What Is Active Retirement in Spain

Active retirement (Articles 214 and 213 of the General Social Security Act (LGSS)) is a scheme that allows retired workers in Spain to continue working whilst receiving a proportional share of their retirement pension. It was introduced in Spain in 2013 to promote active ageing and enable retired workers to keep contributing to the labour market.

Compatible work may be carried out as an employee (whether full-time or part-time) or as a self-employed worker.

Once the employment relationship as an employee ends, the full retirement pension will be reinstated. The same reinstatement will apply upon cessation of self-employed activity where the circumstances allowing 100% of the retirement pension to be combined with work are no longer met.

From 1 May 2025 onwards — employees

Where a person reaches retirement age and chooses not to retire, they may apply for active retirement after one year of continuing to work.

Requirements:

The main requirement is to have accumulated the necessary years of contributions: previously 38 years were required, but from now on active retirement may be applied for with as few as 15 years of contributions.

How much do you receive under active retirement?

For employees:

if the pension is claimed after one year of continued work, the amount received will be 45% of the full pension whilst working.
if the pension is claimed after two years of continued work, the amount received will be 55% of the full pension whilst working.
if the pension is claimed after five years of continued work, the amount received will be 100% of the full pension whilst working.

From 1 May 2025 onwards — self-employed workers

For self-employed workers without employees, the same conditions apply:

if the pension is claimed after one year of continued work, the amount received will be 45% of the full pension whilst working.
if the pension is claimed after two years of continued work, the amount received will be 55% of the full pension whilst working.
if the pension is claimed after five years of continued work, the amount received will be 100% of the full pension whilst working.

Where the self-employed worker has at least one employee on a permanent contract and defers retirement:

75% if they delay retirement by between one and three years.
100% if they delay retirement by four years.

Do I contribute to Social Security and pay tax during active retirement?

Yes. During active retirement, contributions to Social Security are still required, albeit at a reduced rate, and all income — both from work and from the retirement pension — is subject to Personal Income Tax (IRPF) at the applicable rate.

WHAT WERE THE RULES ON ACTIVE RETIREMENT BEFORE 01.04.2025?

What requirements APPLIED to access active retirement?

To qualify for active retirement, the employee must meet requirements such as:

Access to the pension must have taken place at least one year after reaching the retirement age applicable in each case, with no allowance being made for retirements taken under any early retirement or age-reduction schemes that might otherwise apply to the individual.
Having reached the statutory retirement age.
Having contributed for a minimum of 35 years.
Having an employment contract and being registered with Social Security.

Where all three conditions are met, the individual may apply for active retirement and continue working while receiving a proportional share of their retirement pension.

Incompatibilities with active retirement:

This compatibility arrangement does not apply where the individual holds a post or senior position in the public sector, which is incompatible with receipt of the retirement pension.
This arrangement is incompatible with receipt of the supplement for extending working life beyond the standard retirement age, as established in Article 210 of the General Social Security Act (LGSS).

What percentage of the pension was I entitled to under active retirement?

The proportion of the pension receivable varies depending on the type of contract and the working hours of the employee:

it will be equivalent to 50% where no employees are engaged.
It will be 100% if you have at least one employee on your payroll (meaning you are registered under the Special Scheme for Self-Employed Workers (RETA) as a self-employed employer).

In other words, the amount of the retirement pension compatible with continued work will be equivalent to 50% of the amount established at the time of initial recognition — after applying the maximum public pension cap, where applicable — or of the amount being received at the time the pension and work are first combined. In all cases, any minimum supplement is excluded, regardless of the working hours or type of activity carried out by the pensioner.

However, if the activity is carried out on a self-employed basis and the pensioner can demonstrate that they employ at least one worker under a standard employment contract, the pension amount compatible with continued work rises to 100%.

Social Security contributions during active retirement:

While carrying out employed or self-employed work alongside a retirement pension, employers and workers will only be required to make Social Security contributions for:

temporary disability (IT) (at a reduced rate of 3.3%).
Occupational contingencies.

They will also be subject to a special solidarity contribution of 9% on the contribution base for common contingencies. This contribution does not count towards benefit entitlements. In schemes covering employed workers, it is split between employer and employee: the employer bears 7% and the employee bears 2%.

Is there an entitlement to a 4% annual increase for continuing to work beyond the minimum retirement age of 66?

No. These types of enhancements are reserved for retirement beyond the standard retirement age. They are not compatible with drawing a pension under the active retirement arrangement, nor under the flexible retirement arrangement (the latter applies only to employed workers).

Can I continue invoicing as a self-employed worker after retirement?

Under active retirement, you may continue invoicing, subject to the limits mentioned above.

Contributions will be payable on the amounts invoiced — specifically, that additional 9% solidarity contribution will apply to the income received.

Under standard retirement (where the pension is received at 100%), only professionals registered with a mutual insurance society other than the Special Scheme for Self-Employed Workers (RETA) — such as lawyers, doctors, architects, and similar regulated professions — may continue to invoice and receive payments without limit. Unlike those subject to the Special Scheme for Self-Employed Workers (RETA), the Social Security sets a cap for the latter: income may not exceed the current minimum wage (SMI).

Can I deduct expenses as a self-employed worker in active retirement?

Yes — as a self-employed worker (autonomo) in active retirement, you can continue to deduct your business expenses. We recommend seeking advice from our tax specialists.