Tuesday, 25th September 2018
BUSINESS SERVICES Article
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How does a paying plan work with social security?

How does a paying plan work with social security?

If you owe money to the Social Security you can apply for a deferred paying plan.

If you miss one or more payments to the social security you can still obtain a payslip in the following months with some overcharges.

10% if it is paid during the following month & 20% if it is paid one more month later

Should the debt be pending for over 2 months, it will be pursued by another department (Executive Collections) which will attempt to get it paid with an embargo on your bank account. Unless the debt is moved to this status it will not show up in a certificate of debt and when debts are paid before the 2 months they do not have any
impact on debt records.

Account embargos do not have a predictable timing and may surprise you at any time. To avoid this, with its consequence on your cashflow, reach an agreement with the social security for a deferred paying plan.


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To be eligible for a plan you need to meet these conditions:

  1. The debt must be more than 2 months old, meaning that you need to make sure that the current month and the previous are paid. (the reason for this will be understood later on)
  2. Your application must include all the debt. If you hold 2 businesses under your name, you would have to include them both.
  3. If on the outstanding amount there is a non-postponable one, approximately 20% you need to settle this before signing the agreement.
  4. Finally, if you miss an instalment, you have 1 month to catch up before the agreement is cancelled.
  5. While paying your instalments you must pay your regular social security otherwise your agreement will be cancelled. (This why you need to make sure your last
    two months are paid before entering into an agreement).

If you cannot apply for one yet, say the 20% to settle is un-affordable at the moment or you still need to pay previous months, you can always reduce the debt by making interim payments of any amount. This will not stop the attempts to collect via embargoes.

Paying on time will avoid overcharges.



Limit Consulting - Tax Consultants from Sotogrande to Manilva, Estepona San Pedro, Marbella
Business, Legal, Accounts, Calle Miguel Delibes, 9, 29692
+34 951 087 937
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Limit Consulting - Tax Consultants from Sotogrande to Manilva, Estepona San Pedro, Marbella

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