# Social security payments for the self-employed Please help!



## Kate1 (Jun 8, 2009)

Hi all

I am hoping you can help me with a question. I have recently moved to Spain and whilst living here I intend to be self-employed. At the moment I have no health care provision except for the E111 , I have done some research and found out that paying into the social security every month for the self-employed is expensive, so would I be better instead taking out private health insurance? until I get the business up and running. Is there anyone else on this forum who had this same dilemna when you first came to spain, and what did you do?.


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## jojo (Sep 20, 2007)

Kate1 said:


> Hi all
> 
> I am hoping you can help me with a question. I have recently moved to Spain and whilst living here I intend to be self-employed. At the moment I have no health care provision except for the E111 , I have done some research and found out that paying into the social security every month for the self-employed is expensive, so would I be better instead taking out private health insurance? until I get the business up and running. Is there anyone else on this forum who had this same dilemna when you first came to spain, and what did you do?.


I think alot depends on whether you're here on your own or have dependants and if you're planning to stay here long term. I'm not too knowledgable on this, but I think when you pay into the system here (autonomo) you are paying for everything, including, after a certain ammount of time unemployment benefit. Which you may need one day?????? Also I think they would pay for your helathcare regardless, unlike private insurance which usually requires medicals and exclusions of one thing or another..????

See what others say tho, I have been wrong before lol!!!!

Jo xxx


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## XTreme (May 17, 2008)

Autonomo covers you and dependents!


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## Pesky Wesky (May 10, 2009)

See last post in Useful links sticky!!


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## Xose (Dec 10, 2008)

Kate1 said:


> Hi all
> 
> I am hoping you can help me with a question. I have recently moved to Spain and whilst living here I intend to be self-employed. At the moment I have no health care provision except for the E111 , I have done some research and found out that paying into the social security every month for the self-employed is expensive, so would I be better instead taking out private health insurance? until I get the business up and running. Is there anyone else on this forum who had this same dilemna when you first came to spain, and what did you do?.


Hi Kate1,
When you say "moved to Spain", do you mean for good? Keep in mind here that "for good" means so far as you know today - this of course can change at any time

Also, you didn't come from within the EC? - if you did, and if you "moved" to Spain, then, in the case of the UK, the E106 would have given you up to 2 years full cover by the UK system. I assume similar deals work with other EC members.

As to your question. If it's just for you, private will be much cheaper. If it's for you and, say your partner and kids and anyone else who may live with you... your parents, your partners parents, then the Autonomo is cheap because so long as they live with you, they too are covered unless they have a right to Spanish Social Security cover themselves. They would basically go on your SS Number.

The other, often forgotten benefit of Autonomo, is that it also covers your pension when you retire. Worth mentioning here that if you pay the minimum Autonomo, no surprise, it will pay the minimum pension when you retire. Many people pay 3 times that in Autonomo contribution and obviously end up with a somewhat better pension.

You really need to ask yourself....
o How long you will be here. So far as you know today. (SS will always be a better bet in the long run and for TOTAL, no limits cover)

o How many of you are there to cover (more than two and private's not so cheap)

o Are there any medical issues already being dealt with (privates don't like them)

o and do you care that you're not paying into a pension within that monthly sum. Even if you did, would you be paying in for the last 15 years up to 65 in any case as these are the ones that count?

Sorry there's more questions than answers, but the reality is that there's a lot of things to consider when things are of a temporary nature. Of course, for people who are here permanently and don't have a separate pension, being in that system is all important.

Xose


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## Kate1 (Jun 8, 2009)

Hi all

Thank you for all your replies, I should have said I am from the UK, the move here to Spain is a permanent move. I also should have said that I have no dependents and I live with my parents.


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## Xose (Dec 10, 2008)

Kate1 said:


> Hi all
> 
> Thank you for all your replies, I should have said I am from the UK, the move here to Spain is a permanent move. I also should have said that I have no dependents and I live with my parents.


In that case....
o Your parents are retired (or one of them is) and under the Spanish SS already. Until you have sorted out your self employment, you can apply to be covered by one of their cards as you have no income yourself (and you are living with them and the empadronamiento certificate from your town hall will show you all living in the same place). Unfortunately, some paperwork is always required for these things, but that is to be expected.

o Your parents are not yet retired and have their own insurance arrangements. Get some Private cover until you sort out Autonomo.

o Once you sort out Autonomo, the private route is only an add-on option. Lots of autonomos have private cover also as they can't afford to faf around with the SS waiting lists and the like, but payment of Autonomo is not an option once you become a self employed person here. The amount you pay, which will later be reflected in your pension, but doesn't impact your health cover, is an option.

By the way, if you contributed to the UK NI system in the past 5 - 6 years you would be entitled to the E106, thus taking the pressure off for quite a while in any event. Couldn't you get in touch with Newcastle and ask for the E106?!

Regards,
Xose


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