If, as a self-employed person, you are unable to work due to temporary incapacity and this is due to an occupational illness or an accident at work, you will receive 75% of the basic regulatory amount from the day after the accident or illness. In other cases, you are not entitled to benefits for the first 3 days. From the 4th to the 20th day, you will receive 60% of the basic regulatory amount, and from the 21st day, you will receive 75% of the basic regulatory amount.
With the minimum contribution as "autónomo", this basic regulatory amount is €960.60. From this amount, during the time you cannot work, you still have to pay the "autonomo" contribution every month. The amount remaining is therefore minimal, so it is important to further cover this risk by taking out temporary disability insurance. This is called "Renta" insurance in Spain.
With a “Renta¨ insurance, a fixed amount per day is set and you can choose whether or not there is a waiting period on the policy and how long you will receive payment, up to two years. Determining the waiting period depends on when you face loss of earnings. For some this is earlier than others. If you have a business partner, or staff who can take over tasks for you for a certain period of time, you will be "expendable" for longer than if, for example, you have a hairdressing salon and actually face loss of earnings from the first day you are unable to work.
A perhaps lesser-known reason to take out disability insurance is for hedging against the possible long-term illness of a staff member. Imagine that, as a small business owner, you have to deal with an employee falling ill for a long time. This can have major economic consequences for you as an employer, because besides having to continue paying the employee for a large part, you also have the additional costs of hiring a replacement staff member.
Of course, the premiums depend on occupation and age, but to get an idea, we list two examples below:
Policyholder and beneficiary: Employer
Insured: Administrative assistant
Sum insured per day: €30
Waiting period: 30 days
Max. benefit: from day 31 to day 730
Monthly premium: 15€
Policyholder, insured and beneficiary: Self-employed person
Sum insured per day: 40€
Waiting period: 15 days
Max. benefit: from day 16 to day 730
Monthly premium: 40€
Does a "Renta" insurance also have any tax advantages? Yes, depending on each person's situation, as a self-employed person, €500 is usually tax deductible.