Mikellama

Hi all,

I am looking for some advice regarding Social Security Contributions for self employed people in Spain. I have read the Official Spanish web site which makes the statement;

“Self-employed: The contribution paid by a self-employed person is 29,80% on earnings from 755,40 euros per month to the upper limit of 2.731,50 euros per month. Self-employed is one of the Special Schemes of Social Security (see below nº 2). Should the self-employed do not wish to have a cover for short-term incapacity benefit the contribution would be 26.5%. Otherwise it shall be 29,803%. Self-employed of 50 years old or above may opt for an upper earnings limit under the law of just 1.416,00 euros per month.”

My questions are;

a) If a married couple both aged 53 years set up a business on a self employed basis and do not earn over 755,40 euros per month, how are the Social Security Charges calculated? Is there a minimum Social Security Contribution charge that is made regardless of income?

b) If one partner in a marriage is registered as self employed, do their Social Security Contributions extend to provide cover for the other partner (as in France)?

c) If you pay Social Security Contributions as a self employed person do you still need to take out a top up health cover insurance policy?

Any advice appreciated.

Rgds, Mike L

Mikellama

Sorry have another quick one related to the above questions.

Would a UK military pension which is taxed at source in the UK be classed as part of any “Earnings” under the above statement as it is definitely “income” but not sure it could be classed as “earnings”.

Rgds, Mike L

EsuriJohn

Hi Mike,

Your boats come in! Under the dual taxation agreement between UK and Spain you cannot take your Government Pension (Military) out of UK untaxed so it is totally disregarded by the Hacienda. You should not include it in any tax forms (some area offices like to add it to your earnings to bump you into a higher tax band although they do not tax the pension a second time) to avoid mistakes that have to be corrected later.

There is one better deal you could have done and that is retire to Cyprus which along with Australia is recognised by HMRC as a place you can take your GP untaxed. IF you have no other income except your State Pension then you can elect to be taxed at a flat 5%. This beats the Spanish deal but it is all a matter of choice.

Regards,

John.

EsuriJohn

There has been a long discussion on this recently and I think "elgestor" gave chapter and verse on the Social Payments. Do a search on Social security or elgestor.

Mikellama

Hi John & Kath,

Thanks for the info and the link to previous thread, very helpful indeed.
Will now be doing some research into finding an English speaking Gestor in the area we are going to settle in (Galicia) as my wife also has 2 medical pensions that she receives and it may be beneficial if just I register as self employed and get her covered that way.

Rgds, Mike L