In many family businesses, it is common for the self-employed owner to have the help of a close relative. To formalise this situation legally, there is the figure of the collaborating self-employed worker, a category within the Special Scheme for Self-Employed Workers (RETA) that allows the participation of these relatives in the business to be regularised.
What is a self-employed collaborator?
A self-employed collaborator is a direct relative of the self-employed worker who works regularly, continuously and under their supervision. Although they are registered with Social Security as self-employed, they are taxed as an employee by the tax authorities, as they receive a monthly salary from the self-employed worker.
Which family members can be self-employed collaborators?
Family members up to the second degree of consanguinity, affinity or adoption can access this status, such as:
- Spouse
- Sons and daughters
- Fathers and mothers
- Grandchildren, grandparents
- Brothers, sisters-in-law, parents-in-law
Common-law partners are also eligible, provided they are officially registered and can prove they live together by means of joint registration.
Important exclusion: Self-employed persons operating through a company (such as a limited company) cannot hire self-employed collaborators.
Requirements to become a self-employed collaborator
To register as a self-employed collaborator, the following conditions must be met:
- Be a relative up to the second degree of the self-employed owner.
- Be at least 16 years old.
- Participate regularly and continuously in the business activity.
- Not be employed as an employee.
- Live with or be financially dependent on the self-employed person.
- If you wish to access the benefits, you must not have been registered with the RETA in the last 5 years.
This condition has no time limit, but it expires if the circumstances that justify it disappear (e.g. separation, financial independence or death of the owner).
Registration as a Self-Employed Collaborator
The registration process is simple and does not require registration with the Tax Office. All you need to do is submit Form TA.0521/2 to the Social Security Office to register as a family collaborator, along with the following documentation: the collaborator’s ID card, family record book and a copy of the self-employed person’s registration with the Tax Office (Form 037).
The procedure can be carried out:
- In person at the Social Security offices
- Online through the Social Security Electronic Office with a digital certificate
- Through an authorised agency or employment consultancy
It is important to register before the family member collaborator starts working in the business, to avoid penalties for working without Social Security coverage.
Bonuses and Contributions
For Self-Employed Collaborators:
If you have not been registered with the RETA in the previous 5 years, you can benefit from:
- A 50% bonus on your self-employed contributions during the first 18 months.
- A 25% bonus during the following 6 months (months 19 to 24).
With the actual income contribution system in force since 2023, self-employed collaborators can choose their contribution base according to their net income, allowing them to adjust their monthly contributions to the economic reality of their business.
For the self-employed owner:
If you formalise the collaboration through a permanent contract, you can opt for a 100% bonus on the employer’s contribution for common contingencies for 12 months.
Conditions:
- You must not have made any unfair dismissals in the previous 12 months.
- You must maintain the contract for at least 6 months after the end of the bonus period.
These bonuses are designed to encourage family members to register with the RETA and formalise their employment status.
Flat rate for new self-employed collaborators:
Self-employed collaborators who meet the bonus requirements can benefit from reduced contributions during the first 24 months:
- Months 1-12: Contribution of approximately €80 (with an 80% bonus)
- Months 13-18: 50% discount – Months 19-24: 25% discount
These figures may vary depending on the contribution base chosen and annual updates to the contribution system.
Obligations of the Self-Employed Collaborator
- You are not required to file quarterly VAT or income tax returns.
- You must file an annual income tax return, just like any salaried worker.
- You are entitled to benefits such as cessation of activity (unemployment for the self-employed), healthcare, temporary disability, etc.
- They must make monthly Social Security contributions (although the payment is made by the employer).
- They can choose additional coverage such as work-related accidents and occupational diseases (AT and EP).
- They are entitled to maternity/paternity benefits, retirement, permanent disability, etc.
Obligations of the Self-Employed Owner
- Pay the collaborator’s Social Security contributions (can be paid by direct debit).
- Pay the salary through monthly payroll.
- Record the salary as a deductible expense, which reduces the taxable base for income tax or corporation tax.
- Issue the collaborator’s monthly payslip with the corresponding income tax deductions.
- Submit form 111 (income tax deductions) quarterly and form 190 (annual summary) annually.
- Include the collaborator on form 036/037 as an employee.
- Keep employment documentation up to date (pay slips, proof of payment, etc.).
Termination of Self-Employed Collaborator Status
The termination of self-employed collaborator status must be formalised by submitting form TA.0521/2 to the Social Security authorities. The most common reasons for termination are:
- Permanent cessation of the owner’s activity
- Disappearance of the family link (divorce, separation)
- Economic independence of the collaborator
- Death of the owner or collaborator
- Hiring of the collaborator as an employee in another company
- Desire of the collaborator to cease activity
It is important to process the deregistration at the time of the actual cessation of activity to avoid continuing to pay unnecessary contributions.
Compatibilities and Incompatibilities
Compatible with:
- Receiving retirement or widow’s pensions (according to current regulations)
- Studying or training
- Being the owner of another business (in some cases)
Incompatible with:
- Being employed full-time by another company
- Being self-employed in another activity at the same time
- Receiving unemployment benefits from the General Scheme
The figure of the self-employed collaborator is a legal, simple and effective solution for integrating family members into the business, complying with all regulatory requirements. By formalising this employment relationship through the RETA, the collaborator’s protection is improved, administrative procedures are simplified and both the tax costs and the obligations of the self-employed owner are optimised. All of this contributes to strengthening the structure and sustainability of the family business.
This figure offers a balance between flexibility, social protection and tax advantages, making it the most recommended option for businesses where family collaboration is real, regular and ongoing. However, it is essential to comply with all legal requirements and keep documentation up to date to avoid problems with the Social Security or the Tax Agency.
At Blegal, we are here to help you. We have extensive experience advising self-employed individuals on formalising their employment relationships, improving their tax situation and protecting their rights. Contact us today and let our experts accompany you every step of the way to ensure the success and peace of mind of your professional activity.
