Autonomo – The new rules and how they will affect the self-employed.

Just two weeks ago, the new law on self-employed workers was unanimously approved . The new regulations will bring improvements in various areas and aspects, however, there are also very concrete measures that will affect “the pockets” of autonomo workers. 

This article from Cincodias, sets out to analyse the new rules and determine what impact they will have on self employed professionals:

• The professional activities carried out in the home will have an allowable tax deduction of 30% for the main utilities such as water, electricity and telephone. The percentage is calculated on the area of the house is utilised for work. You can calculate exactly what deduction corresponds to you here .
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• Similarly, the self-employed can deduct up to 26 euros a day in meals , provided that the amount is paid by electronic means.  Full article here………..
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• Extension of the flat rate of 50 euros per month, from six months to one year . New applicants who register as self-employed to set up a business, will pay a fee of 50.92 euros per month for a year. ( previously 6 months)
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• Self-employed workers will not lose out when they hire employees. Permanent workers contracts can be subsidized 100% of the social contribution.
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• Self-employed women who are mothers will pay a fee of 50 euros for a year , once they join the scheme after their corresponding maternity leave.
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• With the new law, when a self-employed person reaches the age of retirement, but is working and has employees, he/she can reconcile the retirement pension with his/her salary.
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• Self-employed workers who indefinitely hire a family member may also qualify for 100% of their social contributions, provided that they maintain employment for six months and that during the previous year, they did not dismissed that person.
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• The annual tax of the autonomous professionals will be fixed in the general budgets of the state . That is, the contribution bases are no longer linked to the minimum wage and if it rises, the taxes of self-employed workers would not have to.
• We understand that there will, however, be increased rates of monthly autonomo contributions. Further information on new rates will follow

 With thanks to Moises of Vera Cruyanes for this information and if you would like any guidance on this or any other fiscal advice, please get in touch with them here