Do you work as a freelancer without being registered in the RETA? Beware, the consequences can be very severe | Spanlish


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Monday, November 27, 2017

Do you work as a freelancer without being registered in the RETA? Beware, the consequences can be very severe

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Spain is one of the countries with the largest underground economy in the whole OECD . The reasons that explain this situation are many, but in most cases they are summarized in high labor and fiscal costs that professionals , especially the self-employed, have to assume.
Obviously, anyone who develops an activity on their own has a series of obligations. The most important one is that of being registered in the Special Regime of Self-Employed Workers (RETA) and paying in a religious way the Social Security contributions every month .
And while there are some assumptions that give the right to issue bills without being registered , the general rule is that all self-employed without exception must be registered in the aforementioned regime . Otherwise, we will expose ourselves to some sanctions that, in some cases, can be very burdensome .

Pay all previous fees

To begin with, the Administration can oblige the self-employed person to manage their registration in the RETA and to pay all unpaid fees since they are exercising that activity . Obviously, and although this can be very complicated to determine, Social Security can claim the payment of all fees up to the last four years.
Social Security can claim unpaid fees for up to the last four years.

Surcharges to meet the installments after the deadline

But the thing does not end here; To the amount of the installments must be added the surcharges to satisfy the quotas after the deadline . The new autonomous law has modified the percentage of surcharge, which is 10% if it is made within the first calendar month; 20% from the second month, and up to 35% if the contribution documents are not presented as of that moment.

Delay interests

To these surcharges must be added the default interest , which is 3.75% from 2016, and will be accrued as of the day following the expiration of the statutory period of entry of the installments, although they will be due after fifteen days from the notification of the enforcement order or communication of the start of the deduction procedure, without the debt having been paid.

Impossibility to benefit from any bonus

Without prejudice to the foregoing, the self-employed person loses the right to benefit from any RETA bonus if he has debts with the administration. That is, you can not qualify for, for example, the flat rate for new self-employed or any other disability reduction.
But how does all this translate into numbers? Well, a freelance who had stopped paying their monthly contributions to Social Security, and assuming that they paid for the minimum base, would have to pay about 4,000 euros to the Social Security for these unpaid installments . As if to think about it.
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