Q&A: What is Spain's flat fee for new self-employed workers?
Did you know that new autónomos in Spain can benefit from paying lower social security rates? Here's what you need to know about how the 'tarifa plana' works, how to pay even less and some of the conditions few self-employed know about.
If you know anything about being self-employed in Spain, you'll probably be aware that it's tough and that you'll typically be paying a lot more in fees and taxes than you do back home.
This is mostly down to the social security fees, which are among the highest in the whole of the EU.
Thankfully, in order to help out those who are newly self-employed in Spain, the government has introduced a benefit called the tarifa plana.
READ ALSO: Will you pay more under Spain's new social security rates for self-employed?
Q: What is the tarifa plana?
A: It’s basically a lower rate of social security especially for new autónomos. It’s a reduced quota for either the first one or two years. The idea is to help those out who are registering as self-employed in Spain for the first time.
It aims to reduce the financial burden of having to pay high social security fees each month when you're only just starting to grow your business.
Q: How much is this reduced rate?
A: The tarifa plana for 2024 is a flat fee of €80 per month, instead of having to pay the rates depending on how much you earn.
These can range from €225 per month for the lowest earners up to €530 per month for the highest earners, so you can see that by only paying €80, it’s a big saving.
Q: Who is eligible for the tarifa plana?
A: Those who register as autónomo or self-employed for the first time in 2024 can request to be put on the tarifa plana when they sign up.
The requirements are:
- Not having been registered in the 2 years immediately prior to the effective date of the new registration, or 3 years, if you have previously benefited from it.
- Not being a self-employed collaborator – eg not being part of a cooperative.
- Not having outstanding debts with Social Security or the tax authorities.
Q: How long will I be able to pay the reduced fee?
A: You will be able to be on the reduced rate for the first 12 months, regardless of how much you earn during that time.
During the second year of being self-employed in Spain, you will be able to continue paying the €80 flat fee only if your income is less than minimum wage (SMI), which for 2024 is €1,323 gross per month.
You will need to request this extension from the Social Security office if it applies to you. All extension requests must be accompanied by a declaration stating that the net returns expected to be obtained will be lower than the current SMI.
Q: Is there any way I can pay less than this?
A: Yes, in fact a cuota zero has been introduced in several regions of Spain, meaning that your social security fees will be paid for by the local government for the first one or two years.
This is the case if you live in Madrid, Andalusia, Murcia, the Balearics, La Rioja, the Canary Islands, Galicia, Extremadura, Aragón and Cantabria.
Each region has slightly different rules, so it’s important you’re aware of these before you sign up.
If you live in any other region, you will pay the flat €80 fee. This could save you up to €960, so it’s important to think hard about where you want to live if you’re self-employed in Spain.
Q: What happens if I stop being self-employed during the first one or two years?
If you de-register from the autónomo system or darse la baja como autónomo during the first one or two years while you’re on the reduced rate you will lose the right to benefit from it for the next three years.
In other words, if you de-register from the system in August because you don’t expect to earn anything that month and then you re-register again in September, even though a full 12 months may not have passed, you will go directly to the higher income-based fees and will not go back on the tarifa plana.
Therefore, it may actually be in your interest to stay registered if you plan on signing up within one or two months again, as you could end up saving money.
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If you know anything about being self-employed in Spain, you'll probably be aware that it's tough and that you'll typically be paying a lot more in fees and taxes than you do back home.
This is mostly down to the social security fees, which are among the highest in the whole of the EU.
Thankfully, in order to help out those who are newly self-employed in Spain, the government has introduced a benefit called the tarifa plana.
READ ALSO: Will you pay more under Spain's new social security rates for self-employed?
Q: What is the tarifa plana?
A: It’s basically a lower rate of social security especially for new autónomos. It’s a reduced quota for either the first one or two years. The idea is to help those out who are registering as self-employed in Spain for the first time.
It aims to reduce the financial burden of having to pay high social security fees each month when you're only just starting to grow your business.
Q: How much is this reduced rate?
A: The tarifa plana for 2024 is a flat fee of €80 per month, instead of having to pay the rates depending on how much you earn.
These can range from €225 per month for the lowest earners up to €530 per month for the highest earners, so you can see that by only paying €80, it’s a big saving.
Q: Who is eligible for the tarifa plana?
A: Those who register as autónomo or self-employed for the first time in 2024 can request to be put on the tarifa plana when they sign up.
The requirements are:
- Not having been registered in the 2 years immediately prior to the effective date of the new registration, or 3 years, if you have previously benefited from it.
- Not being a self-employed collaborator – eg not being part of a cooperative.
- Not having outstanding debts with Social Security or the tax authorities.
Q: How long will I be able to pay the reduced fee?
A: You will be able to be on the reduced rate for the first 12 months, regardless of how much you earn during that time.
During the second year of being self-employed in Spain, you will be able to continue paying the €80 flat fee only if your income is less than minimum wage (SMI), which for 2024 is €1,323 gross per month.
You will need to request this extension from the Social Security office if it applies to you. All extension requests must be accompanied by a declaration stating that the net returns expected to be obtained will be lower than the current SMI.
Q: Is there any way I can pay less than this?
A: Yes, in fact a cuota zero has been introduced in several regions of Spain, meaning that your social security fees will be paid for by the local government for the first one or two years.
This is the case if you live in Madrid, Andalusia, Murcia, the Balearics, La Rioja, the Canary Islands, Galicia, Extremadura, Aragón and Cantabria.
Each region has slightly different rules, so it’s important you’re aware of these before you sign up.
If you live in any other region, you will pay the flat €80 fee. This could save you up to €960, so it’s important to think hard about where you want to live if you’re self-employed in Spain.
Q: What happens if I stop being self-employed during the first one or two years?
If you de-register from the autónomo system or darse la baja como autónomo during the first one or two years while you’re on the reduced rate you will lose the right to benefit from it for the next three years.
In other words, if you de-register from the system in August because you don’t expect to earn anything that month and then you re-register again in September, even though a full 12 months may not have passed, you will go directly to the higher income-based fees and will not go back on the tarifa plana.
Therefore, it may actually be in your interest to stay registered if you plan on signing up within one or two months again, as you could end up saving money.
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