In the next few days, many sole traders and self-employed persons will find a letter from the Social Insurance Institution in their mailbox or email. This is the annual notification that tells you whether or not you are obliged to pay social security contributions from 1 July.
The letter is based on information from your 2024 tax return. If you have exceeded the income limit, you are liable to pay premiums. The obligation arises for those sole traders and self-employed persons who have earned more than €8,580 in income for 2024. If you have an income above this threshold, the letter will tell you the specific amount of your monthly contributions and all the necessary payment details. If you earned less than the statutory limit for 2024, you will not be liable for the levy.
Those who have filed a tax return by 31 March and are liable to pay the new amount of tax for the month of July will pay the new amount of tax for the month of July by 8 August at the latest. If you have submitted your tax return within the extended deadline, the Social Insurance Institution will send you the information on your contributions later
If you’re just starting your trade, you won’t get this letter yet – you won’t be assessed until after the first tax return you file.
