From 80 to 400 euros a month: how to prepare your finances for when the tarifa plana ends
When you registered as an autónomo (self-employed worker), the tarifa plana (the reduced flat-rate Social Security contribution for new freelancers) was probably the best news in the whole process. Eighty euros a month for your Social Security contribution. Nothing. A huge relief in the first few months, when income is still on its way and every euro counts.
The problem is what comes afterwards. Because the tarifa plana ends. And when it ends, it doesn’t go up a little: it multiplies by four or five all at once. And it coincides precisely with the moment when many autónomos start to have real income, so the blow gets mixed up with the first sizeable quarterly IVA (VAT) and IRPF (personal income tax) payments.