These are the new self-employed contributions for next year

And what does that mean? Well, companies and the self-employed will have the obligation to present an annual income forecast. The same will happen with new self-employed workers who register with RETA.

Self-employed quotas for 2023

The new contribution system establishes 15 sections of contribution and quotas ranging from 230 to 500 euros. This fee will decrease in the sections with lower profits, while, in the higher ones, it will increase each year.

To obtain this income, which places the self-employed worker in one of the sections, it is necessary to account for all the income and subtract from it the expenses derived from the activity. Seven percent of expenses can be deducted from this figure (three percent for corporate self-employed persons) and this will be the amount that will determine in which section it is included.

Within each section there is a minimum base and another maximum. The self-employed person can choose any of the purchases among them, and Social Security contributions will be applied to this amount. They currently add up to 30.6 percent of the chosen contribution base and are as follows:

• For common contingencies, 28.3 percent of the contribution base.

• For professional contingencies, 1.3 percent of the contribution base.

• For cessation of activity, 0.9 percent of the contribution base.

• For professional training, 0.1 percent of the contribution base.

Possibility to change the section six times during the same year

The obligation to present an annual profit forecast has caused a lot of uncertainty and some headaches. And it is not surprising, since it is impossible to determine with certainty what will happen next year.

For this reason, the Government will allow the contribution sections to be changed up to six times in the same year. Thus, if the company is doing better or worse than the initial forecast, it will be able to adapt to the real situation.

This will mean that the self-employed will have to return or claim the fees in the event that the final net returns are below (or above) what was indicated in the forecasts throughout the year.

The changes in the contribution base take effect from March 1, May 1, July 1, September 1, November 1 and January 1 of the following year, with respect to the changes requested during the two months immediately preceding these dates.

Minimum and maximum bases for the self-employed for 2023

In 2023, the first year of implementation of the measure, the following minimum and maximum bases will be recognized for each of the 15 self-employed income brackets:

• For section 1 (670 euros per month or less), the minimum base will be 751.63 euros per month and the maximum base will be 849.66 euros per month.

• For section 2 (between 671 and 900 euros per month) the minimum base will be 849.67 euros per month and the maximum base 900 euros per month.

• For section 3 (between 900.01 and 1,166.69 euros per month) the minimum base will be 898.69 euros per month and the maximum base will be 1,166.70 euros per month.

• For section 4 (between 1,166.70 and 1,300 euros per month) the minimum base will be 950.98 euros per month and the maximum base will be 1,300 euros per month.

• For section 5 (between 1,300.01 and 1,500 euros per month) the minimum base will be 960.78 euros per month and the maximum base will be 1,500 euros per month.

• For section 6 (between 1,500.01 and 1,700 euros per month) the minimum base will be 960.78 euros per month and the maximum base will be 1,700 euros per month.

• For section 7 (between 1,700.01 and 1,850 euros per month) the minimum base will be 1,013.07 euros per month and the maximum base will be 1,850 euros per month.

• For section 8 (between 1,850.01 and 2,030 euros per month) the minimum base will be 1,029.41 euros per month and the maximum base will be 2,030 euros per month.

• For section 9 (between 2,030.01 and 2,330 euros per month) the minimum base will be 1,045.75 euros per month and the maximum base will be 2,330 euros per month.

• For section 10 (between 2,330.01 and 2,760 euros per month) the minimum base will be 1,078.43 euros per month and the maximum base will be 2,760 euros per month.

• For section 11 (between 2,760.01 and 3,190 euros per month) the minimum base will be 1,143.79 euros per month and the maximum base will be 3,190 euros per month.

• For section 12 (between 3,190.01 and 3,620 euros per month) the minimum base will be 1,209.15 euros per month and the maximum base will be 3,620 euros per month.

• For section 13 (between 3,620.01 and 4,050 euros per month) the minimum base will be 1,274.51 euros per month and the maximum base 4,050 euros per month.

• For section 14 (between 4,050.01 and 6,000 euros per month) the minimum base will be 1,372.55 euros per month and the maximum base will be 4,139.40 euros per month.

• For section 15 (yields above 6,000 euros per month), the minimum base will be 1,633.99 euros per month and the maximum base will be 4,139.40 euros per month.

It should be borne in mind that these sections are transitory until 2032. From that year onwards, the self-employed will contribute based on their real returns.

If you need more information, do not hesitate to consult DATA and SERVICES.