Can I defer my Social Security debt?

Deferring a Social Security debt is a situation that anyone may face…

A debt with Social Security can easily get out of hand, because many factors beyond your control can contribute to it. But don’t worry: in certain cases you can apply to defer this debt… And in this article we want to explain everything you need to know to complete this procedure without any problems.

Which debts can be deferred

However, you cannot defer payment of just any debt you may have. Some debts cannot be deferred under any circumstances and must be paid within the period established for that purpose.

The debts eligible for deferral are the following:

• Social Security debts subject to collection management. These include contributions, contribution-related resources, and surcharges on them.

• Surcharges on cash benefits arising from occupational accidents and occupational diseases due to a failure to implement safety measures. In this case, the amounts must be fully secured by a guarantee (aval).

On the other hand, some debts cannot be deferred:

• Contributions for occupational accidents and occupational diseases.
• Contributions payable by employees or persons treated as employees.

Contributions that cannot be deferred must be paid within one month of notification of the decision granting the deferral.

How to complete the deferral form

You can complete the form either on paper, printing it and filing it in person at one of the offices of the General Social Security Treasury (Tesorería General de la Seguridad Social), or online through the Social Security e-Office (Sede Electrónica de la Seguridad Social).

This document must include the following:

• Personal details of the applicant.
• Bank details.
• Grounds for the application.
• Identification of the debts to be deferred.
• Proposed repayment schedule.
• Guarantee offered.
• Address for notifications.
• Supporting documents provided.
• Date and signature.

Where to file it

If you wish to file it in person, the application must be addressed to the Provincial Office of the General Social Security Treasury (Dirección Provincial), the Social Security Administration Office (Administración de la Seguridad Social), or the Social Security Enforcement Collection Unit (Unidad de Recaudación Ejecutiva) where the employer or the person liable for payment has their contribution account (cuenta de cotización) authorized. Failing that, it may also be filed at the office corresponding to their address.

A deferral may also be requested from Social Security using a digital certificate. If you have a digital certificate, you can submit your application through the procedure “Deferral of payment of debts to Social Security” on the Social Security e-Office.

Deadlines for filing the form

You may file the form at any time, provided that the total deferral period does not exceed five years.

Conditions for applying for a deferral

Deferral of debts is granted subject to the following conditions:

• Guarantees. If the total amount of the debt is less than €30,000, Social Security does not require payment guarantees. Nor is it necessary to provide guarantees if the debt exceeds €30,000 but is less than €90,000, the payment period is less than 2 years, and 30% of the debt is paid within the 10 days following notification of the approval of the deferral.

• Payment period. The payment period and the resulting installments are negotiated with the authorities. However, under no circumstances may it exceed 5 years.

• Interest rate. The interest rate applicable to the deferral is the official interest rate.

Requirements for the deferral

To apply for a deferral of Social Security debts, the following requirements must be met:

• Having debts with Social Security.
• The outstanding amount must be eligible for deferral.
• Filing the deferral application together with the required documentation.
• Any non-deferrable debts must have been paid in full.
• Existence of guarantees.
• Payment of current contributions.

Nor may a deferral be requested where a debt with Social Security is deemed uncollectible and the debtor is bankrupt.

Decision on the deferral application

Social Security will issue its decision within 3 calendar months of receipt of the application.

Applications will be rejected in the following cases:

• Where there has been non-compliance with previously granted deferrals.

• If, at the time of the application, the sale of attached assets has already been authorized.

• Where the amount of the deferrable debt does not exceed twice the national minimum wage (SMI) in force.

If the requirements and conditions are met, paying Social Security debts in installments will have the following effects:

• Suspension of the collection procedure for the debts that have been deferred.

• The debtor will be deemed to be up to date with their payment obligations to Social Security.