The Social Security system in Spain offers a flat rate contribution scheme for self-employed individuals, typically lasting for an initial period of 12 months from the initial registration at the Spanish social security as a self-employee. However, for those whose net income does not exceed the Minimum Interprofessional Wage (SMI), an extension of this flat rate is available, providing crucial support during the early stages of entrepreneurship.
For more information about the social security rates please look at our guide in this regard.
Requirements for the Flat Rate Extension
To qualify for the extension, applicants must meet the following conditions:
- Completion of the Initial Flat Rate Period: The applicant must have benefited from the first 12 months of the flat rate scheme.
- Retention of Entitlement: The applicant must not have lost the right to the flat rate due to any irregularities.
- Timely Application: The extension request must be submitted before the initial 12-month period ends. Exceptions are made for specific groups, such as self-employed individuals in municipalities with fewer than 5,000 inhabitants, disabled self-employed workers, and victims of gender violence or terrorism, who may apply before the 24-month period ends.
- Income Threshold: The applicant’s net income must be below the current SMI.
What is the Minimum Interprofessional Wage (SMI)?
The SMI sets the minimum wage a worker must receive for their employment. For 2025, the SMI is set at €1,184 gross per month over 14 payments, equating to an annual income of 16,576€
Application Process
Applications for the extension can be submitted online using a digital certificate via the Social Security portal.
What Can I Do if I do not want the Flat Rate Extension
Self-employed individuals who anticipate earning above the SMI during the second year of activity can voluntarily opt out of the flat rate scheme.
- Effective Date: The opt-out takes effect on the first day of the month following the request. For example, a request made on 15th February would take effect on 1st March.
- Failure to Opt Out: If the extension is not voluntarily opted out and income exceeds the SMI, Social Security will require the individual to regularise their situation by paying the difference between the regular contribution and the flat rate amount.
Applications for opting out of the flat rate can be submitted through the “Sistema Red” section on the Social Security website. For more information about self-employment, please check out our guide.
