Law 6/2017 on Self-Employment
The new Law on self-employment reforms entered into force in October 2017, with the exception of some articles whose entry into force was postponed until 2018. The reform introduces the following main changes:
- Reduction of surcharges applied to Social Security debts for late payment
- Reimbursement to self-employed workers who contribute on a multi-activity basis of the excess of contributions will be made ex officio, and not at the request of the self-employed worker.
- The collection period of the flat rate contribution for a fixed amount of 50 euros per month or 80% reduction period is extended from six to twelve months for those self-employed workers registered for the first time with the Special Self-employed Workers Regime (RETA). The reduced contributions can be extended up to 24 months.
- A 100% contribution discount applies for self-employed workers who have to take care of minors or dependents and for the indefinite contracting of family members.
- 100% of the self-employed workers' contribution will be deducted during maternity, adoption, foster care, paternity, high risk pregnancy or risk during breastfeeding leave, without the need for the self-employed worker to be replaced by a temporary worker
- Self-employed workers may be registered and discharged up to three times in the same calendar year by paying for days actually worked from the effective date of registration up to the effective date of discharge and not for a full calendar month, as was the case until now.
- Deductibility in the Income Tax of supply expenses (water, gas, internet, electricity, etc.) is introduced for the cases when the taxpayer partially uses their habitual residence to carry out economic activities. A deduction of 30% will be applied to those expenses that correspond to the percentage of square metres of the house used for the activity. Health insurance premiums that cover the taxpayer, their spouse and children under the age of 25 living with them will be deductible up to a maximum limit of 500 euros per person or 1,500 euros for each of them with disabilities.