'Still a rip-off': Spain excludes some self-employed from fee hike

Initially, the Spanish government's new proposal last week wanted to introduce progressive social security fee increases from 2026 to 2031 for all autónomos.

It would have meant anyone earning just €670 would pay a fee of €217 per month next year (€17 more than this year) and someone with net income above €6,000 would pay €796 (€206 more).

This was met with severe criticism from the president of Spain's National Federation of Self-Employed Workers' Associations (ATA), Lorenzo Amor, who said the increase was a "terrible blow" and the proposal would not get their support.

READ ALSO: Spain proposes increasing social security fees for the self employed again

Spanish opposition leader Alberto Núñez Feijóo also lashed out by saying this was "tenth increase in contributions of self-employed workers" under the ruling Socialists and denounced the "fiscal suffocation" of all workers in Spain under Pedro Sánchez's government.

In response to the backlash, the government is now contemplating freezing increases for the first three income brackets, which is those who earn from €670 to €1,166.7 per month.

It means those earning €670 or less will maintain the same contribution rate in 2026 of €200 per month. For those earning between €670 and €900 it would be €220 and for those earning between €900 and €1,166.7 it would be €260.

For the remaining 12 brackets of earners, the proposed increases are limited to a range of 1 to 2.5 percent instead of the higher amounts they initially proposed of increases between €11 to €206.

Specifically, it would mean a 1 percent increase for those earning between €1,166.7 and €1,700 per month; a 1.5 percent increase for those earning between €1,700 and €2,330 per month; a 2 percent increase for those earning between €2,330 and €3,620 per month; and a final 2.5 percent increase for self-employed workers earning €3,620 or more per month.

READ ALSO: Why are Spain's new self-employed workers all foreign and what are their jobs?

Under the new proposal, contribution increases will range between €2.9 and €14.75 per month. These figures contrast dramatically with the increase that had been proposed last week.

"The proposal reflects all the concerns raised by various representatives and it's time to debate it," said Minister of Social Security Elma Saiz, who insisted that social security contributions "are not taxes, but rather go directly into the pockets of each self-employed person."

ATA says freezing self-employed contributions for those in the lowest income brackets until 2026 is "logical," although it has expressed opposition to increasing contributions "above the CPI" for the rest of the income brackets and warns that "it will be met with opposition”.

In the words of ATA president Lorenzo Amor, the remaining brackets continue to be a "scam and a rip-off".

READ ALSO: Eight key lessons I've learnt about being self-employed in Spain

The PP has also continued to slam the plan for a "new tax increase" for the self-employed, stating that the leftist government "tends to persecute those who generate wealth and employment in Spain".

"The self-employed can't take it anymore, they can't even pay the current tax... is the only thing this government can offer them is to continue to squeeze them?", People's Party politician Cuca Gamarra said.

PP leader Feijóo called the government's amended proposal "nonsense" and announced that he will exempt self-employed workers earning less than €85,000 from paying VAT .

The planned changes have also drawn criticism from Vox and Junts, and even from the government's hard-left junior coalition partner Sumar.

"Not a single vote from Junts will go towards putting more pressure on the self-employed. What is needed is to reduce the tax burden on the middle and working classes of Catalonia," Junts MP Miriam Nogueras wrote on her X account.

Far-left Podemos spokesperson Pablo Fernández warned the government that the Ministry of Social Security's proposal to freeze contributions for the self-employed is not valid and has demanded a reduction.

An agreement on self-employed contributions for 2026 must be reached and approved by December 31st, but so far the government doesn't have enough support for it to pass through Congress.

READ ALSO: Spain's PM risks having state budget rejected for third year in a row