In recent years, Spain has introduced several changes to the tax and social security system for self-employed individuals (known as autónomos). These reforms aim to make self-employment more accessible and financially viable, encouraging more people to embrace this work model. Below are the key benefits currently available to autónomos:
Reduced Initial Social Security Contributions
Newly registered autónomos can take advantage of a significantly reduced social security rate. For the first 12 months, the monthly contribution is fixed at just €80. This reduced rate provides financial relief during the critical initial period of setting up a business.
Tax Deductions on Work-Related Expenses
1. Fuel Costs: Autónomos can claim a refund of up to 50% on petrol expenses, provided these are directly related to their business activities.
2. Home Office Utilities: For those who work from home, up to 20% of electricity, gas, and water bills can be deducted as business expenses. This is a significant benefit for remote workers and freelancers who operate from home offices.
Flexible Penalty System
Freelancers who fail to pay their social security contributions on time now face reduced penalties. This change provides a safety net for those experiencing temporary financial difficulties.
Meal and Accommodation Allowances
Autónomos working away from home can claim up to €26.67 per day for food expenses. If an overnight stay is required, this allowance increases to €53.34 per day to cover both meals and accommodation. These allowances help offset the costs of business travel.
Professional Support for Financial Management
Many autónomos choose to hire accountants to manage their financial obligations. For an average cost of around €60 per month, accountants handle the filing of quarterly and annual tax returns, including IVA (VAT) returns. While this fee typically covers basic services, additional charges may apply for specific filings.
These updates demonstrate Spain’s commitment to supporting self-employed professionals, making the autónomo status more appealing and financially manageable. Whether you’re starting a freelance career or establishing a small business, these benefits offer a strong foundation for success.