A recent court ruling has paved the way for greater compatibility between retirement and business activities without compromising the right to a full pension. According to this ruling, as long as the work performed does not generate income exceeding the Minimum Interprofessional Salary (SMI) annually, pensions and business activities can coexist without penalties.
This milestone arose from the case of a worker who applied for retirement while wishing to maintain her role as an administrator of a company in which she owned 50% of the shares. This decision establishes a more flexible framework for those who want to remain connected to their business without having to give up their pension.
To avoid potential conflicts with Social Security, it is advisable for self-employed individuals wishing to take advantage of this possibility to review their situation with specialized advisors. Initially, the National Institute of Social Security (INSS) rejected her application arguing the incompatibility of her position as an administrator with the full receipt of the pension.
The Superior Court of Justice of Andalucia (TSJA) upheld a ruling that allows corporate self-employed individuals to receive 100% of their retirement pension without having to relinquish the management of their own company. It is crucial that the roles do not generate considerable additional income or involve direct operational management for the compatibility to be valid according to the ruling.
