Starting your own business comes with plenty of challenges—and costs. Thankfully, the Spanish government offers some relief for new freelancers through the “tarifa plana” (flat rate): a reduced monthly social security payment of €80 during the first 12 months of activity. But did you know that this benefit can be extended for another 12 months under certain conditions?
In this article, we’ll walk you through who can apply for the extension, what requirements must be met, and how to submit your request to continue saving in your second year of business.
Who Can Benefit from the Flat Rate Extension?
The extension of the flat rate into the second year is available to self-employed workers whose net annual income does not exceed the Minimum Interprofessional Wage (SMI).
Here’s where it gets a bit nuanced: you may have earned more than the SMI in your first year and still qualify for the extension—because what matters is your income during the second year.
For 2024, the SMI is set at €1,134/month, so your net monthly earnings (after deducting allowable business expenses) must remain below this threshold for the entire second year.
Special Cases
Certain groups are automatically entitled to 24 months of the flat rate, regardless of income:
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People with disabilities
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Victims of terrorism
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Women who are victims of gender-based violence
These groups can also request additional extensions for up to 36 more months as long as their income stays below the SMI.
What Are the Requirements for Extending the Flat Rate?
To qualify for the extension in your second year, you must meet three key requirements:
1. Stay Below the SMI in Net Income
Unlike the first year—where no income conditions apply—your earnings must stay under the SMI during the entire 12-month extension.
If you go over the limit in any single quarter, you’ll lose the right to the benefit and must pay back the difference in contributions.
Tip: If you anticipate your income growing during the second year, you can voluntarily opt out of the extension to avoid surprises from Social Security.
2. Be Up to Date with Social Security and Tax Payments
You must not have outstanding debts with either Social Security or the Tax Agency. Any unpaid amounts will disqualify you from the extension.
3. You Must Actively Apply for the Extension
Here’s a common mistake: many self-employed workers assume that meeting the requirements is enough and that the extension is automatic. It’s not.
You must submit a formal request to benefit from the additional 12 months.
How to Apply for the Flat Rate Extension
Applying for the extension is straightforward. Just follow these steps:
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Log in to the “Importass” portal on the Social Security website
Use your digital certificate, Cl@ve PIN, Cl@ve Permanente, or even SMS authentication. -
Complete the application form
You’ll need to enter your personal and tax information, and declare that your net income does not exceed the SMI. -
Submit the form
Double-check your details before submitting. After confirmation, save a copy of the submission receipt.
What Happens After You Apply?
Once submitted, Social Security will review your request to ensure you meet the criteria.
If everything checks out, you’ll receive official confirmation that your flat rate has been extended for one more year.
Important: Make sure you apply before the end of your first year. If you miss the deadline, you won’t be able to benefit from the extension.
Final Thoughts
Extending the flat rate is a smart move for freelancers looking to ease their financial burden during the crucial early years of business. With potential savings of €960 over 12 months, it’s worth the effort.
Make sure you:
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Monitor your income carefully,
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Stay on top of payments,
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And most importantly—submit your request on time.
It’s a practical and valuable tool to help you build a more sustainable freelance career in Spain.
