Self-employed workers can change the contribution base for which they are obliged to pay contributions up to 4 times within the same calendar year by choosing another one between the maximum and minimum limits applicable to each financial year.
If you are self-employed, you can change your tax base up to four times a year. Specifically, you can do so at the following times:
- With effect from 1 April if the application is made between 1 January and 31 March.
- With effect from 1 July if the application is made between 1 April and 30 June.
- With effect from 1 October if the application is made between 1 July and 30 September.
- With effect from 1 January of the following year if the application is made between 1 October and 31 December.
Therefore, if you wish to change your contribution base, the second deadline for doing so in 2019 is 30 June. For these purposes, in general, the minimum and maximum contribution bases in 2019 are 944.40 and 4,070.10 euros per month respectively. Note. However, depending on your age on 1 January, the contribution base you can choose in 2019 is limited. Specifically:
- You were not yet 47 years old. If you had not yet reached the age of 47 on 1 January 2019, you can choose any contribution basis within the minimum and maximum limits indicated (EUR 944.40 and EUR 4,070.10).
- If you were already 47 years old. The same rule applies if you were 47 years old at that date and your contribution base in December 2018 was equal to or higher than 2,052 euros. Attention! If your contribution base in that month was lower, you cannot choose a base higher than 2,077.80 euros per month. This, unless you exercise your option before 30 June 2019, or unless you are the surviving spouse of the owner of a business and, as a result of the death of the latter, you have had to take over the business and register with the RETA at the age of 47 (in these cases, there is no limitation of bases).
- 48 years of age or older. If you were already aged 48 or over at the beginning of 2019, you will only be able to choose a base of between 944.40 and 2,077.80 euros. This is unless you are the surviving spouse of the owner of a business and, as a result of the death of the latter, you have had to take over the business and register with the RETA at the age of 45 or over, in which case the choice of bases will be between the amounts of 944.40 and 2,077.80 euros per month.
However, the contribution base for self-employed workers who, prior to the age of 50, had paid contributions for five or more years in any of the Social Security system's schemes, shall be as follows:
- If the last accredited contribution base was equal to or less than 2,052 euros per month, contributions must be paid on a base of between 944.40 and 2,077.80 euros per month.
- If the last accredited contribution base was higher than 2,052 euros per month, contributions must be paid on a base of between 944.40 euros per month and the amount of that base plus 7%, up to the maximum contribution base.
On the other hand, corporate self-employed persons (i.e. partners who have effective control of their company and who also work in it) and self-employed persons who at any time in 2018 and simultaneously have had a number of employees equal to or greater than ten, have a minimum contribution base of 1,214.10 euros.
If you want to change your basis, don't delay. In general, you will be able to opt for a base of between 944 .40 and 4,070.10 euros.