The answer is yes. In Spain, it is perfectly legal and feasible to work as a self-employed person while also being employed as an employee. This scheme is known as pluriactivity and is regulated by current legislation.
The combination of working as a self-employed person and as an employee, known as pluriactivity, is an option that more and more people are choosing in Spain. This modality offers the possibility of diversifying income and improving personal financial stability. Below, we will take a closer look at how pluriactivity works, its benefits, legal requirements and effects on pensions and Social Security.
What is the situation of pluriactivity?
Pluriactivity is the term that defines the employment situation of people who combine their work as an employee with a self-employed activity. This means paying contributions simultaneously to two Social Security schemes: the General Scheme and the Special Scheme for Self-Employed Workers (RETA).
What does the law say about pluriactivity?
In Spain, pluriactivity is completely legal and is regulated under the Texto Refundido de la Ley General de la Seguridad Social (Revised Text of the General Law of Social Security), approved by the Royal Legislative Decree 8/2015.
This regulation ensures that an individual can be contributing simultaneously to two schemes: the General Social Security Scheme and the Special Scheme for Self-Employed Workers (RETA).
In fact, not only is this permitted, but the law provides benefits such as reduced social security contributions to help moonlighters manage their tax liabilities more efficiently.
Article 313, for example, describes the rules for determining the contribution base between the two activities, allowing the benefits of each regime to be combined for greater social coverage.
What is the self-employed quota in a situation of pluriactivity?
In the case of multiple employment, the self-employed contribution is subject to bonuses. If you are employed full-time, you can benefit from a reduction of 50% of the minimum base for the first 18 months, and 75% for the following 18 months. In the case of part-time work, the reductions are 75% and 85%, respectively.
How many hours can you work as a moonlighter?
There is no specific limit on the number of hours for moonlighting. However, you must ensure that you comply with the working time regulations applicable to each regime. As an employee, your working hours must respect the working hours established by the Workers' Statute, while as a self-employed person, you can determine your own working hours.
Advantages of being self-employed and working for others
Being both self-employed and employed brings with it a number of attractive benefits. Firstly, there is the diversification of income, which adds an extra layer of financial security: if one source of income falls, you have the other to back you up.
In addition, social coverage is magnified. By contributing to two schemes, you have rights and benefits in both areas, which can translate into higher unemployment or disability coverage and a more substantial retirement pension.
Specific bonuses for multi-employment also contribute to a significant reduction in the costs of being self-employed, thus providing incentives for flexible working and entrepreneurship.
What formalities do you have to complete to become self-employed and an employee at the same time?
To start pluriactivity, you must register as self-employed with the Tax Agency and the RETA. This involves filing form 036 or 037 with the Tax Office and form TA.0521 with the Social Security. In addition, if you are already employed, make sure that your contract does not contain exclusivity clauses that prevent a second activity.
What is the impact on pensions and social security if I work several jobs at the same time?
Multiple activity has a positive impact on future pensions. By contributing to different schemes, social security contributions are added together, which can result in a higher pension. This happens because the contribution bases of both jobs can be unified in the final pension calculation.
In addition, in cases where certain conditions are met, you may be able to receive two different pensions: one from the general scheme and the other from the RETA. This system, known as the Social Security Coordination System, aims to ensure that no contribution effort is wasted and to ensure the maximum return on your contributions when the time comes for you to retire.
Frequently asked questions
Is moonlighting the same as moonlighting?
No. Pluriactivity refers to working simultaneously as an employee and as a self-employed person, paying contributions under two different schemes. On the other hand, moonlighting means having several jobs as an employee under the same contribution scheme.
Exploring pluriactivity can be a significant advantage for those seeking to maximise their income and improve their financial security. While it requires organisation and diligence in managing time and tax obligations, this modality can offer greater benefits in terms of income and social coverage.
