{"id":27711,"date":"2024-07-09T09:15:21","date_gmt":"2024-07-09T09:15:21","guid":{"rendered":"https:\/\/www.asesoriaorihuelacosta.com\/?p=27711"},"modified":"2024-07-16T19:47:37","modified_gmt":"2024-07-16T19:47:37","slug":"the-concept-of-cessation-of-activity-in-self-employed-persons","status":"publish","type":"post","link":"https:\/\/www.asesoriaorihuelacosta.com\/en\/the-concept-of-cessation-of-activity-in-self-employed-persons\/","title":{"rendered":"The concept of cessation of activity in self-employed persons"},"content":{"rendered":"\t\t
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The cessation of self-employed<\/a> activity does not necessarily refer to the permanent closure of a business, it sometimes refers to an interruption for various reasons. Below, we analyse the concept of cessation of self-employed activity and its implications.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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What is the cessation of activity for the self-employed?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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The cessation of activity for the self-employed is the temporary or permanent interruption of the economic activity carried out by a self-employed worker. This situation, equivalent to unemployment in the case of employees, can be voluntary or forced by various circumstances, such as economic losses, force majeure, health reasons or technical and productive reasons. In Spain, the cessation of activity has legal and administrative implications, and allows the self-employed to access certain benefits and financial aid.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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Documents required for notifying the cessation of self-employed activity\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In order to notify the cessation of activity in Spain, the self-employed must submit a series of documents to the Social Security and the Tax Agency.<\/p>

This procedure is essential to formalise the interruption of the activity and to apply for the unemployment benefit. The necessary documents are:<\/p>

  • Form TA0521<\/strong>: This form must be filed with the Social Security General Treasury (TGSS). It specifies the type of cessation of activity and the date on which it occurs.<\/li>
  • Form 036 or 037<\/strong>: Depending on the tax regime in which the self-employed person is registered, one of these forms must be filed with the Tax Agency to report the cessation of activity. Form 036 is a census declaration for the self-employed and companies, while form 037 is a simplified version of 036.<\/li>
  • Proof of deregistration from the IAE: Deregistration from the Economic Activities Tax (IAE) must also be notified to the Tax Agency, which means submitting proof of this deregistration.<\/li><\/ul>

    Additional documentation depending on the cause of the cessation: Depending on the cause of the cessation of activity, it may be necessary to provide additional documentation.<\/p>

    For example, if the termination is due to economic reasons, it will be necessary to present accounting documents proving the losses.<\/p>

    If it is due to health reasons, a medical report must be provided.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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    Severance pay\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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    The unemployment benefit is a financial aid intended for the self-employed who have had to interrupt their activity.<\/p>

    This benefit is managed by the mutual insurance companies that collaborate with the Social Security, or the National Institute of Social Security (INSS), and is intended to provide temporary financial support while the self-employed seek to reactivate their activity or find a new job.<\/p>

    To access this benefit, the self-employed must meet certain requirements and present the appropriate documentation.<\/p>

    Be affiliated and registered in the Special Regime for Self-Employed Workers (RETA).<\/p>

    Have covered the minimum contribution period for termination of activity, which is at least 12 consecutive months immediately prior to termination.<\/p>

    Proof of the cessation of activity due to economic, technical, productive, organisational or force majeure causes, or due to loss of administrative licence.<\/p>

    Be up to date in the payment of Social Security contributions. If there are outstanding debts, a period of 30 calendar days is allowed to regularise the situation.<\/p>


    The amount of the benefit is calculated on the basis of 70% of the regulatory base, which is obtained from the average of the contribution bases of the last 12 months prior to termination.<\/p>

    The duration of the benefit depends on the time contributed and varies between 2 and 12 months, except in the case of self-employed workers over 60 years of age, who can receive it for a maximum period of 24 months.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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    Unemployment for the self-employed in Spain\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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    The “unemployment for the self-employed”, formally known as unemployment benefit, is a relatively recent measure in the Spanish social security system, designed to provide a safety net for self-employed workers who find themselves unemployed. This benefit system has been improved and adapted in recent years to better meet the needs of the self-employed.<\/p>

    How the unemployment benefit is paid:<\/h3>

    Once the application for unemployment benefit has been approved, payment is made monthly by bank transfer to the account indicated by the applicant.<\/p>

    During the period of receipt of the benefit, the self-employed person must continue to pay the Social Security contribution corresponding to the severance benefit, although the minimum base will be covered by the mutual insurance company or the INSS.<\/p>

    Requirements for accessing unemployment benefits for the self-employed:<\/h3>

    Be affiliated and registered in the Special Scheme for Self-Employed Workers (RETA) or in the Special Scheme for Sea Workers.<\/p>

    Have covered the minimum contribution period of 12 continuous months immediately prior to the cessation of activity.<\/p>

    Proof of the cessation of activity by means of documentation that demonstrates the justified causes, such as economic losses of more than 10% of income, declaration of bankruptcy, reasons of force majeure, etc.<\/p>

    Be up to date in the payment of Social Security contributions. If they are not, they are allowed to regularise their situation within 30 calendar days.
    Not have reached retirement age, unless the self-employed person is not entitled to a retirement pension.<\/p>

    Duration and amount of the benefit:<\/h3>

    The duration of the benefit depends on the previous contribution period and varies between 2 and 12 months, or up to 24 months for self-employed persons over 60 years of age.<\/p>

    The amount of the benefit is set at 70% of the regulatory base, which is calculated on the basis of the average of the contribution bases of the last 12 months.<\/p>

    Obligations during the period of receipt:<\/h3>

    The self-employed person must remain available for training and job orientation activities, as well as to accept suitable job offers.<\/p>

    Report any changes in their situation that may affect their entitlement to the benefit, such as earning income from other activities.<\/p>

    At Asesor\u00eda Orihuela Costa we help you to comply with all the requirements in case of cessation of self-employed activity, both permanent and temporary.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    The cessation of self-employed activity does not necessarily refer to the permanent closure of a business, it sometimes refers to an interruption for various reasons. Below, we analyse the concept of cessation of self-employed activity and its implications. What is the cessation of activity for the self-employed? The cessation of activity for the self-employed is […]<\/p>\n","protected":false},"author":2,"featured_media":27503,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","inline_featured_image":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-27711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"featured_image_src":{"landsacpe":["https:\/\/www.asesoriaorihuelacosta.com\/wp-content\/uploads\/2024\/07\/ai-generated-7935630_640.jpg",640,427,false],"list":["https:\/\/www.asesoriaorihuelacosta.com\/wp-content\/uploads\/2024\/07\/ai-generated-7935630_640-463x348.jpg",463,348,true],"medium":["https:\/\/www.asesoriaorihuelacosta.com\/wp-content\/uploads\/2024\/07\/ai-generated-7935630_640-300x200.jpg",300,200,true],"full":["https:\/\/www.asesoriaorihuelacosta.com\/wp-content\/uploads\/2024\/07\/ai-generated-7935630_640.jpg",640,427,false]},"yoast_head":"\nThe concept of cessation of activity in self-employed persons - Asesor\u00eda Orihuela Costa<\/title>\n<meta name=\"description\" content=\"Find out what is the cessation of self-employed activity and its legal and administrative implications. 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