Pluriactivity vs. flat rate.
Is it possible to work as an employee and be self-employed at the same time? What are the tax advantages if you decide to start a business without leaving your job? In this article we explain how the pluriactivity, what is the flat rate for new self-employed and what are the tax deductions for investment in start-ups. Everything you need to know if you are thinking of becoming an entrepreneur without giving up the security of your salary.
What is moonlighting and how does it work?
The pluriactivity is a legal situation that allows a worker to simultaneously pay contributions in the General Regime (as an employed person) and in the Special Regime for Self-Employed Workers (RETA). In other words, you can be self-employed and employed at the same time.
Advantages of multiple job security for the self-employed
- Financial stability: you can launch your business without being completely dependent on their income.
- Reduction of quotas: there are specific allowances for those who start a self-employed activity while in multiple activity.
Rebate on the self-employed quota for multiple activity
If you work as an employee at full time and register as self-employed:
- First 18 months: you pay only 50% of the minimum contribution base (approx. €146/month).
- Months 19 to 36: you contribute at 75% of the minimum base (about 220 €/month).
Note: this bonus is not automatic. It must be applied for when registering with the RETA.
What is the flat rate for the self-employed and how is it applied?
The flat rate for new self-employed is a state subsidy that allows you to reduce your monthly Social Security contribution. It is an option also available to those who are in pluriactivity, as long as they have not applied for the previous rebate.
Reduced fee:
- 80 €/month for the first 12 months
- Extension for another 12 months if the net income does not exceed the SMI.
Important: You cannot apply the flat rate and the multi-activity bonus at the same time. You must choose one of the two options.
Which is the better option: flat rate or bonus?
It depends on your situation:
- If you already have a stable job, the bonus for multiple activity may be more advantageous in the long term.
- If you are not in permanent employment, the flat rate can help you reduce costs at the outset.
Tax deductions for investment in start-ups
If you decide not only to start a business, but also to investing in startups or young companies, you can take advantage of interesting personal income tax deductions. These deductions apply at both state and regional level.
1. State deduction for investment in new companies (IRPF)
- 50% deduction on the amount invested
- Limit: 100.000 € per year base (max. 50.000 € deduction)
- Maximum participation: 40% of the company's capital
- Maintenance period: between 3 and 12 years old
The company must be newly created, unlisted and may not be engaged in financial or real estate activities.
2. Regional tax deductions
In addition to the state deduction, many communities offer deductions in the regional part of the IRPF. Examples:
- Madrid: 30% up to €6,000
- Galicia: 20% up to €4,000
- Catalonia, Andalusia, Aragon: similar deductions
These deductions can supplement your state deduction and increase your tax savings if you qualify.
General requirements:
- Formalising the investment in a public deed
- The company must submit the model 165
- Retain proof of payment, certificates and legal documentation.
Conclusion: Is entrepreneurship while keeping your job a good idea?
Yes, starting a business without leaving your job as an employee is a smart way to validate your project without risking your financial security. The bonuses for multiple activity, the flat rate and tax deductions for investment in new companies are tools that allow you to start with less financial pressure and better tax planning.
In our tax and accounting advice we help you to:
- Choose between flat rate and multi-activity bonus
- Optimise your self-employed contribution
- Apply available tax deductions
Are you ready to start your own business without leaving your job? Contact us and we will accompany you step by step.
