What is el paro?
“El paro” is the standard term for unemployment benefits in Spain. It is available for autónomos, but not widely promoted, and it’s tricky to find clear information about how to apply. The version of paro that applies to the self-employed is called “cese de actividad”. This is financial support you can access when you permanently (or in some cases temporarily) stop working as a freelancer or sole trader in Spain.
If you meet the requirements, you can access paro while you look for employment or prepare to start again, possibly with a different type of contract, for example, as a TRADE (a self-employed worker who gets 75% or more of their income from one client).
To qualify, you must have been registered as an autónomo and have paid your Social Security contributions continuously for at least the previous 12 months. You must also be up to date with your payments at the time of applying.
What is “cese de actividad”?
“Cese de actividad” means “cessation of activity.” In this case, it refers to the situation where an autónomo stops working and applies for financial support — similar to unemployment benefits for salaried workers. You need to officially deregister (go baja) and prove that your business has stopped for a valid reason recognised by law.
Valid reasons that may qualify you for “cese de actividad” and paro
- A sustained drop in income (generally a 60% loss compared to the previous year)
- Force majeure (such as a natural disaster or a public health emergency)
- Loss of a required licence to operate, as long as it was not revoked due to a sanction
- Divorce or separation where both partners worked in the same business
- Gender violence that forces you to stop working
- The end of a dependent contract if you were working as a TRADE
When and how to apply for “cese de actividad”
You must apply no later than the last day of the month following the cessation of your business activity. For example, if you go baja on 10 March, you must submit your application by 30 April. Applications submitted after this deadline may result in you losing benefit days or being denied altogether.
The application is made through your mutua (mutual insurance provider) or through Social Security (Instituto Nacional de la Seguridad Social/INSS) in certain cases. You will need to submit evidence, such as financial records or documents proving loss of income or force majeure.
What happens if you’re approved?
If accepted, you’ll receive monthly payments based on your average contribution base over the last 12 months. This is typically 70% of your base. The duration of the benefit depends on how long you’ve been paying into the system, and can range from 4 months to a maximum of 24 months.
During this time, you’ll also be required to sign a commitment to actively seek employment or training. You cannot continue invoicing while receiving the benefit unless you’re covered under an exceptional arrangement such as partial cessation (which applied during COVID-19, for example).
Paro is not automatic for autónomos
Unlike salaried workers, autónomos must apply actively and meet all legal conditions. If you’re behind on your Social Security payments, you may still be eligible if you regularise the debt within 30 days of applying, this is known as the “invitación al pago” (invitation to pay).
Bottom line
Autónomos do have access to a form of paro, but it requires preparation. Make sure you understand the legal grounds, gather evidence, and submit everything on time. If you think you may need to stop working, speak to your gestor as soon as possible to avoid missing out on support you’re entitled to.
