Updated 28.12.2018 now that the relevant Royal Decree has been published, re the ´bad news´ section below.
First the good news.
Several Autonomous Regions have amplified the Tarifa Plana, first stage of 50 euros/month, increased to 12 month by the national government earlier this year.
First to do so was Murcia, announcing a Tarifa Cero for new Autonomos under 30. They don´t have to pay anything during the first 12 months, and after that, can sign up for the regular Tarifa Plana.
Followed by Madrid, amplifying the first stage of the Tarifa Plana to 24 months instead of 12.
And now the Canaries government has announced the same and there it´s available to those already registered, not just to those registering after the regional law has come into force.
Andalucia Update August 2019 HERE
And there´s the nationwide Tarifa Plana Rural for those living in villages with up to 5.000 inhabitants.
And now for the bad news.
It appears that the long awaited reform of the Autonomo system, relating contributions to income, is not to take place as of 1.1.2019, but hopefully will be discussed further and implemented later in 2019, or 2020.
The government and the major associations for Autonomos have reached an agreement, yesterday November 14th 2018, on the cuota for Autonomos for 2019. Published in a ´pre-agreement´ that still has to be ratified by all involved (done 28.12.2018), and then made into Royal Decree, as an advance on the General Budget negotiations, which will continue in 2019.
- Practically all Autonomos will pay more, even those on the Tarifa Plana. Tarifa Plana will go up to 60 euros if you pay based on the minimum regulatory base, otherwise (e.g. if you are over 47 with less than 5 years working history in Spain), a discount of 80% will be applied over the higher regulatory base. Regular Autonomo contributions with approx. 12 to 14 euros/month. To 283,30 euros for those on the minimum tariff. This increase is caused by on the one side, an increased ´base reguladora minima´ and the fact that all Autonomos will now pay for the, previously voluntary, ´professional contingencies´, ´professional formation´ and ´unemployment benefits´. Those on the Tarifa Plana do not pay for the ´cese de actividad´ nor ´formación´ during the first 12 months.
- Those already on the Tarifa Plana, based on the minimum tariff, and still within the first 12 months of maximum discount, will start to pay the 60 euros as of January 1st, unless they opted to include the extra insurance for ´cese de actividad´as in that case they will continue to do so, and will also have to pay for ´professional formation´0,1%.
- Cuota for Autonomos Societarios will be 364,22 minimum.
- For those Autonomos with income under minimum wage, special provisions will be made, still unspecified so far.
- Autonomos Agrarios will still be entitled to the Tarifa Plana of 50 euros.
- In return, all Autonomos will be entitled to unemployment benefits and for 24 months max instead of previously only 12 and access will be made easier, as presently, of all applicants, only 30% was granted access.
- If you fall ill, you don´t have to pay the contribution as of 3rd month of ´baja´ until day of ´alta´. If you were already on sickleave for 60 days on the day the new law came into effect, and you were paying for the extra insurance ´cese de actividad´, you will be able to get the bonification of the Autonomo contributions as of the 1st of January. If you didn’t have that insurance contracted, you will have to continue paying for 60 days in 2019, before you’ll be entitled to the bonification.
- If you suffer an accident at work, or get sick because of work related circumstances sick pay will start as of the day following the accident.
- Access to continuous formation.
- In 2020, 2021 and 2022 the social security contributions will go up with 0,3% each year.
- New date on the tax calendar for Autonomos who provide services as intermediary for holiday rentals is the 31st of January 2019 when the new Modelo 179 has to be filed for rentals in 2018, and the month following each trimestre for rentals in 2019.
- Presentation of Modelo 347 will be in the same window as this year, in February.
- As of 2019 maternity pay will be paid out without any retentions by either the Social Security, or the Tax Office re IRPF income tax. Those that have received it for children born in 2014 and following years, can claim IRPF retentions back from the tax office.
- Female Autonomos who have given birth or have adopted a child are entitled to 12 months of the Tarifa Plana of 6o euros/month if they resume their activities as Autonoma within 24 months after they stopped (cese) or when they resume their activities straight after their maternity leave, without having arranged for a ´baja por cese´. Published March 2019, effective retroactively as of 1.1.2019.
- Several tax deductions that were approved for 2018, were not possible to apply on last year´s RENTA, like the pro rata costs for utilities for those working from home and the costs for eating out or pernoctations while on business trips. Hopefully this year they will be, best keep in close contact with your gestor about this.
- ´False Autonomos´ will be sanctioned harsher, sanctions between 3.126 euros and 10.000 euros for the employer, per employee falsely registered as Autonomo, while having been registered as regular employee of the business before.
As usual, CAB Spain will keep members informed of any developments as more ´Autonomo-news´ is expected in the course of 2019, when the General Budget will be negotiated and ultimately, approved.
Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.
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