Unlike salaried employees, one of the important decisions that self-employed workers in Spain have to take is the choice of their contributions base.
Clearly, nobody likes to pay, but the benefits will come, or at least that is what we hope, once we retire.
When we advise our clients, we always lay out the different situations that can arise, and the calculations, in order to know what may happen, but have you ever thought about what would happen in the case of a permanent incapacity to work throughout your whole working life? The uncertainty is difficult to measure.
But let’s make things easy for ourselves. Any self-employed worker, planning for his future, can change the social security contributions base -in the Special System for Self-employed Workers (RETA)- and the quota to be paid, within the limits permitted based on his age, twice a year (with the purpose of increasing or decreasing the base for the calculation of the retirement pension or temporary incapacity allowance). The application may be presented before 1st May, with effects as from the following 1st July, or before 1st November, with effects as from 1st January of the following year.
Nevertheless, bear in mind that if you were already 48 or 49 years old by 1st January 2011 and your contributions base in the RETA is less than €1,665.90 per month, you will not be able to choose a base higher than €1,682.70 unless you exercise your option to increase the contributions base before 30th June 2011, which would come into effect as from 1st July of this very year.
If this is your case and you would like to change your situation, ACT QUICKLY. You can contact us at .