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Do You Know The Different Types Of Self-employed In Spain?


Do You Know The Different Types Of Self-employed In Spain?

You may be thinking of becoming self-employed in Spain. However, do you know the different types of self-employed in Spain? Indeed you are not very clear which modality to take advantage of and how many types of freelancers there are.

Although they are all very similar and have to pay Social Security in a very similar way, there are some crucial differences. Next, we explain the six types of self-employed that exist in Spain:

1. Self-Employed Workers

You will be a self-employed worker if you have your own small business that you carry out regularly, and that is in your name. 

You can find the self-employed types listed for business activities in this list of the Economic Activities Tax. On many occasions, these freelancers are taxed by modules. 

In this modality, we will find these different groups:

1. Taxi drivers, transporters, or merchants.

2. Hoteliers, workshops, hairdressers.

3. Masons, repairers and maintainers.

4. Self-employed dedicated to artistic, sports, or bullfighting activities.

2. Freelance Professionals

You will be a freelance professional if you dedicate yourself to liberal professions included in the list of professional activities of the Economic Activities Tax. 

Within this group, there are registered professionals (doctors, lawyers, engineers, architects, etc.) and others who are not usually (programmers, designers, teachers, writers, publicists, etc.).

You should know that registered professionals can choose not to contribute to the Special Regime for Self-Employed Workers but to contribute through their professional mutuals.

3. Self-Employed Entrepreneurs

They are the corporate self-employed. Company administrators and worker-members who meet specific requirements must register in the self-employed regime, as they cannot register as employed workers by contributing to the General Social Security Regime.

4. Economically dependent self-employed workers (TRADE or TAED)

You will be an economically dependent self-employed worker if you are self-employed and carry out economic or professional activity on a regular and direct basis for a single client on whom you depend economically. You have to receive at least 75% of your income.

This dependence gives rise to greater protection of the norm towards TRADE, granting them various rights that the rest of the self-employed do not have — for example, the regulation of breaks, annual leave, compensation for the contract termination, etc.

What requirements must a TRADE meet?

1. Carry out an economic or professional activity for a client from whom he receives at least 75% of his income.

2. Not having workers in charge, nor subcontracting all or part of the work they do.

3. Not being the owner of an establishment, premises, or office open to the public.

4. You cannot perform the same work as the workers of the company that hires you as TRADE.

5. You must have your infrastructure and work materials.

6. You must work under your organizational criteria and assume the risk and fortune of the activity you develop.

7. You must reflect the relationship with your client in a particular contract registered with the SEPE in Spain.

Here’s an example for a TRADE:

Imagine a computer scientist who has a maintenance contract for the computer systems of a hotel. He is a self-employed worker who has his own material means to carry out his work and performs his tasks (problem-solving, periodic checks, tests) with total autonomy to guarantee the hotel’s computer systems’ correct functioning. 

He receives most of his income from the hotel, to which he dedicates practically his entire working day. Still, he can also do other specific jobs for other companies or individuals.

In many forums and articles, you will find that TRADE is a false self-employed (“falso autónomo”) when they are really two different figures. One is entirely legal (TRADE), and another is based on the law’s fraud since those who should be workers are forced to become self-employed. The company saves Social Security costs by not having to hire them as workers.

Example of false self-employed (“falso autónomo” ):

With an example of false self-employed, it will be much more precise. We are going to continue using the example of our computer scientist …

When would our computer scientist be a fake freelancer?

Even if his job and his objective were the same (to guarantee the correct functioning of the hotel’s computer systems), in this case, he would use the hotel’s material means. He would be subject to fixed entry and exit times like the rest of the workers and under orders from a hotel manager who would establish the work to be carried out. 

In other words, our IT specialist should be hired in the hotel staff as another employee, registered in the General Scheme, and not in the Self-Employed Scheme.

5. Agrarian Self-employed

This self-employed must meet the following requirements:

1. Have the ownership of an agricultural or livestock exploitation and that at least half of its income comes from said exploitation.

2. Although he can hire staff, the self-employed must personally and directly deal with the farm needs’ tasks.

3. The net operating income cannot exceed 75% of the maximum contribution base of the General Scheme.

Since 2008, these self-employed have a special regime, the “Special System for Self-Employed Agrarian Workers”, known as SETA.

6. Other Self-Employed

In this mixed bag, we can find:

– the self-employed collaborators (family members up to the 2nd degree and spouse),

– worker members of associated work cooperatives who choose to quote in the RETA,

– community members or partners of the community of property and irregular civil companies,

– industrial partners of companies regular collective and limited partnerships, etc.

Are you a “falso autónomo” (“false” self-employed)?

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