At GD Global Mobility we manage the signing of the special Social Security agreement for expatriate workers who stop contributing in Spain, so that they do not suffer losses to their future retirement benefits.
It is important to evaluate how an expatriation will affect a professional who contributes in two or more countries in order to determine future retirement benefits, and the possibility of signing a special agreement to avoid detriment.
What is a special expatriate agreement?
The special agreement with Social Security generates, maintains or extends the right to Social Security benefits in cases where workers suspend their employment relationship, and hence their benefits, in Spain due to a temporary posting in which they have to contribute to the Social Security of the host country. This special agreement allows the worker to assimilate registration and maintain their contributions with bases similar or equal to those they had before leaving.
This is important because the regulatory base that will determine the amount of retirement benefit takes into account the amount of what is actually paid, and, in the case of absences (in the case that the worker is posted and Spanish Social Security benefits are suspended) a hiatus in contributions may be applied, resulting in a decrease in the regulatory base.
When should it be applied?
A special agreement needs to be signed in the case of travelling to a country with which Spain has signed a bilateral Social Security agreement, but the immigration legislation of that country requires a local employment contract, which implies tax contributions in the destination.
What are the requirements for a special Social Security agreement?
As a requirement for the agreement, the person being posted abroad is required to have 1080 days paid up in the 12 years prior to the request.
The request must be made voluntarily by the worker. It is made through a form that must be submitted in the ordinary period of 90 days from the date of termination, or, alternatively, in the extraordinary period of 1 year from termination (but with effects that will begin on the day of submission).
If you need to sign a special Social Security agreement or you are in a similar situation, contact our team of international mobility experts now. We can advise you on the different agreements and carry out corresponding procedures on your behalf.