Social Security Contributions - Self Employed
Apr 12th 2011, 7:55 pm
#1
Just Joined
Thread Starter
Joined: Mar 2011
Posts: 13
Social Security Contributions - Self Employed
Hi there,
Hopefully somebody out there is either self employed or an accountant. I am really struggling to understand social security contributions for the self employed.
It looks to me as though there is a choice depending on what benefits you want, i.e. compulsory at approx 25.4% or extended at 32%. But 25.4% or 32% of what? Surely this can't be of your earned income.
I am moving to the Algarve at Easter and my job will be set up as self employed under "contract for services". Basically I will be looking after clients for a company, no outlay for equipment etc with a basic "draw" per month.
So lets say I earn 60,000 euros spread evenly throught the year, which is 5,000 euros per month, gross, are they saying it will be 25.4% or 32% of that each month, on top of personal income tax
Hopefully somebody out there is either self employed or an accountant. I am really struggling to understand social security contributions for the self employed.
It looks to me as though there is a choice depending on what benefits you want, i.e. compulsory at approx 25.4% or extended at 32%. But 25.4% or 32% of what? Surely this can't be of your earned income.
I am moving to the Algarve at Easter and my job will be set up as self employed under "contract for services". Basically I will be looking after clients for a company, no outlay for equipment etc with a basic "draw" per month.
So lets say I earn 60,000 euros spread evenly throught the year, which is 5,000 euros per month, gross, are they saying it will be 25.4% or 32% of that each month, on top of personal income tax
Apr 13th 2011, 4:08 pm
#2
Just Joined
Joined: Apr 2011
Posts: 1
Re: Social Security Contributions - Self Employed
Hi there,
Hopefully somebody out there is either self employed or an accountant. I am really struggling to understand social security contributions for the self employed.
It looks to me as though there is a choice depending on what benefits you want, i.e. compulsory at approx 25.4% or extended at 32%. But 25.4% or 32% of what? Surely this can't be of your earned income.
I am moving to the Algarve at Easter and my job will be set up as self employed under "contract for services". Basically I will be looking after clients for a company, no outlay for equipment etc with a basic "draw" per month.
So lets say I earn 60,000 euros spread evenly throught the year, which is 5,000 euros per month, gross, are they saying it will be 25.4% or 32% of that each month, on top of personal income tax
Hopefully somebody out there is either self employed or an accountant. I am really struggling to understand social security contributions for the self employed.
It looks to me as though there is a choice depending on what benefits you want, i.e. compulsory at approx 25.4% or extended at 32%. But 25.4% or 32% of what? Surely this can't be of your earned income.
I am moving to the Algarve at Easter and my job will be set up as self employed under "contract for services". Basically I will be looking after clients for a company, no outlay for equipment etc with a basic "draw" per month.
So lets say I earn 60,000 euros spread evenly throught the year, which is 5,000 euros per month, gross, are they saying it will be 25.4% or 32% of that each month, on top of personal income tax
Get in touch with me and we can chat and make things clearer.
Apr 13th 2011, 6:27 pm
#3
Forum Regular
Joined: Aug 2008
Location: Silves
Posts: 82
Re: Social Security Contributions - Self Employed
I was at a meeting at my account a couple of weeks ago and it is changing. Everyone used to pay 160 euros a month but now it is based on earnings.
If you are expecting to earn less than 10,000 euros in your first year you can apply for a year without paying social security so you can have a break.
here is a link to the new social security earning brackets so you know what you need to pay each month:
http://livinginthesun.info/portugal/...-ready-for-it/
kind regards
sam
X
If you are expecting to earn less than 10,000 euros in your first year you can apply for a year without paying social security so you can have a break.
here is a link to the new social security earning brackets so you know what you need to pay each month:
http://livinginthesun.info/portugal/...-ready-for-it/
kind regards
sam
X
Apr 17th 2011, 2:24 pm
#4
BE Forum Addict
Joined: Feb 2008
Location: Praia da Luz
Posts: 1,509
Re: Social Security Contributions - Self Employed
I hope it does change to being based on income as ATM it's ridiculous! Who is going to go on green receipts knowing they will have to shell out €186 a month regardless of how much is earned/what your expenses are. It's appalling. The Uk system is far better paying £32 a month (or however much it currently is) then paying the balance when earnings have been calculated.
Apr 17th 2011, 3:35 pm
#5
Forum Regular
Joined: Aug 2008
Location: Silves
Posts: 82
Re: Social Security Contributions - Self Employed
I hope it does change to being based on income as ATM it's ridiculous! Who is going to go on green receipts knowing they will have to shell out €186 a month regardless of how much is earned/what your expenses are. It's appalling. The Uk system is far better paying £32 a month (or however much it currently is) then paying the balance when earnings have been calculated.
I think it is in june/july and then we will be all using the online system instead which will save on your admin.
