This morning, the Royal Decree-Law 11/2021, of 27 May, on urgent measures for the defence of employment, economic reactivation and the protection of self-employed workers was published, establishing five new measures for self-employed workers.

Written by Cyrielle Agut

Employment and tax lawyer

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FIRST MEASURE (Art. 5): SOCIAL SECURITY CONTRIBUTION EXEMPTION FROM 01.06.2021 TO 30.09.2021

Period of application: from 01.06.2021 to 30.09.2021.

Requirements:

1. Be registered under the Special Scheme for Self-Employed Workers (RETA) or the Special Scheme for Sea Workers prior to 31.05.2021.
2. Have received one of the cessation-of-activity benefits under Articles 6 and 7 of Royal Decree-Law 2/2021, of 26 January.
3. Remain registered as a self-employed worker until 30.09.2021.

Social Security contribution exemption amounts: 

1. 90% of contributions in June.
2. 75% of contributions in July.
3. 50% of contributions in August.
4. 25% of contributions in September.

Exception: the cessation-of-activity benefit and the contribution exemption cannot be received simultaneously.

SECOND MEASURE (Art. 6): EXTRAORDINARY CESSATION-OF-ACTIVITY BENEFIT FOR SELF-EMPLOYED WORKERS WHOSE ACTIVITY HAS BEEN TEMPORARILY SUSPENDED BY ORDER OF THE COMPETENT AUTHORITY 

Period of application: from the day following the adoption of the resolution, or from 01.06.2021 if the suspension resolution was issued before that date. Maximum duration of 4 months, ending either when the lifting of the suspension is agreed or on 30.09.2021. 

Requirements:

1. Be registered under the Special Scheme for Self-Employed Workers (RETA) or the Special Scheme for Sea Workers at least 30 calendar days before the date of the resolution, and in any case before the suspension is agreed if it was decreed before 01.06.2021. 
2. Be up to date with Social Security contributions.
3. Remain registered under the Special Scheme for Self-Employed Workers (RETA) throughout the period of activity suspension. 

Amount: 70% of the minimum contribution base. Where a family unit exists and two or more members apply for the benefit: 40% of the minimum contribution base.

Exemption: relief from the obligation to make contributions from the first day of the month following the adoption of the suspension, or from 01.06.2021 if the measure predates that date. 

Incompatibility: receipt of remuneration from employed work, unless income from employment is less than 1.25 times the amount of the minimum wage (SMI). 

Application deadline: within the first 20 calendar days following the entry into force of the agreement or resolution, or before 21.06.2021 if the measure was issued before 01.06.2021. 

THIRD MEASURE (art. 7): CESSATION-OF-ACTIVITY BENEFIT COMPATIBLE WITH SELF-EMPLOYED WORK 

Period of application: from 01.06.2021 to 30.09.2021.

Who is this for? Self-employed workers receiving the benefit under art. 7 of Royal Decree-Law 2/2021 who have not yet exhausted their benefit entitlement periods — the benefit is automatically extended until 30.09.2021. 

Requirements: 

1. Be registered and up to date with Social Security contributions.
2. Meet the conditions set out in Art. 327 of the General Social Security Act (LGSS) and Art. 7 of Royal Decree-Law 2/2021.
3. Demonstrate a reduction in income of more than 50% in Q2 and Q3 2021 compared to Q2 and Q3 2019.
4. Demonstrate that net taxable income during Q2 and Q3 2021 did not exceed €7,980.00.
5. Compliance with the statutory declaration requirement.
6. Not having exhausted, at that date, the full entitlement period provided for in Art. 338.1 of the General Social Security Act (LGSS).
7. Possibility of taking up employed work, provided the conditions set out in Section 10 of Art. 7 of Royal Decree-Law 11/2021 are met.

Exemption: none. The self-employed worker must continue paying Social Security contributions.

FOURTH MEASURE (Art. 8): EXTRAORDINARY CESSATION-OF-ACTIVITY BENEFIT FOR SELF-EMPLOYED WORKERS RECEIVING, AS AT 31.05.2021, THE SUPPORT MEASURES UNDER ARTS. 6 AND 7 OF ROYAL DECREE-LAW 2/2021.

Period of application: from 01.06.2021 to 30.09.2021. Maximum of 4 months if the application is submitted before 20.06.2021.

Who is it for? Self-employed workers receiving support under Arts. 6 and 7 of Royal Decree-Law 2/2021, who have not exhausted their benefit entitlement periods and are not eligible for the cessation-of-activity benefit provided for in Art. 7 of Royal Decree-Law 11/2021.

Requirements: 

1. Be registered and up to date with Social Security contributions prior to 01.04.2021.
2. Demonstrate that taxable income in Q2 and Q3 2021 was lower than income received in Q1 2020.
3. Demonstrate that net taxable income during Q2 and Q3 2021 did not exceed €6,650.

Amount: 50% of the minimum contribution base. Where two or more members of the same household apply for the benefit: 40% of the minimum contribution base.

FIFTH MEASURE (Art. 9): EXTRAORDINARY CESSATION-OF-ACTIVITY BENEFIT FOR SEASONAL SELF-EMPLOYED WORKERS

Period of application: from 01.06.2021 to 30.09.2021. Maximum of 4 months if the application is submitted before 20.06.2021.

Who is this for? Self-employed workers whose activity was carried out for a minimum of 4 months and a maximum of 7 months during 2018 and 2019.

Requirements: 

1. Having been registered as self-employed for a minimum of 4 months and a maximum of 7 months in each of the years 2018 and 2019, with a minimum timeframe of 2 months between June and September of those years. 
2. Being up to date with Social Security payments before 01.04.2021.
3. Not having been registered for more than 60 days during the 2nd and 3rd quarters of 2021. 
4. Demonstrating that net taxable income during the 2nd and 3rd quarters of 2021 did not exceed €6,650.

Amount: 70% of the minimum contribution base. 

Exemption: relief from the obligation to make Social Security contributions.

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