If you are about to turn your first year as a freelancer -or you have already done so- this is in your interest, and very much so. The extension of the flat rate for the self-employed can save you almost 1,000 more in instalments, but only if you apply correctly and on time.
And here comes the first important warning: extension is not granted on its own. If you do not do the procedure, you will automatically pay the fee that corresponds to your actual income.
Let's take it step by step, without unnecessary technicalities.
What exactly is the extension of the flat rate?
The flat rate allows you to pay a reduced fee of 80 € per month for the first 12 months as a self-employed person. If you meet certain requirements, you can to extend this reduced fee for a second full year.
In 2025, to this €80 must be added the Intergenerational Equity Mechanism (IEM), which is a small surcharge. In practice, you would be paying around 87,60 € per month.
👉 Second year savings of around 960 €., so it is worth paying attention.
Who can apply for an extension?
You can apply for an extension if you meet the following conditions all these conditions:
- You have been a beneficiary of the flat rate for the first year.
- You request the extension within the time limit (this is key).
- Your NET YIELD during that first year do not exceed the SMI.
In 2025, the Minimum Interprofessional Salary is 1,184 € per month in 14 payments, i.e, 16.576 € per year.
🔴 Important: gross income is not taken into account, but the actual profit (income minus expenses).
The deadline you can't miss
This is the most common and the most expensive mistake.
➡️ You have one month from your first year of self-employment. to apply for the extension.
- It is no good to do it before.
- It cannot be done after the deadline.
- There are no extensions of the deadline.
If you miss it, you automatically lose the right, even if you meet all the financial requirements.
How do I apply for an extension, step by step?
The application is made online, through the Social Security Electronic Headquarters. You will need:
- Digital certificate,
- Cl@ve, or
- Electronic ID.
The process, in simple terms, is as follows:
- Access the Social Security E-Office.
- Search for the procedure related to the flat rate / fee reductions.
- Presents the affidavit indicating that you do not exceed the SMI.
- Send the application and keep the receipt.
💡 Practical advice: take a screenshot or download the receipt, in case there are any incidents at a later date.
What if I have not yet filed my tax return?
It's OK. It's a very common situation.
The extension is requested by affidavit, i.e. you declare that estimates not exceeding the SMI in net income.
But know this:
- If it later turns out that you did exceed the SMI,
- Social Security can regularise the situation and claim the difference.
👉 Even so, in many cases it is advisable to apply for it and adjust afterwards, instead of losing the entitlement directly.
Common mistakes when requesting an extension of time
Avoid these typical pitfalls:
- ❌ To think that it is automatically renewed.
- ❌ Confusing turnover with profit.
- ❌ Applying after the deadline.
- ❌ Failure to keep proof of application.
- ❌ Not being up to date with payments to the Treasury or Social Security.
Does it pay to ask for an extension?
In most cases, yes.
Clear advantages:
- You pay a much reduced fee for another year.
- You gain room to consolidate your business.
- You reduce financial pressure at a critical stage.
Aspects to be taken into account:
- You contribute on a low base (affects your future pension).
- It is a temporary help, not a permanent solution.
👉 The key is in use that second year to grow, not just to pay less.
Recommendations before applying
Before pressing the button:
- Take a good look at your income and expenses for the first year.
- Check with your manager if you are close to the SMI limit.
- Make sure you have no outstanding debts.
- Use these savings for training, marketing or consultancy.
