Social Security debt management options in Spain

Self-employed workers and small businesses in Spain facing Social Security debts have several legal options to avoid asset seizures. When contributions are not paid on time, the Tesorería General de la Seguridad Social (TGSS) applies surcharges that increase the longer the debt remains unpaid.

If the debt is not settled, the TGSS can issue an enforcement order, leading to the seizure of bank accounts, wages, tax refunds, or other assets. Additionally, outstanding debts prevent businesses from obtaining certificates of being up to date, which are necessary to access public subsidies, aid, or government contracts.

To prevent these measures, businesses can request a payment deferral through the TGSS electronic office by proposing a payment schedule based on their transitional financial situation. Once a deferral is requested and payments are being made according to the agreement, the business can be considered up to date for certification purposes. It is also noted that Social Security debts generally expire after four years, though this period can be interrupted.