Deregistering as self-employed in August: saving money or a long-term risk?

 

Every summer, many freelancers and small businesses in Spain ask themselves the same question: is it worth deregistering in August to avoid paying the social security contribution?
Although it might sound attractive at first, the truth is that, except for very specific cases, it usually brings more disadvantages than benefits.

Where is the supposed saving?

The only immediate advantage is not paying the monthly contribution while deregistered. Under the income-based contribution system, the minimum fee in 2025 is €200, but it can be much higher depending on declared income.

For freelancers with purely seasonal activity that completely stops in August, it might seem like an attractive saving. But the key question is: does it really pay off in the medium and long term?

The disadvantages that outweigh the saving

1. Loss of benefits and allowances.

   • If you enjoy the flat rate (€80/month), you lose it immediately. In September you’ll have to pay the full fee, and you won’t be eligible again for 3 years.

   • The same applies to other allowances (family reconciliation, collaborating freelancers, regional aid, etc.).
      

2. More administrative procedures.

   • Deregistration with the Tax Agency (forms 036/037).

   • Deregistration with Social Security through Import@ss.

   • In September, the double process again for re-registration.
     Any mismatch in dates could mean fines or billing problems.
      

3. Loss of deductible expenses.
   While deregistered, you cannot deduct fixed expenses such as rent, utilities, accounting services, software or purchases. In many cases, the lost deductions are greater than the fee saved.
    

4. Full stop of activity.

   • You cannot issue invoices.

   • You cannot take advantage of unexpected work opportunities in August.
      

5. Limit on annual registrations and deregistrations.
   Social Security only applies proportional fees for the first three registrations each year. From the fourth onwards, you pay the full monthly fee even if you only work for a day.
    

6. Impact on future benefits.

   • Each month without contributing is one month less towards your retirement pension.

   • Interrupting contributions resets the period required to access the unemployment benefit for freelancers.

   • It could also affect temporary disability rights if you fall ill shortly after rejoining.

When could it make sense?

Only in a very specific scenario:

• You don’t benefit from any allowance.

• Your activity is 100% seasonal.

• You have no deductible fixed expenses.

• You are sure you won’t need to issue invoices during August.

Even then, it’s important to assess whether saving one fee is worth the administrative hassle and the interruption in your contribution record.

For the vast majority of freelancers and small businesses, deregistering in August is not worth it. What looks like an immediate saving often ends up costing more, with the added risk of losing allowances and reducing future social protection.