How does the flat rate for self-employed workers work in 2024?

After Royal Decree-Law 13/2022 entered into force, a new contribution system was established for self-employed workers. This Royal Decree-Law included a series of amendments that affected self-employed workers on the flat rate (Tarifa Plana). How does the flat rate for self-employed workers work in 2024?

The flat rate for self-employed workers is a measure under which a reduced monthly contribution is paid to Social Security for one or two years.

It applies before the self-employed worker joins the new system of contributions based on actual income.

Requirements for obtaining the flat rate for self-employed workers

The Social Security flat rate for self-employed workers, or reduced contribution, is intended for all new entrepreneurs who register as self-employed. To qualify for this initial support, you must meet a number of conditions:

• Not having been registered as self-employed in the last 2 years (if you have already benefited from this contribution relief [bonificación], the period increases to 3 years).

• Not being a collaborating self-employed worker (autónomo colaborador). Collaborating workers (family members) have their own forms of relief.

• Being up to date with the tax authorities and Social Security. If you owe either of them any debt, you will not be able to access the relief. If you want to avoid surprises, request a certificate confirming that you are up to date with Social Security; the online procedure is very simple.

Flat rate for self-employed workers registered in 2023

The flat rate for self-employed workers in 2023 reflects changes compared with previous years. In fact… it has ceased to exist as such! Although people still call it the flat rate, be aware that they are referring to the reduced contribution of €80.

The switch to a payment model based on the actual income of self-employed workers in turn brought about a change in the self-employed contribution.

As a result, the amount payable was set as follows:

• First 12 months: The monthly contribution is €80 for those who contribute on the minimum contribution base.

• From month 12 to month 24: Individuals whose income during the second year does not exceed the national minimum wage (SMI) pay €80. If the SMI is exceeded, the contribution corresponding to their contribution bracket based on their net income applies. In other words, the relief is lost.

This means that, for individuals who had low income in previous years, the contribution will be lower. By contrast, those with income above the SMI will no longer benefit from the second year of the flat rate.

Flat rate for self-employed workers in 2024

The conditions of the flat rate for new self-employed workers have not changed in 2024, but there is a progressive tax in place since 2023 that will slightly increase the amount of the contribution: the MEI.

The MEI, or Intergenerational Equity Mechanism (Mecanismo de Equidad Intergeneracional), is a tax that affects both self-employed workers, regardless of the year in which they registered as self-employed, and employees.

The MEI is the main reason why new self-employed workers saw last year that their self-employed contribution bill was higher than the €80 promised under the flat-rate measure. In the vast majority of cases, the contribution was around €85, and in 2024 it will go up by another euro or so.

Extension of the flat rate for self-employed workers in the second year

If you meet the requirements to extend the flat rate for a further 12 months, you must notify Social Security one month in advance through Importass.

Zero contribution in several Autonomous Communities

In 2023, several Autonomous Communities (regions) launched the zero contribution (cuota cero), or zero rate (tarifa cero). In 2024, this measure has spread to more regions across Spain.

The zero contribution means a refund of the full amount paid in self-employed contributions by those who have opted for the reduced contribution, which represents a saving of €1,000 a year. Depending on the Autonomous Community, this measure applies for one or two years.

The Autonomous Communities that have applied or announced the zero contribution for new self-employed workers are the following: Andalusia, Murcia, the Canary Islands, Extremadura, Galicia, and Madrid.

In certain Autonomous Communities, it is possible to extend the flat rate for self-employed workers.

For example, in Cuenca, Soria, and Teruel, the reduced contribution lasts three years, regardless of whether the annual SMI is exceeded in the first year. This is a special measure focused on depopulated Spain (la España vaciada).

Self-employed workers with disabilities

Self-employed workers with a degree of disability of 33% or higher may benefit from the flat rate for a further 36 months. In other words, the relief will extend to 5 years.

From the third year onward, the amount they will pay will be €160 instead of the €80 of the flat rate. This figure is still considerably lower than the contribution paid by self-employed workers without relief.

Corporate self-employed workers

Corporate self-employed workers (autónomos societarios) may benefit from the flat rate like any other self-employed worker.

Self-employed workers engaged in multiple activities

In addition, self-employed workers engaged in multiple activities (pluriactividad), that is, those who work as employees and as self-employed workers at the same time, may also apply for the flat rate in 2024 for a period of 3 years.

In addition, self-employed workers under 30 and self-employed women under 35 may apply for it (with a 1-year extension) compared with other self-employed workers.

• Self-employed workers who also work full-time as employees: may benefit from a 50% reduction in the contribution base during the first 18 months. From months 19 to 36, that reduction will be 25%.

• Self-employed workers who also work part-time as employees for more than half the working day: may apply a 25% discount on the contribution base during the first 18 months. From months 19 to 39, that reduction will be 15%.

Municipalities with fewer than 5,000 inhabitants

Self-employed workers who carried on their business activity in a municipality with fewer than 5,000 inhabitants could access the rural flat rate, with special relief on the payment of contributions. Since 2023, this measure no longer exists at the national level.

However, certain Autonomous Communities continue to offer incentives for entrepreneurship in depopulated or rural areas, and there are quite a few of them. This was the case with the Valencian Community last year, as well as Castile-La Mancha, Asturias, Aragon, and Castile and León.

If you do not live in one, do not try to register as a resident there (empadronamiento) to access it, because it will be of no use, as there is a waiting period.