People who are self-employed in Spain will experience a series of changes in 2023 that will affect the calculation of the monthly fee, which, from January 1 next year, it will depend on the net income that the person generates throughout the year.
A lot of uncertainty has already been generated around this new contribution system, which will change the way in which income will have to be communicated to Social Security.
However, there is a tool that will allow you to anticipate this situation. It is a simulator that will let you know how much estimated money you will have to pay within the new contribution scheme.
Thus, after months of preparation, this simulator has been made available to anyone who needs to verify what will be the new fee that the person must pay as a self-employed person from 2023; all this without the need to register on the page.
It is worth mentioning that it will not be until the end of the year 2023 when the person get the actual income generated throughout that yearso that it will be there when it will be determined if a refund of the amount of the installments will be made or if you will have to pay the difference.
Added to this, Social Security itself is aware of the existence of this tool, of which they have indicated that it is a purely informative simulatorso that the fees will be calculated taking into account only the income forecast and not the deductions to apply.
This means that the net fee to be paid will be obtained from the subtraction made between net income and expenses.
However, this simulator will be equally useful to have a notion of the new quota that you will assume as a freelancer from 2023.
How to use the simulator to calculate Social Security contribution
You will simply have to enter the simulator website, where you will then have to enter the annual income you expect in the drop-down menu identified as What income do you expect to get?
Check your 2021 income and keep the deducted net income box in case you expect to generate the same income as in 2022. Then, the value of the box proceeds to divide it by 12 and finally select your fork.
Once this is done, choose the fee within the income range. Something that is notable about this simulator is that it gives you the opportunity to choose your contribution base and adjust the difference between minimum and maximum quota.
In the end, the simulator will generate a table with the freelancer’s quota and contribution base, based on the previously entered data.
On the other hand, You will have a term from January 1 to February 28, 2023 to notify Social Security of the contribution base for which you will make your contributions as of March 1.
