Autonomous: ATA votes affirmatively on Escrivá’s new quota plan for the self-employed
In the past, the self-employed paid monthly contributions at rates they chose, based on their own assessment of income. This stood in contrast to wage earners, where payroll size and tax withholdings shaped the contributions. A notable pattern emerged: many freelancers consistently selected the minimum quota of 294 euros. That choice often reflected the belief that higher payments would not translate into proportionate future benefits, or simply a preference to retain available cash for other needs. Beginning in 2023, however, each freelancer’s payment will be determined by the net returns from their activities, effectively tying contributions to real earnings and the corresponding benefits account they accumulate over the year.
How will net returns be calculated?
The guiding principle of the reform is straightforward: add income, subtract expenses, and apply the resulting figure to a defined contributions table. The Social Security authority provides a scale that is revisited annually within the General Government Budgets. Depending on where a self-employed person lands within this scale, payments will rise or fall. Organizations representing freelancers emphasize that while income and expenses are tallied on an annual basis, the payment amount is settled monthly. For example, if the monthly net income from activity falls below a threshold of 670 euros, the corresponding annualized calculation would require a payment of 230 euros per month in 2023.
The heart of the new system lies in deductible expenses. Net income becomes a more meaningful measure when expenses are clearly accounted for. In essence, earnings from economic activity—what the self-employed receive as payment for services and goods—are offset by legitimate business costs before the monthly contribution is determined.
What expenses are deductible?
Under the reform, expenses already accepted by the Treasury count as deductible, provided they meet three criteria: they must relate directly to the economic activity, be defensible in terms of business purpose, and be properly registered in accounting records. Classic deductible items include purchases of materials or raw inputs, salaries for workers, rent for premises or equipment, professional services, financial charges, and depreciation of assets, among others.
When a self-employed person reports deductible income and expenses for the year, an additional 7 percent cap is applied to these expenses as non-deductible without requiring separate credit. This supplementary adjustment aims to smooth out spending and, in turn, lower the apparent wage obligation. The government uses this mechanism as part of the broader effort to secure consensus with social partners in the reform package.
Can the fee be changed?
The quota selection is officially voluntary, with estimates updated by the self-employed over the course of the fiscal year. If earnings end up higher than expected, the Treasury can adjust to collect the appropriate additional contributions. Conversely, if actual income proves lower than the estimate, the public treasury may issue a refund for the difference at year’s end. The self-employed worker can adjust payments up to six times a year to reflect the evolving trajectory of their business.