What is a collaborating self-employed worker (autónomo colaborador)? Requirements.

The collaborating self-employed worker (autónomo colaborador) was introduced into Spanish labor legislation to make it easier for small and medium-sized businesses to hire family members. Naturally, they are the people who know the inner workings of the business best and, in addition, they represent a saving on salaries for the business owner, since the money stays, precisely, within the family.

However, if you have a business and want to hire a self-employed worker under this arrangement, or if you have been offered a contract of this kind, you should be aware that there are several requirements. Likewise, once you are registered under this employment category, you have a series of rights and obligations.

What is a collaborating self-employed worker?

It is a category within the Special Social Security Scheme for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos) that you may join if you are a direct relative of the owner of the business for which you are going to work.

Direct relatives are understood to be those in the first or second degree. That is, parents, children, spouse, or siblings in the first case, and grandparents, grandchildren, or siblings-in-law in the second. Moreover, the relationship may be by consanguinity, adoption, or affinity.

However, as with all employment categories, there is a series of requirements that must be met, and being registered under this arrangement also entails a series of rights and obligations.

What conditions must be met

To qualify under this arrangement, and for the authorities to treat the worker as such, the worker:

• Must work habitually in the business. In other words, it must not be a matter of going to work only sporadically.

• May not be registered as an employee.

• Must be at least 16 years old. Under the Workers’ Statute (Estatuto de los Trabajadores), minors below this age may not perform any work under any circumstances.

• Must live in the same household as, or be dependent on, the owner of the business.

Unmarried partners (parejas de hecho) are a special case. Until 2015, they were allowed to be collaborating self-employed workers. However, that year the Law on the Promotion of Self-Employment (Ley de Fomento del Trabajo Autónomo) was enacted, which abolished that option. Therefore, unmarried partners currently cannot qualify under this arrangement.

Another exception is that of corporate self-employed workers (autónomos societarios), who carry on their work through their limited liability company (S.L.). They cannot hire collaborating self-employed workers unless they hold 50% of the company’s shares.

What are the obligations of collaborating self-employed workers?

One of the particular features of collaborating self-employed workers is that their tax obligations differ from those of ordinary self-employed workers. For the Spanish Tax Agency (AEAT), they are treated in the same way as employees. This means that they only need to file an annual Personal Income Tax (IRPF) return. In other words, they will not have to file quarterly IRPF or VAT (IVA) returns.

Unlike the Tax Agency, however, the National Social Security Institute (Instituto Nacional de la Seguridad Social) regards these workers as just another self-employed worker and will grant them the same benefits as other self-employed workers. In practical terms, for example, they will not be entitled to the unemployment benefit received by an employee, but they may receive the “self-employed unemployment benefit” (“paro de autónomos”) if they have paid contributions for 12 months.

In addition, you should know that the business owner who hires you also has certain legal obligations toward you. The most important are the following:

• Paying your Social Security contributions.

• Issuing you a monthly payslip for your salary in accordance with the collective bargaining agreement that applies to you.

• Properly recording in their accounts the items relating to your salary and contributions.