Every entrepreneur must calculate their costs when moving from the world of ideas (we recommend reading our post "business ideas") to the world of reality. In this post we show you how to calculate the cost of your self-employed (RETA).
contribution base x contribution = self-employed cost
Freedom of contribution bases
In Spain we have a free choice of contribution bases. To calculate the cost of your self-employment, you must multiply the base freely chosen by each employer by the applicable contribution rate.
Freedom is not complete, but the regulations set a minimum, above which "complete" freedom does exist.
In 2021, the contribution bases that can be chosen are as follows:
- On in generalIn general, the minimum and maximum contribution bases are 944.40 euros and 4,070.10 euros per month respectively.
- Depending on age, the choice of bases may be limited. For example, if a person joins the RETA at the age of 48 or over, he or she can generally only choose a base of between 1,018.50 and 2,077.80 euros .
- Self-employed company worker, they will have a minimum contribution base of 1,214.10 euros per month (except if they are initially registered in the RETA, during the first 12 months of their activity).
What is the quota to be applied to the base?
In 2021, the contribution rates applicable to the RETA are as follows:
| Concept | Applicable type |
| Common contingencies | 28,30% |
| Occupational contingencies | 1,30% |
| Cessation of activity | 0,90% |
| Vocational training | 0,10% |
| Total contribution rate | 30,60% |
These are the rates set by law, but until the increase in the minimum wage is implemented in 2021, the government has decided to keep the contribution rates for 2020 frozen. So, until then the total current rate will be 30.30%.
Calculate the cost of your self-employment with these examples of fees to be paid, shown below:
General. Minimum base 944.40 * 30.30% = 286.15 euros.
By age, if I am over 48 years old, minimum base 1,018.50 * 30.30% = 308.61 euros.
Self-employed company, Minimum base 1.214,10 euros * 30,30% = 367,87 euros
Can the RETA base be modified during the year?
Yes, in Spain you can change a contribution base (upwards or downwards, but never below the minimums mentioned above) up to four times a year.
Exception: Initial Discharge Incentives.
However, the above rules do not apply if the self-employed person initially registers with the RETA or has not been registered in the previous two years (or three, if he/she has benefited from incentives in the RETA in a previous period). Note. In these cases, you can apply incentives in your contributions.
First 12 months: €60 fee for new registrations from 1 January 2019.
Months 12 to 1850% reduction during the second semester.
Months 18 to 2430% reduction during the following semester.