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RELOCATION
8
Social Security
Spain's comprehensive social security benefits cover health, sickness,
maternity, work injuries, housing, unemployment, retirement and death.
Most of Spain's social security spending
goes on benefits for the elderly, disabled,
widowed and for housing, all dealt with by
the Instituto Nacional de Seguridad Social
(INSS).
Unemployment benefit is distributed by the
Instituto Nacional de Empleo (INEM) and
the remaining 30 percent or so of revenue is
spent by the Instituto Nacional de Salud
(INSALUD) on health services and by the
Instituto de Servicios Sociales (INSERSO)
on social services.
For more information, contact your local
social security office (see under Seguridad
Social in the Yellow Pages) or the Instituto
Nacional de la Seguridad Social, www.segsocial.es,
tel. 900 616 200 (free information
line).
WHO CONTRIBUTES?
Any foreign employee (cuenta ajena) working
for a Spanish company or anyone who
is self-employed (cuenta propia) should contribute
to Spanish social security.
You do not need to pay social security contributions
in your home country if you are
an employee in Spain, though agreements
between Spain and 40 countries including
Australia, Canada and the US mean that
expats can remain members of their country's
social security system for a certain
period.
EU nationals who are either self-employed
or posted to Spain by their company can
continue to pay social security in their
home country for one year. After working
in Spain for two years, EU nationals must
pay contributions to the Spanish social
security system.
You must have lived in Spain for a limited
period and contributed a minimum amount
before you are entitled to benefits.
Pensioners in Spain who receive a state
pension from another EU country are automatically
entitled to health benefits in
Spain, providing your have an E121 form
with you from your country's social security
system.
British expats can receive further information
from the Department of Social Security,
www.dwp.gov.uk, tel. 0044 191 218 7777.
HOW DO YOU CONTRIBUTE?
Your employer will usually deal with the
paperwork. If not, or if you are selfemployed
or retired with an EU state pension,
you need to register at your local
social security office.
Pensioners should take copies of their E121
form, passport, birth certificate, marriage
certificate if applicable and proof of residence
(rental contract or deed of sale -
escritura).
Once you receive your registration card
(tarjeta sanitaria) a few weeks' later, your
spouse and dependants are also covered.
HOW MUCH ARE CONTRIBUTIONS? (cuotas)
Contributions are calculated according to
your taxable income. You start paying as
you as you start working in Spain, whether
resident yet or not.
The minimum monthly salary on which
you must pay contributions is around €450,
depending on the type of contract and
work sector: 37.2 per cent of that wage is
paid in social security, only about 6.4 percent
of that by the employee and the rest by
the employer.
The self-employed - even part-time workers
- pay a minimum of €220 a month in social
security contributions, which can be a sizeable
chunk of a monthly wage in Spain.
SPAIN EXPAT SURVIVAL GUIDE WWW.EXPATICA.COM