Supplementary allowance for the self-employed: what is it and how to get it
Eligibility, amount, application periods, duration, etc. Here you can find out all about the supplementary allowance for self-employed workers and freelancers approved by the Spanish government.
3 min read
Below we'll describe what exactly the supplementary allowance approved by the government is and how to apply for it. It’s aimed at the self-employed whose businesses have been significantly affected or even ceased operations as a result of COVID-19.
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Who can apply for the allowance and what requirements need to be met?:
Any self-employed worker who has ceased their business activity as a result of the state of emergency declared due to the COVID-19 health crisis, or whose turnover has dropped by 75% compared to the monthly average over the last six months.
They must be up-to-date with social security contributions. If this requirement is not satisfied on the date of which the activity was suspended or the turnover reduced—the self-employed worker has a non-extendable period of 30 days to make up arrears.
They must be enrolled in the Special Regime for Self-employed Workers and Freelancers ("Régimen Especial de trabajadores por cuenta propia o autónomos").
Amount and duration of the allowance:
The allowance amounts to 70% of the calculation basis; if the self-employed worker has paid at least 12 months of contributions for the termination of activity, the allowance will be 70% of the calculation basis. If the worker has paid less than 12 months' contributions, they’ll be entitled to 70% of the minimum contribution basis for the group to which they belong. This allowance will last 1 month, with the possibility to extend it until the end of the state of emergency. The allowance will be between €661 and €950.
Social security contributions while receiving the allowance:
Those eligible to claim the allowance will also be exempt from paying social security contributions.
Self-employed workers who must continue providing services:
Those workers who are required to continue working (such as taxi drivers) can apply for this allowance if their turnover drops by at least 75%; in this case, they can receive the allowance while continuing their professional activity.
Self-employed workers with employees:
If a self-employed person employs other workers and ceases their business activity as a result of the state of emergency, or if their turnover drops by 75%, they can implement a temporary redundancy plan under the ERTE scheme ("Expediente de Regulación Temporal de Empleo") and take advantage of this allowance.
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There is no minimum contribution period to be eligible for this allowance.
Application period for the allowance:
There are different application periods, depending on whether the business has ceased trading or its monthly turnover has dropped. Those which ceased business activity as a result of the state of alarm can apply for the allowance from 18 March 2020 onward. Those experiencing reduced turnover must submit documentation to prove this: they can apply for the allowance as soon as they have presented this evidence.
Exclusions:
This allowance is incompatible with any other social security benefits. It cannot be claimed by anyone who is already receiving welfare payments.
If the self-employed worker is engaged in multiple business activities:
A self-employed worker can only submit a single application covering one single business activity.
How to apply for the allowance and documentation required:
The self-employed worker must contact their tax consultant and submit the following documents:
Application for the allowance.
Form 145 - Provision of data to the payer.
Photocopy of National Identity Document (DNI) / Foreigners' Identity Number (NIE) / passport.
Bank account number / IBAN.
Proof of two most recent social security contribution payments.
Family book ("Libro de familia") if they have dependent children.
If the allowance is requested due to a drop in turnover rather than the cessation of business activity, the self-employed worker must submit documentation to prove this reduction.
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Update (May 2020): Our customers have been facing problems when managing payments coming from Spanish public institutions. Please read the letter from our General Manager about the topic relating to public benefits and N26 accounts.
