New order in Spain - for Workers Posted Abroad

New order IN SPAIN ISM/835/2023 that regulates the situation assimilated to Social Security enrollment for Workers Posted Abroad

On Saturday, July 22, the ISM/835/2023 Order was published in the BOE, regulating the situation equivalent to being in the Social Security system for workers dispatched abroad to serve companies operating in Spanish territory.

With the increase in the internationalization of companies and the dispatch of workers abroad, the previous regulations from the Ministry of Labor in 1982 had become outdated.

The purpose of this order is to regulate the scope and conditions of the situation equivalent to being in the Social Security system in the event of workers being dispatched to serve their companies outside the national territory.

Scenarios equivalent to being in the Social Security system

In accordance with Article 3 of the ISM/835/2023 Order of July 20, the scenarios equivalent to being in the Social Security system in which workers are enrolled are as follows:

• Dispatch of workers to a country where an international instrument for coordinating Social Security systems does not apply.
• Dispatch of workers to a country where, even though an international instrument for coordinating Social Security systems applies, they are not included within its subjective scope, as it only refers to nationals of each of the parts.
• Dispatch of workers to a country where an international instrument for coordinating Social Security systems applies, which foresees the application of the Social Security legislation of the home country during the dispatch, once the maximum duration period provided for has been exhausted, including any authorized extensions, if provided for in the respective international instrument.
• Dispatch of workers to a country where, even though an international instrument for coordinating Social Security systems applies, it does not provide for the dispatch of workers by their companies to the territory of the other part.

This new Order represents a change from the current options and provides new opportunities to design expatriation strategies. The Order comes into effect on November 1, 2023, and a transitional regime has been established.

At ExpatFeliu, we are at your disposal to advise you on this new regulation and to analyze the situation of each expatriate individually based on this Order, as well as to design the best expatriation strategy for new assignments

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