Alicante Freelancers and the New Self-Employment Quotas: What Changes Mean

More than seven out of ten freelancers in Alicante will see changes to their Social Security payments under the new contribution system agreed by the government with the major industry bodies. The plan introduces 15 distinct contribution categories designed to reflect actual earnings, with a three-year transitional period to reach the final rates set by the social partners.

The resulting contract makes sense when viewed through the calculations provided by UPTA. For anyone earning a net income below 1,300 euros per month, the changes matter particularly for subcategories. Compared with the current minimum payment of 294 euros, those earning under 670 euros per month will contribute 230 euros in 2023, a figure that drops to 225 euros in 2024 and stabilizes at 200 euros in 2025. Put simply, this equates to potential annual savings of around 1,127 euros for those in this band.

Meanwhile, contributions for those in the 1,300 to 1,700 euro band are expected to stay stable, with only those surpassing this bracket facing higher charges, capping at 590 euros per month in 2025 for those reporting monthly returns above 6,000 euros.

New self-employment quotas.

Based on UPTA data, up to 65.7% of self-employed individuals in the Community may see a reduced quota because their monthly earnings do not reach 1,300 euros. Another 7% are expected to keep their current quota, and about 27.3% could face higher payments. In practical terms, this means many freelancers in Alicante will experience lower monthly charges while a smaller portion may pay more.

When translated to the state level, the impact varies. Roughly 91,000 freelancers in Alicante will experience changes, with around 10,000 continuing on the same fee and about 38,000 seeing higher payouts.

The changes come at a moment when the province’s self-employed population has reached a historic high. In June, 139,151 individuals were registered under the special Social Security regime, roughly 7,000 more than the same month in 2019 before the pandemic.

State breaks historic record for self-employed for the second consecutive year

Sector-wise, commerce remains the dominant field for Alicante’s freelancers, with 35,197 participants. The construction-related trades—plumbers, electricians and similar roles—account for 19,201, followed by hospitality with 16,352. Liberal or technical professions include 11,457, and manufacturing adds 10,044 to the mix.

Of the total regime participants in the province, 81,745 are natural persons, while 57,406 operate as self-employed companies, cooperatives, or community-owned entities.

historical agreement

The three signatories—ATA, UPTA, and UATAE—characterized the recent agreement as a relief for workers with lower income, aimed at strengthening protection and contributing to higher pensions in the future. In the Valencia Community, for example, about 87.6% of self-employed individuals contribute to the minimum base, which raises questions about pensions at low income levels.

For those with modest earnings, the arrangement could save around 100 euros per month, offering meaningful support at these income levels. The general secretary of UPTA-PV highlighted the flexibility of the base, noting that adjustments can be made every two months depending on business performance. Bonuses are included for working mothers, childcare, and care for seriously ill relatives. Additionally, deductions on expenses that are hard to quantify, potentially reducing net income by as much as 7%, are allowed.

However, not all organizations welcome the deal. The head of FaesCV criticized what was described as a fixed price for self-employed individuals who may start activities that could amount to pseudo-self-employment.

Average income of 10,140 euros

Valencia’s self-employed population reported an average annual income of 10,438 euros, according to the latest figures from the Tax Office’s Economic Activity data, based on 2019 figures. Those filing under direct estimation, who keep books and declare based on actual income, earned an average of 13,871 euros. In contrast, users on the simplified module system averaged 11,059 euros, and those under the agricultural regime earned just 1,874 euros annually. In comparison with the national average, Valencia’s self-employed income remains modest by about 1,488 euros.