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WORKING IN SPAIN

Can I claim unemployment benefits and be self-employed in Spain?

If you're unemployed and are receiving benefits are you allowed to sign up to be self-employed at the same time? Will you lose your benefits or are there circumstances where 'autónomo' work and 'paro' are compatible?

Can I claim unemployment benefits and be self-employed in Spain?
Receiving unemployment benefits and registering as autónomo can be compatible in Spain.(Photo by GERARD JULIEN / AFP)

In a word, yes: you can claim unemployment benefits and be self-employed as well in Spain. But there are some caveats.

Since 2015, people have been allowed by Spanish law to register as self-employed and receive unemployment benefits at the same time, whereas in the past you would stop receiving unemployment benefits automatically the moment you registered as self-employed. Royal Decree 4/2013 and Law 31/2015 changed all that.

In Spain cobrar el paro (to receive unemployment benefits) is a right of all workers who’ve made at least 360 days of social security contributions in the last six years, and in some cases you can even qualify if you’ve only worked for three or six months.

READ ALSO: How much severance pay will I receive if I get fired in Spain?

The maximum period for which you can claim unemployment benefits while you are registered as a self-employed person is 270 days.

That is, you will be able to receive unemployment for the first nine months from the date you become self-employed.

There are also some rules, of course. In order to to be able to get unemployment benefits as a self-employed person in Spain you:

  • Cannot do any type of work as an ’employee’. In this case, your unemployment benefits are withdrawn. 
  • Do not need to comply with the usual obligations as a ‘job seeker’ as a self-employed person.
  • Must not have been self-employed and claiming unemployment at the same in the previous 2 years.
  • Can’t become a partner in a commercial company.

How much is it?

According to the Spanish government, “unemployment benefits are calculated according to the regulatory basis; this is the average of the contribution bases of the last 180 days of work prior to unemployment. The amount of unemployment benefit during the first 180 days will be 70 percent of the regulatory base, and from day 181 it will be 60 percent of that base”. 

READ ALSO: Spain approves new €600 per month unemployment benefit for artists

The exact amount you’re entitled to, based on that calculation, may not be lower than the minimum limit or higher than the maximum limit established by Spain’s IPREM – the index reference used to calculate state aid such as the minimum wage and unemployment benefits.

For 2023, the Spanish government set the monthly IPREM at €600.

Based on that, the minimum amount of unemployment benefit for 2023 will be €560 (without children) and €749 for this with dependent children. The maximum is €1,225 for people without children and €1,400 for people with one child, and €1,575 for people with more than one dependent child.

You can find more information about the minimum and maximum benefits here.

Self-employed in Spain

Spain reportedly ended 2022 with 3,329,863 self-employed people, with most autónomos working in commerce, agriculture, construction, hospitality, science and tech industries.

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For members

WORKING IN SPAIN

Can you work outside of Spain on the non-lucrative visa?

The non-lucrative visa is a popular choice for non-EU citizens who want to come and live in Spain, but there’s long been confusion over whether or not you can work outside of the country or not while you’re on it.

Can you work outside of Spain on the non-lucrative visa?

The non-lucrative visa or NLV as it is often referred to, is a residency authorisation that allows non-EU foreigners to live in Spain.

As the name suggests, however, it’s non-lucrative, so it doesn’t give you the right to work here, instead you have to demonstrate that you have sufficient savings for yourself, as well as any family members you’re bringing with you. 

Many people claim that if you’re not actually working in Spain while on the visa, and if you’re work comes from abroad then it’s fine, but is it actually legal?

Online searches reveal many conflicting results with several sources saying you absolutely cannot work on the visa at all under any circumstances and others saying that you can and authorities simply turn a blind eye.

It used to be a big grey area because Spanish law didn’t specifically mention remote working. Spain’s General Immigration Regime stated that, while staying on the NLV:

  • You mustn’t work for a Spanish company
  • You mustn’t work for a Spanish employer
  • You can’t open your own business in Spain
  • Nor can you open a branch office in Spain

In terms of remote working specifically, the law did’t actually address it.

READ ALSO: Does Spain check if you’re working on the non-lucrative visa?

But, authorities seemed to suggest that you couldn’t work on it at all, under any capacity, due to their rulings and decision making.

According to Barcelona-based law firm Balcells: “During the pandemic (from 2020 onward), the vast majority of consulates started to reject applications from foreigners who clearly stated they wanted to start working remotely”.

“Or if the consulate sees that remote work is what you have been doing for the past months/years, your application may even get rejected too”.

In 2023, a Madrid court denied a Venezuelan national’s application for the non-lucrative visa because they continued to advertise their professional services on sites like LinkedIn.

These all support the fact that working, even remotely for another country is not allowed.

The amount of savings you have to prove for the non-lucrative visa in 2024 is €2,400 per month, which must come from passive income such as return on investments and rental income, rather than physically working.

READ ALSO: Non-lucrative vs digital nomad visa: Which one should you choose to move to Spain?

There is now even stronger legal evidence to support the theory that you can’t work remotely while on the NLV, with the introduction of Spain’s Digital Nomad Visa or DNV in early 2023.

The whole point of the DNV is to allow non-EU remote workers and freelancers to be able to live and work in Spain, so it would defeat the entire purpose of this visa if you were allowed to work remotely on the NLV.

The DNV in fact has many requisites to ensure the way in which remote workers can legally work here. For example, they have to have worked for the same employer for three months or more and any company they work for has to have been in existence for more than one year.

To apply for the DNV in 2024 you have to prove a monthly income of at least €2,646. While this is slightly more than the NLV, it does mean that you can continue working. 

READ ALSO: Does Spain accept savings for the digital nomad visa if earnings aren’t enough?

Many remote workers may have used the NLV option in the past, but today there is no excuse, you may as well just apply for the DNV instead.

As authorities are cracking down on NLV applications, it’s simply not worth the risk having your application denied if you plan to continuing working. If you’re found out and are not declaring your income properly too, you could end up with a hefty fine and be unable to renew your visa in the future. 

Therefore, if you want to work remotely for company outside of Spain, it’s best to forget the NLV and go straight for the DNV, which will ensure what you’re doing is truly legal.

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