If you’re thinking about going freelance in Spain, you’ve probably heard people mention the Tarifa Plana. It’s one of the main financial benefits offered to new autónomos, and for many, it’s what makes self-employment affordable in the early months.
So, what is it, who gets it, and how does it actually work?
What is the Tarifa Plana 1st year discount for autónomos?
Tarifa Plana is a reduced Social Security payment for new autónomos in Spain. Normally, self-employed workers have to pay a fixed monthly fee to la Seguridad Social, even if they earn nothing. This base rate can be over 300 euros a month.
The Tarifa Plana lets you pay a reduced monthly rate of 80 euros for the first 12 months instead of the full amount.
Who can get it?
To qualify, you need to meet a few conditions:
- You are registering as an autónomo for the first time, or it has been at least two years since you were last registered (three years if you claimed the Tarifa Plana before)
- You register under the regular Régimen Especial de Trabajadores Autónomos (RETA)
- You do not have a company or partnership, you are registering as an individual
This applies whether you are Spanish or a foreigner living legally in Spain. You just need to have an NIE and be legally allowed to work.
How much is the Tarifa Plana?
As of 2023, the Tarifa Plana cuota is:
- First 12 months: 80 euros per month
Do you have to apply?
You do not have to fill out a separate application, but you or your gestor must tick the right boxes when registering as autónomo with Social Security. If you are registering online through the Importass system, there is a section where you choose the Tarifa Plana if you qualify.
If you are using a gestor or a platform like Xolo or Declarando, they will usually handle this for you.
Not pausable: baja will cancel the Tarifa Plana
You only get one shot at the Tarifa Plana. If you register as an autónomo, claim the reduced rate, and later go baja (deregister), you lose the benefit. When you re-register, you will go back to paying the full monthly cuota, unless you have waited the required amount of time.
That means two years if you did not use the Tarifa Plana the last time, and three years if you did.
So unless you are closing your business for good, it is usually better to stay registered, even if your income dips. Once you lose the flat rate, you cannot get it back straight away.
Is it worth it?
Yes. If you are just getting started as a freelancer, the Tarifa Plana saves you hundreds of euros in your first year. That breathing room can make a big difference while you build up clients or get your business off the ground.
But do not let the discount fool you into thinking that is your only cost. You still have to:
- Pay your gestor
- File quarterly VAT returns if you charge VAT
- Make income tax prepayments using modelo 130
- Keep good records for your annual renta tax return
The Tarifa Plana lowers your Social Security payments, but it does not cancel out your other obligations.
Can I extend the Tarifa Plana?
Actually yes, it’s possible to extend for another 12 months.
- You can request an extension of the flat rate if you anticipate that your earnings will be lower than the minimum wage
- Generally speaking, if you enjoyed the flat rate after January 1, 2023, you can request a 12-month extension if you have a recognised disability of 33% or more
- Or you can request an up to a 36-month extension if you are a victim of gender-based violence or terrorism
- You can apply before the 12-month period expires, or if applicable, 24 months
Bottom line
Tarifa Plana is a useful incentive to get started as an autónomo in Spain. If you are eligible, it makes your first year much more affordable.
Just remember it is temporary, you only get one go at it, and it does not cover your taxes. If you are unsure whether you qualify or how to set it up, speak to a gestor or use a digital tool that can handle the process for you.
