What are the changes in the RETA contribution system?
In 2025, a new contribution model for self-employed workers in Spain will come into force. This system will adjust contributions according to net income and will replace the free choice of contribution base with a progressive scheme.
The goal is to achieve greater fairness. Self-employed workers with lower incomes will pay less, while those with higher profits will contribute more to the system.
Objectives and reasons behind the reform
The current system allows self-employed workers to adjust their contribution base without a direct reference to their actual income. This creates distortions in social protection and makes the system harder to sustain.
The reform seeks to:
- Link contributions to actual profits.
- Ensure better coverage for pensions and benefits.
- Reduce the gap with respect to the general regime.
Main differences from previous years
The most significant change is the replacement of the voluntary model by a net income-based system. The main changes include:
- New contribution brackets based on earnings.
- Possibility to modify the base up to six times a year.
- Annual adjustment according to declared income.
- Introduction of allowances and adjustments for specific groups.
How will these changes affect self-employed workers?
The new contributions mean a change in the way self-employed workers manage their finances. It will be crucial to plan income and expenses to avoid unexpected adjustments.
The impact will vary depending on the income level. Some self-employed workers will pay less, while others will have to make higher contributions.
Impact on financial planning
The net income-based contribution model requires self-employed workers to forecast their income more accurately. In addition, the annual adjustment may result in additional payments if income exceeds the estimate.
Aspects to consider in planning:
- Periodic income review to adjust the base.
- Setting aside part of profits for future adjustments.
- Tax optimisation to reduce unnecessary burdens.
Impact on different self-employed profiles
The effects of the new system will depend on the income level and the situation of each self-employed worker:
- Low income: will benefit from reduced rates and possible allowances.
- Medium income: will face moderate changes depending on their bracket.
- High income: will see an increase in their contributions, adjusted to their economic capacity.
- New self-employed workers: will have access to reduced rates in their first months of activity.
How the new contribution system works
The new contributions will be structured in progressive brackets. Each self-employed worker must calculate their net income to determine their contribution base.
This model will be reviewed regularly to adjust to economic fluctuations and avoid inequalities.
How are the new contribution brackets structured?
The contribution brackets will be assigned based on actual income. The system allows bracket changes according to economic forecasts.
Classification criteria by income
Self-employed workers will be classified by annual net income brackets. Each bracket will have a minimum and maximum contribution base.
| Brackets | Minimum contribution base in 2025 | Monthly contribution in 2025 | Annual change in the contribution with respect to 2024 |
|---|---|---|---|
| Up to €670 | €653.59 | €200 | -€361.84 |
| Between €670 and €900 | €718.95 | €220 | -€428.64 |
| Between €900 and €1,125.90 | €849.67 | €260 | -€157.32 |
| Between €1,125.90 and €1,300 | €950.98 | €280 | -€79.92 |
| Between €1,300 and €1,500 | €960.78 | €294 | -€80.64 |
| Between €1,500 and €1,700 | €960.78 | €294 | -€80.64 |
| Between €1,700 and €1,850 | €1,143.79 | €350 | +€272.16 |
| Between €1,850 and €2,030 | €1,209.15 | €370 | +€450.84 |
| Between €2,030 and €2,330 | €1,274.51 | €390 | +€629.40 |
| Between €2,330 and €2,760 | €1,356.21 | €415 | +€806.64 |
| Between €2,760 and €3,190 | €1,437.91 | €465 | +€861.12 |
| Between €3,190 and €3,620 | €1,519.61 | €490 | +€915.72 |
| Between €3,620 and €4,050 | €1,601.31 | €515 | +€970.20 |
| Between €4,050 and €6,000 | €1,732.03 | €530 | +€897.84 |
| €6,000 or more | €1,928.10 | €590 | +€574.44 |
Calculation of the contribution base and its impact
The contribution base is calculated by subtracting deductible expenses from gross income. The higher the base, the higher the monthly contribution.
This base affects benefits such as retirement, temporary incapacity, and maternity.
What does net income-based contribution mean?
The new model requires declaring actual net income. This ensures proportional contribution and avoids distortions in the system.
Practical examples to understand the new system
A self-employed worker with a net income of €1,200 will pay a lower contribution than someone earning €3,000. Each bracket will have a minimum and maximum contribution base adjusted to the income.
How contribution regularisation works
If by the end of the year the declared income differs from what was estimated, the contribution will be adjusted. This may mean extra payments or refunds depending on the case.
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Support and allowances for self-employed workers in 2025
To ease the transition to the new system, contribution reductions and allowances will be introduced.
Targeted support will continue for new self-employed workers and vulnerable groups.
Will the flat rate for new self-employed workers change?
The €90 flat rate for the first year remains in place and may be extended if income stays below the minimum wage. Self-employed individuals who are also employed may qualify for additional contribution reductions.
What allowances and tax benefits are available?
There are incentives to reduce the tax burden:
- Reduction in contributions for self-employed workers with disabilities.
- Allowances to support maternity work-life balance.
- Incentives for new self-employed workers in strategic sectors.
There are also financial support programmes for self-employed workers in crisis and protection mechanisms for reduced income scenarios.
Legal and tax implications of the new contribution model
What changes does the reform introduce to labor legislation?
The new system enhances fiscal transparency and requires greater control of declared income.
Tax and accounting obligations of the self-employed
Self-employed workers must keep a detailed record of income and expenses to correctly adjust their contributions.
Role of the ministry of inclusion, social security and migrations
This authority supervises the new model and ensures its correct implementation.
How to adapt invoicing to optimise payment of contributions?
Strategies to minimise the economic impact
- Set aside part of income for future adjustments.
- Structure payments to avoid unexpected increases in contributions.
- Optimise tax deductions to reduce the taxable base.
Frequently asked questions about the new contributions
What are the options to change the contribution base?
Self-employed workers can request changes up to six times a year.
What happens to self-employed workers who were already contributing on a higher base?
They can keep their base if they wish, even if their income allows for a lower contribution.
When and how are contributions regularised?
Social Security will review the declared income and adjust the contribution at the end of the year.
Is the self-employed contribution deductible on income tax returns?
Yes, it can be deducted as an expense in the tax return.
Conclusion and key points to prepare for the new changes
It is essential to understand the new system and adjust financial planning. Reviewing income and managing invoicing will help avoid surprises.
Available allowances and tax tools can help minimise the economic impact.
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