Self-employed workers temporarily displaced abroad must continue to contribute to RETA

Self-employed workers who move to a foreign country to carry out their activities for work-related reasons Social Security must be informed of this condition from day one. next to, You must continue to contribute to the Special Scheme for the Self-Employed (RETA)despite the fact that the income they receive from their activity is subject to taxation in the country of destination, where the work is carried out.

This was verified by the experts this newspaper consulted, who understood that it was a complex issue. Depending on the destination country, The periods during which the freelancer works -or their displaced employees- The contribution to the Spanish social security must be continued differentlySo it is convenient to know this information in advance.

To simplify the procedures, the Social Security launched a new service in the RED system a few days ago, which allows “Automation of most of the processes of obtaining the forms to request the recognition of the preservation of the Spanish legislationFor the self-employed, as long as they are temporarily displaced in a country of the European Union, European Economic Area, United Kingdom or Switzerland.

Self-employed workers temporarily displaced abroad are obligated to continue contributing to RETA

As María Eugenia Blasco, attorney in charge of the immigration area of ​​AGM Abogados, explains to this medium, the general principle governing these cases is that the person must pay contributions in the country in which they provide the service. However, there is an exception to this rule: That there is a social security agreement with the country of destination or, in the case of European countries, a regulation. It assessed that “in these cases, if a temporary displacement occurs, the worker is allowed to continue contributing in Spain despite the service being rendered in another country”.

How long must a self-employed person notify Social Security of their temporary homelessness? “This must be done in all cases, be it a day or a year. Currently, the maximum at European level is one year, which can be extended to another six months if the project is not completed. Even if it’s just one day, you still have to communicate, emphasized María Eugenia Blasco.

Continuing to pay contributions to Spanish Social Security during a temporary job allows the self-employed to continue contributing during this time. in this way, It would avoid that a period out of state would reduce their entitlement or future retirement pension.

In addition, in cases where there is a social security agreement with the destination country, “those who are self-employed will be covered.” But, It will be necessary to assess whether the health coverage is comparable To the one who is provided here or, conversely, a separate medical insurance must be contracted, ”explained AGM Abogados partner.

Social Security speeds up the procedures for reporting temporary displacement abroad

To speed up these procedures, which are often complicated for the self-employed, Social Security launched a new service in the RED system a few days ago, which allows “Automation of most of the processes of obtaining the forms to request the recognition of the preservation of the Spanish legislationFor the self-employed, as long as they are temporarily displaced in a country of the European Union, European Economic Area, United Kingdom or Switzerland.

As explained by Social Security, the first stage consists of a data entry process, in which the self-employed person or the company must specify the type of worker—whether employed or self-employed—who is required to travel authorization.

From here, they explained, the new system would check “compliance with the necessary requirements, as well as the legislation by which it is required to maintain the application of Spanish legislation in case of vagrancy”. Once you fill in the data, The form will be issued and made available to the company or freelancer the next day In the electronic headquarters of Social Security.

In addition, sent workers will be able to access information about temporary displacement abroad through the portal of the Social Security Treasury, You matter. In this way, the sending worker will be able to see this form in the documents on his personal page, as well as its validity. Finally, You will receive a text message each time this form is made available to you.And they explained.

Taxes to the treasury depend on the duration of the temporary relocation

A different situation is taxes which the self-employed must generate from the income they receive outside Spain during temporary displacement. For example, in their income statements, which must be submitted here or in the country of destination depending on the length of their stay.

“If you spend more than 183 days of the year abroad, you will be taxed in the destination country, because he will become a tax resident. If you don’t arrive these days, said María Eugenia Blasco, he will keep his tax residence in Spain and must make his income statement here, as if he were not abroad.

However, there are exceptions. For example, the case of a self-employed person who, due to temporary displacement, spends more than 183 days outside Spain, leaving his family and home here. It may be considered that he maintains a tax residence in Spain. As a displaced person, you are not a direct tax resident outside of SpainAGM, Abogados Immigration District Chief Assessment.

Thus, “depending on the duration of the temporary displacement, the state of Contribute to Spanish Social Security while the income statement is issued in the country of destination. “

Finally, it must be remembered that the self-employed with the employees they transport temporarily outside of Spain are also obliged to contribute to social security for them, in the same way as their own contributions. next to, “Working conditions should be the same as in the country of destination if they are better than here. For example, in aspects such as the length of the working day or the salary, ”María Eugenia Blasco concluded.

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