Spanish Social Security Contributions: General Scheme, RED & RETA
4 Contributions in the General Scheme
The employer is obliged to report the Social Security scheme and the amount of the worker's contribution.
Who is obliged to contribute? Employers and workers are obliged to contribute for Social Security. Contributions apply to common contingencies and to cover work accidents and occupational diseases.
Who must also make a deposit? Employers are responsible for declaring and making the corresponding deposits for contributions.
When does the obligation to contribute start? The obligation to contribute starts when the worker or entrepreneur begins their work activity, including the trial period.
How long does the obligation to contribute last? The obligation lasts while the worker provides their services, including situations of temporary disability, maternity or during trial periods.
When does the obligation end? The obligation expires at the end of the employment relationship. This termination must be managed according to the applicable procedures and deadlines.
What if a termination is not communicated? Failure to communicate the termination does not extinguish the obligation to contribute. Likewise, communication of termination does not extinguish the obligation if the person continues to provide work.
5 RED System (Electronic Submission of Documents)
What is the RED system? The RED system is a service provided by the General Treasury of the Social Security that enables the electronic exchange of information between companies and Social Security authorities.
The RED system covers two main areas:
- Contribution reporting: Allows submission of contribution data and related procedures.
- Membership management: Enables additions, deletions and changes of affiliation data.
Who can use the RED system? Use of the RED system requires a license or authorization to access the electronic services provided by the Social Security.
Special Scheme for Self-Employed
Definition: A self-employed person (for the purposes of the special regime for self-employed workers, RETA) is someone who performs on a regular basis a personal and direct economic activity.
In Spain, affiliation to RETA is compulsory for persons over 18 residing and working in the country who meet the conditions for self-employment.
Who is included in the special scheme?
- Self-employed or independent workers, whether or not they are owners of companies.
- Spouses and relatives up to the 3rd degree, provided they do not have the status of employees.
- Self-employed foreign professionals.
- Members of collective companies and members of cooperatives who meet the self-employed criteria.
Registration and deadlines: Registration and/or affiliation must be requested within 30 calendar days following the start of the activity. The application must be submitted to the General Treasury of the Social Security.
Obligation to contribute: Affiliation is mandatory and self-employed persons are required to pay contributions (quote) to the Social Security.