The Spanish flat-rate for freelancers in 2023: What, how much, and the finer details

Alright, so you're tired of the 9 to 5 grind and are ready to jump into the exciting world of self-employment! 💪 But before you dive in headfirst (and hopefully not into a shallow pool), the government wants to give you a little nudge in the right direction with the flat rate freelance quota.

Basically, if you fall into certain categories like being a newly registered freelancer, a victim of gender violence, a victim of terrorism, or if you live in a small town with less than 5,000 residents, you can get a discount on your monthly fees. It's the government's way of saying "hey, we believe in you and your entrepreneurial spirit!"

Now, the specifics of the flat rate can vary depending on your situation, but don't worry — we've got you covered with all the details. If this article convinces you to live your best freelance life, Xolo is here to help you get started. So let's do this thing! 🚀

What is the freelance quota in Spain?

Before we discuss the flat rate freelance quota, we need to know what the freelance quota is in the first place. Essentially, if you're a self-employed worker in Spain, you have to pay a monthly fee to the social security system. It’s part of the agreement for you to register as a freelancer on the RETA (Special Regime for Self-Employed Workers).

If you already live and work in Spain, you’ll have heard the same lines again and again. "Why do you want to pay to work?! That’s ridiculous!" But hold up, don't let the haters get to you. By registering as a freelancer, you're actually paying for some pretty important benefits. 

Basically, you're getting coverage in five key areas that you might face as a freelancer: 

• Common illness
• Work-related illness or accidents
• Cessation of activity
• Professional training
• Retirement

So, it's not really paying to work, it's paying to protect yourself in case of any unexpected events. Haters are gonna hate, they’re just jealous they can’t take Monday mornings off 😉.

How much is the freelance quota in 2023?

So, you're interested in becoming a freelancer, but how much will you have to fork out every month? Well, let's break it down for you. 

The amount you contribute depends on your net salary — AKA your “contribution base”. In short, this is the amount you bring in, minus your tax-deductible expenses. As opposed to the pre-2023 freelance quota base, there is no level of earnings that exempts you from paying your contribution. 

Here’s a table to show you how much you’ll pay depending on your net income — your gross income minus expenses. Bear in mind that the amount will change gradually until 2025 at the earliest. 

* Difference from the pre-2022 fixed amount.

What is the flat-rate freelance quota?

Okay, picture this: every self-employed person has to cough up a huge amount every single month, right from the get-go. I mean €230 regardless of your income? What do you think will happen? Yeah, some people would probably go rogue and not pay the fee 😈, while others would give up on freelancing and go back to the 9-to-5 grind.

Enter the flat rate freelance quota! This handy reduction in the monthly Social Security contribution is designed to make sure new freelancers don't get scared off by the full contribution. Instead of paying your expected amount, you pay just €80 a month as you get started. How long this deduction lasts will vary depending on each freelancer's situation.

What are the requirements for the flat-rate freelance quota?

Alright, so there are three ways for a freelancer to qualify for the general flat rate, and you only need to meet one of them to get the aid:

• First-time freelancer: Easy-peasy. If you've never been self-employed before, you're good to go for the general flat rate. 
• No freelancing in the last three years: Pretty simple, right? Just make sure it's been three years, or 36 months, or 1095 days (1096 if there was a leap year) since you were last registered as a freelancer.
• No freelancing in the last two years, and you’ve never had the flat-rate freelance quota: Yup, that's it. If you haven't been self-employed in the past two years and haven’t had the flat rate before, you're eligible.

Just a heads-up though, you can't get the flat rate if you're a freelance collaborator — a special deal for family members working for a freelancer.

How much is the flat-rate freelance quota?

In short, the flat-rate freelance quota in Spain from 2023 is €80 per month for your first year. 

However, as with everything, you can scratch the surface and find a brand new ecosystem of variables. Luckily, these are mainly nice extensions for certain demographics.

A closer look at individual cases for an extension of the flat rate

So that €80 per month for your first year comes with a few extra conditions. But don’t worry, these are all positives! 

General flat-rate freelance quota extension for low earners

If you're a new freelancer and meet the conditions we talked about before, the flat rate will cover your first 12 months of work. If your income doesn't go over the minimum wage (€1080 per month), you can extend the flat rate for another 12 months.

Flat-rate freelance quota extension for people with disabilities, victims of gender violence, or victims of terrorism

If you have a disability of 33%, are a victim of gender violence, or a victim of terrorism, you also qualify for an extension of the flat rate.

You’ll enjoy the €80 flat-rate quota for 24 months, as well as an extra 36 months at €180, provided you don’t exceed the minimum wage.

The flat-rate freelance quota for corporate freelancers

Corporate freelancers, or autónomos societarios, are self-employed people who have launched a commercial company. Certain factors mean these business leaders have to register as a corporate freelancer:

• They hold a minimum of 25% of the company in question and performing management or decision-making tasks in it.
• They hold at least 33% of the company's shares, in addition to working for the company.
• They live with a partner who owns at least 50% of the shares.

Following a reform in 2020, corporate freelancers also get the luxury of the flat-rate freelance quota, but with its own quirks, obviously. 

Retroactively claiming your corporate freelancer quota 

Hey corporate freelancers, if you missed out on that sweet flat-rate freelance quota even though you were eligible, you can still get in on the action! Check out these steps to find out how to file a claim for a retroactive refund with Social Security.

You guessed it! Here come the requirements:

• You must have registered as a corporate freelancer in the last four years
• You must meet the requirements for being a corporate freelancer that we discussed in the previous section
• You must file a written request claiming the retroactive refund to Social Security.

Just be prepared to wait a bit — the Ministry of Social Security can take up to six months to get back to you. And if they reject your claim, you can always file an appeal, but that'll take even longer. 🥵

Oh, and one more thing — if you're a woman under 35 or a man under 30, or belong to any of those special groups (you know: small towns, victims of gender violence, terrorism, or disabled), the refund will be even sweeter!

How to register as a freelancer on the reduced flat-rate freelance quota

Now we’re at the end of the article, you’ll be wondering “how do I register for the reduced flat-rate freelance quota?”

We couldn’t leave you hanging, could we?

First things first, you gotta follow all the standard steps of registering as a freelancer 🥱. But as you’re doing so, don’t forget to let Social Security know that you want that flat rate, and why you qualify. Forget to do this and you'll miss out on months of reduced quotas. Bummer, right?

But don't stress, we got your back! The experts at Xolo can handle all that for you. We’ll do it once and do it well, with nothing left to fall through the cracks. 

What is the zero quota for self-employed?

And before concluding, as the icing on the cake, we are going with the latest news and the best news that 2023 has brought us in terms of self-employed contributions: the zero quota for freelancers. 

Certain regions, such as Madrid, Andalucia, Murcia, the Balearic Islands, and La Rioja go one step further and offer a zero quota. Yes, that’s €0 per month for the entire time you would normally benefit from the flat-rate fee (although La Rioja limits it to one year). 

However, it’s not quite as easy as it seems, with some requirements and a retrospective payback format. Aside from the following points, there may be a couple of extra local stipulations depending on your region.

• You need to be free of debts with the Treasury or Social Security.
• You need to be a standard freelancer, not a collaborator or hold a full-time job at the same time.
• You can’t have been registered as a freelancer in the past two years.
• And, obviously, you need to submit all the documentation your regional administration asks of you.

The solution Xolution for expat freelancers in Spain! 

Ahoy mateys! Ready to set sail on the self-employment seas? You be the captain, and get Xolo on board as your first mate! With us at your side, you can kiss those flat-rate worries goodbye. 

We'll make sure your registration as a freelancer is smooth sailing and that you're eligible for the reduced rate — as long as you meet the conditions, of course. And don't worry about any paperwork. We'll take care of it all for you, including VAT and income tax. 

So what are you waiting for? Pull up the anchor that’s weighing you down and let's hit the open water! 😉