On September 9, the media published a story that spoke of three Supreme Court judgments, yes, yes, not one or two, but three judgments have been necessary for Social Security to have changed its criteria regarding the amount of the fees paid by the so-called self-employed companies.
The corporate self-employed are those self-employed workers who have formed a commercial company, generally a Limited Company, to operate with it in their business.
As I have already said, three decisions of the Supreme Court have been necessary for these entrepreneurs, people who generate employment and contribute significantly to the Spanish economy, to benefit from the so-called Flat Rate.
The Flat Rate for Self-Employed, as you already know, is a “bonus” whereby the self-employed get a reduction in the amounts they have to pay during their first year of Social Security contributions.
What happens is that until now this benefit, very important for anyone starting their journey in this hypercompetitive market in which we have had to move, was prohibited for those who had a company.
To achieve this benefit, it has been necessary to go to court, reach the highest court and after three sentences, one in 2019 and two in this sinister 2020, said court has resolved that “the application of the benefits cannot be prevented in the contribution provided for in article 31 of Law 20/2007, of the Statute of Self-Employed Work ”.
What is surprising is that in a country like this, where industrialization is conspicuous by its absence, entrepreneurs are burdened rather than stimulated as is the case in other European countries.
I know I’ve said it before but I’m still going to repeat it, after this long fight this tax benefit is limited to the first year of activity of the self-employed, from then on they go to the “higher” level because from then on everyone Spanish freelancers are obliged to pay a predetermined fee that exceeds € 200.00 in the best of cases.
It is the same as the self-employed worker invoices or not, our magnanimous politicians do not worry about anything, the important thing is that you pay, so they can manage the money you give them and act as what they are, a gang of little tyrants.
And I make this emphatic statement because, compared to this fixed-gear tax method, the rest of the European countries use more rational systems:
Great Britain.- Minimum € 15.00 from there you pay in relation to billing, for example, billing € 2,000.00 per month is € 200.00 per month.
Holland.- € 50.00 per year.
Ireland.- 5% of net income.
Germany.- 150 euros provided that more than 1,700 euros a month are entered. Otherwise, it is not paid.
I could continue mentioning countries, but I am not going to do it, although I do want to close with our neighbor Portugal where no fee is paid since a percentage is paid on the billing.
All of them are more favorable for the self-employed than the Spanish system but we are here and we are obliged to comply with the law, although, as I see it, it is important to know in what reality we have had to live.
Contact us, we cannot help you reduce the quota of freelancers but if in other areas, that is our job, this way, your company will suffer less and you will be able to move on and see your future life with a little more peace of mind.
At SEL-DEK we work with people and companies contributing our experience so that you have an ally to collaborate with you and help you live a little better every day.
We are independent professionals and we work every day with one goal, to improve the economic situation of the people and companies that ask us for help.