The Supreme Court clarifies when a self-employed person with low income must register with the RETA (Special Regime for Self-Employed Workers).
In recent years, the question of whether a self-employed worker with low income should be registered in the Special Regime for Self-Employed Workers (RETA) has generated many doubts.
26/01/2026
In recent years, the question of whether a self-employed worker with low income must register with the Special Regime for Self-Employed Workers (RETA) has generated much confusion among professionals, entrepreneurs, and pensioners who carry out activities irregularly or with low incomes. Urban legends about not having to register if earning less than the Minimum Interprofessional Wage (SMI) have spread widely, but the Supreme Court's jurisprudence (STS No. 941/2025, of July 10, 2025) has clarified the matter and established clear criteria that are important to know to avoid penalties and problems with Social Security, and at Puigverd Assessors we explain it to you.
Therefore, the first point to understand is that there is no automatic income threshold that exempts self-employed individuals from the obligation to register with the RETA (Special Regime for Self-Employed Workers) . A self-employed person can earn less than the minimum wage and still be required to register if their activity meets certain requirements.
The recent Supreme Court ruling directly addresses this issue and provides legal precedent for interpreting regulations concerning self-employed individuals with low incomes. This precedent is particularly relevant for people who combine various activities with other jobs, as well as for pensioners who perform occasional work.
One of the most important conclusions of the ruling is that earning less than the minimum wage does not automatically mean that registration with the RETA (Special Regime for Self-Employed Workers) is not required . In other words, simply comparing one's income to the minimum wage threshold is not enough to determine the obligation to register.
The Supreme Court emphasizes that the key element for being considered self-employed is the "habitual" nature of the activity , not just the amount of income. Therefore, a person who provides services on a recurring or continuous basis , even with modest earnings, could be required to register as self-employed.
This means that the activity will be valued not only by the euros earned, but by the worker's behavior : if there is a certain regularity, continuity, organization and profit-making purpose, it will be considered that there is an activity that requires registration in the RETA.
The Court's key interpretation is that habitual activity is not measured solely by a monetary figure . In this sense, the Supreme Court emphasizes three elements that must be assessed to define whether an activity is habitual:
This interpretation avoids reducing the rule to a simple comparison with the minimum wage and requires assessing the context in which the activities take place. Ultimately, a regular activity may require registration in the Special Regime for Self-Employed Workers (RETA), regardless of whether income is above or below the minimum wage .
The case law that can be interpreted for the pensioners' group is very important because it offers considerable legal certainty : if net income is below the minimum wage, the retiree can combine their pension with self-employment activities without needing to be registered or contribute to the RETA (Special Regime for Self-Employed Workers) .
Attention : The compatibility of receiving a retirement pension with self-employment work whose total annual income does not exceed the minimum wage does not apply to pensioners who, due to their position in a commercial company, have effective control of it , and therefore they are registered in the RETA (Special Regime for Self-Employed Workers).
In practice, this means that when comparing with the minimum wage, one must consider earnings after deducting all expenses related to the business activity . This emphasizes the self-employed worker's actual economic capacity.
If a person issues invoices periodically or recurrently for professional activities, even with low income, they may be required to register .
On the other hand, if the work is clearly occasional or one-off, without continuity or its own organization, it is less likely that registration will be required.
This makes it easier for retired people to supplement their economic activity without being subject to additional contributions when income is low.
Given the complexity of this regulatory framework, having a professional advisor like Puigverd Assessors is essential to evaluate each case individually, avoid penalties, and ensure proper compliance with Social Security obligations.
What is registration in the RETA and who should do it?
The RETA is the mandatory Social Security contribution scheme for individuals who carry out self-employed economic activities on a regular, personal, and direct basis , for profit. This obligation is independent of the amount of income earned: it is the activity itself that determines the obligation, not just the resulting financial figure.Therefore, the first point to understand is that there is no automatic income threshold that exempts self-employed individuals from the obligation to register with the RETA (Special Regime for Self-Employed Workers) . A self-employed person can earn less than the minimum wage and still be required to register if their activity meets certain requirements.
The low-income and high-income controversy: what does the Supreme Court say?
The recent Supreme Court ruling directly addresses this issue and provides legal precedent for interpreting regulations concerning self-employed individuals with low incomes. This precedent is particularly relevant for people who combine various activities with other jobs, as well as for pensioners who perform occasional work.
1. Income below the minimum wage does not, in itself, eliminate the obligation to register
One of the most important conclusions of the ruling is that earning less than the minimum wage does not automatically mean that registration with the RETA (Special Regime for Self-Employed Workers) is not required . In other words, simply comparing one's income to the minimum wage threshold is not enough to determine the obligation to register.
The Supreme Court emphasizes that the key element for being considered self-employed is the "habitual" nature of the activity , not just the amount of income. Therefore, a person who provides services on a recurring or continuous basis , even with modest earnings, could be required to register as self-employed.
This means that the activity will be valued not only by the euros earned, but by the worker's behavior : if there is a certain regularity, continuity, organization and profit-making purpose, it will be considered that there is an activity that requires registration in the RETA.
2. Habituality as a determining criterion
The Court's key interpretation is that habitual activity is not measured solely by a monetary figure . In this sense, the Supreme Court emphasizes three elements that must be assessed to define whether an activity is habitual:
- Temporal continuity : if the activity is carried out repeatedly or regularly, even if with low income.
- Minimal organization : if there is some structure or dedication, even if it is partial.
- Economic purpose : if there is a clear intention to provide services with a profit objective.
This interpretation avoids reducing the rule to a simple comparison with the minimum wage and requires assessing the context in which the activities take place. Ultimately, a regular activity may require registration in the Special Regime for Self-Employed Workers (RETA), regardless of whether income is above or below the minimum wage .
3. The specific exception for pensioners
One of the most relevant aspects of the ruling is the regulatory distinction for pensioners who are self-employed . In this case, the entry in Article 213.4 of the General Social Security Law establishes a clear criterion: if a pensioner's net annual income does not exceed the minimum wage, there is no obligation to contribute and registration in the Special Regime for Self-Employed Workers (RETA) is not required .The case law that can be interpreted for the pensioners' group is very important because it offers considerable legal certainty : if net income is below the minimum wage, the retiree can combine their pension with self-employment activities without needing to be registered or contribute to the RETA (Special Regime for Self-Employed Workers) .
Attention : The compatibility of receiving a retirement pension with self-employment work whose total annual income does not exceed the minimum wage does not apply to pensioners who, due to their position in a commercial company, have effective control of it , and therefore they are registered in the RETA (Special Regime for Self-Employed Workers).
4. Calculation of income: net and not gross
Another important point established by the Court's doctrine is that income must be valued in net terms , that is, after deducting the expenses necessary for carrying out the activity. This interpretation follows the logic of tax regulations and prevents the use of gross revenue as a reference, as it does not reflect the true profitability of the activity.In practice, this means that when comparing with the minimum wage, one must consider earnings after deducting all expenses related to the business activity . This emphasizes the self-employed worker's actual economic capacity.
Practical applications: what to keep in mind?
The doctrine established by the Supreme Court directly impacts various groups.
Self-employed non-pensioners with low incomes
For self-employed individuals who are not pensioners, income below the minimum wage does not automatically exempt them from the obligation to register with the Special Regime for Self-Employed Workers (RETA) . What determines the obligation is the regularity of the activity. For example:If a person issues invoices periodically or recurrently for professional activities, even with low income, they may be required to register .
On the other hand, if the work is clearly occasional or one-off, without continuity or its own organization, it is less likely that registration will be required.
Pensioners and pension compatibility
For pensioners who are self-employed, the rule is clearer : if their annual net income does not exceed the minimum wage , it is not necessary to pay social security contributions or register with the RETA (Special Regime for Self-Employed Workers), as provided for by social regulations, with the exception indicated for retirees who are part of a commercial company and have control of it.This makes it easier for retired people to supplement their economic activity without being subject to additional contributions when income is low.
Given the complexity of this regulatory framework, having a professional advisor like Puigverd Assessors is essential to evaluate each case individually, avoid penalties, and ensure proper compliance with Social Security obligations.