Spain: New contribution system for self-employed workers based on income approved and immigration regulations amended

The Official State Gazette has published Royal Decree-Law 13/2022 of July 26, 2022, establishing a new contribution system for self-employed workers or independent contractors and enhancing protection for enforced inactivity.

Among other provisions, the main new change in the royal decree-law is that contributions to the Special Social Security Regime for Self-Employed Workers or Independent Contractors will be made based on the annual income obtained in the fiscal year in which their activities were performed. The General State Budget Law will establish each year a general table and a reduced table of contribution bases. Both tables will be divided into consecutive net income brackets. Each of these net income brackets will have a minimum monthly contribution base and a maximum monthly contribution base assigned to it.

The new legislation also contains a few transitional mechanisms to be used in fiscal years 2023, 2024 and 2025, allowing self-employed individuals to choose a contribution base between the contribution base relating to their income bracket according to the general and reduced tables in Transitional Provision One and the maximum contribution base determined in the General State Budget Law for the fiscal year concerned.

Elsewhere, Royal Decree 629/2022 of July 26, 2022 has been published which amends the Immigration Regulations. The aim is to update and enhance the immigration legislation in relation to employment, which has become outdated, to cover needs and gaps in the labor market.

Among others, amendments are made to provisions relating to the national employment level and to the list of hard-to-fill positions, the requirements used in settled-status procedures and the rules relating to the regime for students. An immigration processing unit is also created.