The five types of self-employed worker

According to collects the National Associations Federation of Self-employed Workers (TIES), the number of self-employed workers in Spain reached the figure of 3,319,188 in 2021, with an increase of 57,000 self-employed workers in connection with the previous year. This detail also supposes the highest figure from 2008.

All the freelance professionals are included in the Special Scheme for Self-Employed Workers (RETA), but they constitute a heterogeneous group with rights, provisions, taxation and contributions very various. According to these characteristics, the RETA divides to the self-employed workers in five categories: self-employed workers, freelance or professionals self-employed workers, company self-employed workers, economically dependent self-employed workers (TRADE) or agricultural self-employed workers.

Below, specified characteristics of each one of these groups.

Self-employed worker: individuals that carry out a work through which receive an economic compensation, of common form, without being subjects to the address nor to the organisation of another professional or company. They turn over such as individuals and they can contract staff, the same as companies.

They can distinguish two self-employed worker' large groups:

• Self-employed workers that they pay contributions for activities business studies in the business tax: cabbies, transport companies, merchants, self-employed workers that have a business of hospitality industry, a workshop, a centre of personal services (hairdressers', massages…) or self-employed workers that are dedicated to the construction and the maintenance. Many a time pay contributions for modules (PERSONAL INCOME TAX in regime of objective evaluation).
• Artists and athletes, that they constitute a special group in the business tax. It includes to professionals dedicated to artistic activities (cinema, theatre, television, circus, music, etc.), sport or taurine.

Freelance or professional self-employed worker: freelance professionals that carry out its activity in an independent way or they carry out tasks for third parties that they require of specific services. They can or not to have employees to its charge, as well as to have an open business premise to the public. Almost everything the group pays contributions for the PERSONAL INCOME TAX in simplified direct estimate. In this case, also are distinguished two types:

• Registered freelance professionals (architects, lawyers, psychologists, practitioners, pharmacists, vets, economists, engineers, prohealers, commercial vendors…). Sometimes do not quote directly in the regime of self-employed workers but instead via its professional associations' mutual societies.
• Freelance professionals that do not usually be members (programers, designers, publicists, translators, trainers, valuers, loteros, insurance agents, technicians of illumination, makeup artists, craftsmen, painters, representatives and a long and so on).

Company self-employed workers: self-employed workers that have set up a trading company (in any of its legal forms). It usually replies to cases in which the business has acquired a certain dimension and it has a contracted worker significant number, which is why is constituted as a society. The members of a company not are always obliged to give of registration such as self-employed workers. If it is a Limited Liability Company, only have this obligation anyone who fulfill following suppositions:

• Possess more than 50% of the capital of the company.
• Possess less than 50%, but to coexist with direct relatives that also are members and that the sum of both shares exceeds 50%.
• Practice directorial and management works, and more than possess 25% of the capital. In the case of not reaching 25% of shares, it is possible to enroll to the assimilated General Scheme (without right to unemployment nor to the Wage Guaranty fund or Fogasa).

Economically Dependent self-employed Workers (TRADE): as it indicates its name, corresponds to self-employed workers that they depend mainly of self company. To be recognised as such, they must give following suppositions:

• At least 75% of incomes come of the same payer.
• Not having employees, neither outsourcing part or all the activity to third parties.
• Have own material and infrastructure.
• Be who defines how organises its activity.
• Charge a compensation package according to results, according to what was negotiated with the client.
• Not having local, open branch or office to the public, or be member of a third party.

Agricultural self-employed workers: from 2008, self-employed workers that are dedicated to agricultural activities have a special scheme of contribution (Special System for Agricultural Freelance workers, MUSHROOM). The amount of its monthly contribution to the Social Security Institute is something lower than that one of a normal self-employed worker. To define as an agricultural self-employed worker must give following suppositions:

• Be holder of an agricultural concern and to obtain at least 50% of the total income of that operations.
• Not obtaining annual net yields of the operations higher than 75% of the maximum base of contribution of the General Scheme.
• Carry out personally agricultural works in its operations, although the Administration allows having in staff to employees.