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Glossary entry · The silent subtractors
Social Security (Spain)
Definition
A flat-rate contribution (around 6.48% for employees in 2024) deducted from gross salary up to a monthly cap. It funds the Spanish public pension system, unemployment benefits, and parts of public healthcare. The employer pays a much larger contribution on top.
Example
On a €35,000 gross salary, the employee Social Security contribution is roughly €2,268/year (~€189/month).
Related
The silent subtractors
Fee
A charge taken from your investment by a fund, broker, or advisor, every year, forever.
Read →Tax
The other silent subtractor. Almost every gain you make is taxed somewhere.
Read →Expense ratio
The annual fee a fund charges, expressed as a percentage of your investment.
Read →Commission
A fee charged by a broker each time you buy or sell. Mostly $0 with modern brokers.
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