income was higher than the estimate, no change should be made because it is still included in the same bracket 3 and, therefore, the self-employed can remain in the minimum base.
What happens if I underpay my social security contributions?
If the provisional contribution paid is lower than the contribution corresponding to the minimum contribution base for the bracket in which your income falls, you must pay the difference between the two contributions by the last day of the month following notification of the result of the adjustment.
If the provisional contribution paid is higher than the contribution corresponding to the maximum contribution base for the bracket in which your income is included, the Treasury will refund the difference between the two contributions before 30 April of the following financial year.
Tips on how to deal with the new self-employed quota in 2024
In view of the new self-employed quota in 2024, it is important for the self-employed to take measures to cope with this increase.
First of all, develop your fortune-telling skills because this is what it’s all about, fortune-telling. How much I am going to earn in the future to know when I will have to pay self-employment fees in 2024.
Joking aside, it is essential to carry out a detailed analysis of your income and expenses to identify possible areas for savings and optimisation.
In addition, it is advisable to look for financing alternatives or grants available for the self-employed, such as subsidies or specific credits. We have already warned you that these are few and far between and very difficult to obtain. Many do not meet the requirements and those that do, are told that there is no budget.
It is also advisable to assess the feasibility of adjusting the prices of the products or services offered to compensate for the increase in the fee. This is definitely the best option.
Finally, good financial management and professional advice can be key to cope with this new economic reality.
And remember, you have 6 opportunities to report the rise or fall in your income to social security.
And lastly, it wouldn’t hurt to buy a crystal ball because you are going to need it.
