If you are heading off to work abroad or transferring your company's employees abroad, you might be interested in knowing where you stand in Social Security contributions, so that you can claim benefits in Spain.
If you have to transfer professionals abroad to work, you may be wondering where this leaves you with your Social Security contributions. As you know, these contributions are considered when claiming benefits, such as unemployment or a state pension.
Also, if you’d like to provide workers with more information on their situation whenever they return to Spain, you might be interested in receiving more information on how to make Social Security contributions in Spain, although this is not always possible. Let’s take a look at the different situations you may find yourself in:
How do you pay Social Security contributions in Spain when working abroad?
You are a posted worker
when a company in Spain sends its employee to another country on a temporary basis, for no more than one year (may be extended by one further year). In this case, you will continue to make Social Security contributions in Spain.
You are a posted self-employed worker
As in the case above, you can work for a maximum of two years abroad and remain affiliated to the Spanish system; however, you’ll need to inform Social Security in advance.
You are neither a posted worker nor a posted self-employed worker
This is when you go abroad to work for a company from that country, for which reason you will make contributions not in Spain but in the country you are working in. The same applies if you register as a self-employed person in another country.
In these circumstances, bear in mind that whatever you contribute abroad cannot be transferred to Spain, but will be used for claiming benefits in that country.
However, if you make Social Security contributions in another EU country, these contributions will be taken into consideration when claiming benefits in another EU country. So, for example, if somebody goes to work in Germany, whatever contributions they make there will used for claiming unemployment benefits in Spain and calculating their state pension.
For further details, you may be interested in reading our post on "Social Security Aspects of International Postings.".
If you have employees you need to transfer abroad, remember that we at GD Global Mobility can help you with your company’s expatriation policies and with expatriate taxation and international Social Security.
If you need further details about how you can make Social Security contributions in Spain while working abroad or if you have any questions about international Social Security, contact us.