Paying your monthly quota and avoiding missed debits

Terms used

• Domiciliación — Domiciliación is a direct debit: your bank pays a regular bill automatically from your account.
• RETA — The RETA is the Social Security scheme for self-employed workers.
• Baja — The baja is your formal deregistration, which ends your obligation to pay the quota.
• TGSS — The TGSS is the Social Security office that registers you and collects your quota.
• Alta — The alta is your registration as self-employed in Social Security.
• Recargo — The recargo is a surcharge added to a quota paid late.

Key rules

• Debit day: The quota is debited on the last working day of the month, for that same month.
• No income: You still owe the quota every month you are registered; only a baja stops it.
• Late payment: A returned debit costs a 10 percent surcharge if paid by the end of the following month, then 20 percent.
• Bank account: A Spanish IBAN is the safest choice for direct debit.

The quota is debited every month, whatever you earn

Your quota is taken by direct debit (domiciliación) from your bank account on the last working day of the month, for that same month. It is due every month you are registered, even with no income. The only way to stop paying is to request your baja in the RETA. A cese de actividad benefit exists, but only for people who meet strict conditions.

Which bank account to use

Most people use a Spanish IBAN, and that is the safest choice. Accounts in other SEPA countries are sometimes accepted, but direct debit is usually set up with a Spanish account. Ask the TGSS whether your foreign account can be used before you rely on it.

If you have just arrived and have no Spanish account

You have three options:

• Open a non-resident or resident account in Spain and set up the debit.
• Ask the TGSS about using your foreign SEPA account.
• Pay each month with a payment document at a bank, or by card online, through the Seguridad Social online office.

Your first quota after registration (the alta) can be paid with a payment document. Do this first, so the first month is not missed while your debit is being set up. Check the timing with the TGSS.

Avoid a missed debit

Keep enough money in the account before the last working day of each month. If the debit is returned, the quota counts as unpaid and costs extra.

If a payment is missed or returned

Pay it with a payment document by the end of the following month. The surcharge (recargo) is then 10 percent. After that, the surcharge is 20 percent and the TGSS can start collection by enforcement. Confirm the exact rates with the TGSS.

The timeline, checklist and warnings below go through these steps in order.

Timeline and deadlines

• Set up direct debit from your bank account, or choose to pay by card or with a payment document: before the month ends

• If the debit was returned or missed, pay with a payment document to pay a 10 percent surcharge: by the end of the following month

• If it is still unpaid, a 20 percent surcharge applies and the TGSS can start collection by enforcement: after the end of the following month

Checklist

• Use a Spanish IBAN if you have one, as most people do.

• Pay with a payment document at a bank or by card online until your debit works, including your first quota after registration.

What to watch out for

• A returned or missed debit costs extra: If the quota is not paid within its month or the debit is returned, a 20 percent surcharge applies when you pay late, and the TGSS can start collection by enforcement.

• No income does not stop the quota: The quota is charged every month you are registered as an autónomo, even if you earn nothing, and unpaid months add up with surcharges. If you have stopped working, request your baja (deregistration) so the debits end.

Frequently asked questions

Do I need a Spanish IBAN to pay my autónomo quota by direct debit?

No, a Spanish IBAN is not strictly required, because direct debit from a SEPA bank account is accepted. In practice most people set up the debit with a Spanish account. If you want to use an account in another SEPA country, ask the TGSS (Spain's social security office) first.

How can I pay my first quota if I have just arrived and have no Spanish bank account?

You can pay each month with a payment document, at a bank or by card online, until you have a Spanish account. The first quota can be paid after your registration (alta) using that payment document, so do not wait until the debit date. You can also open a non-resident or resident account in Spain, or ask the TGSS about using a foreign SEPA account.

How do I stop paying the quota if I earn nothing for a while?

You stop paying only by requesting your baja (deregistration) from the autónomo scheme. Until then the quota is charged every month, even with no income.

How much extra do I pay if a quota debit is returned?

You pay a 10 percent surcharge if you settle the debt by the end of the following month, and 20 percent if you pay later. If it stays unpaid, the TGSS can start collection by enforcement.