Social security, health insurance, and pensions for 'autónomos' in Spain

Spain, the second-largest country in the European Union, offers a broad spectrum of social benefits to its people, including the self-employed. It has a comprehensive social security system, a state-sponsored healthcare system, and robust pension plans. In this article, we will give you a deeper insight into Spain's social security, health insurance, and pension provisions for the self-employed, known as autónomos in Spanish.

Social Security for Self-Employed Workers (Autónomos)

Autónomos in Spain are required to contribute to the Social Security System, specifically to the Special Scheme for Self-Employed Workers, known as Régimen Especial de Trabajadores Autónomos (RETA).

The fee for social security, or monthly cuota as they refer to it in Spain, ranges from €230 per month to €500 per month. However, there are significant discounts available for new autónomos, particularly during their first year of operation. You are eligible for a flat rate ('tarifa plana') of €80 per month for the first 12 months. In the following 12 months, you will be able to continue paying the 80 euro monthly fee as long as your net income is below the Minimum Interprofessional Wage (SMI).

It is important to note that the rates can slightly vary depending on the worker's age, professional circumstances, and the chosen base of contribution. For more information go to our article on Tax for Self-employed in Spain.

Health Insurance for Self-Employed Workers

Spain has a universal healthcare system funded by Social Security contributions and taxes, offering free or low-cost medical care to all residents, including the self-employed. Once registered with RETA, an autónomo becomes eligible for healthcare on the same basis as employed workers. This includes primary care, specialist consultations, hospital care, and even some prescriptions.

Even though public healthcare in Spain is of a high quality, some self-employed workers also choose to take out private health insurance, especially those who prefer faster service, a wider choice of specialists, or treatment in private hospitals. However, this is entirely optional.

Pension Plans for Self-Employed Workers

Self-employed workers in Spain are entitled to a pension at the standard state retirement age, usually 65 years, provided they have contributed to social security for at least 15 years. It's worth noting that the amount received upon retirement is correlated with the amount contributed throughout the worker's professional lifecycle. The more a worker opts to contribute (within the prescribed caps), the higher the eventual pension.

Some autónomos also choose to invest in private pension plans in order to supplement their state pension, particularly if they anticipate a low state pension due to lower lifetime contributions.

Spain has elaborate systems in place to support self-employed workers in their time of need or upon retirement, through mandatory social security contributions. The healthcare is comprehensive, covering nearly all aspects of healthcare services. Pensions are contributory and depend largely on a worker's social security contributions during their active years. Private health insurance and pension plans are also popular choices to secure additional benefits and a comfortable retirement.

However, as with any financial decision-making, it is important to seek professional advice to understand the complexities of the system and to make an informed decision that suits your specific needs. It's also essential to stay updated with any changes to the legislation regarding social security, health insurance, and pensions for self-employed workers in Spain. The state continually works to improve and adapt these schemes to better serve its residents. If you have decided to take the leap, and start a new life as a digital nomad or set up a business, now is the time to start looking for your new home in Spain.