Spain’s tiered social security contribution system for self-employed workers has been in effect since 2023. Under this method, the monthly fee for freelancers depends on their annual earnings. In essence, their net income determines the contribution base. However, some self-employed workers have voiced complaints about the tax burden in the media.
Several months ago, the program ‘La Linterna’ on Cadena COPE featured David, a 75-year-old self-employed plumber. Despite spending his entire career in the trade, his pension is insufficient to cover his needs. In fact, he explains that investing during his working years has allowed him to sustain his retirement. Even after officially retiring, he continues to work as a self-employed plumber.
“My wife and I both worked here. My wife receives a pension of €1,000, and I get about €500—half of that. If we hadn’t invested, it would be insufficient,” the self-employed worker recounts.
According to data shared by Men’s Health, 41% of self-employed workers in Spain earn less than €27,480 annually. That amounts to €2,290 per month before paying income tax, other taxes, and social security contributions. Additionally, self-employed workers must cover regular expenses such as energy, housing, transportation, and food, leaving little room for saving or investing.
David has been a self-employed plumber since the age of 24, building his own business. Currently, it is estimated that self-employed workers dedicate 54.4% of their gross income to income tax, VAT, and social security contributions.
