Spain’s unemployment benefit – the “pago único” – is a little-known gem for anyone who dreams of starting their own business.
Instead of waiting for the usual monthly payments, you have the option to receive your outstanding benefits in a lump sum of up to €37,800. Want to cover startup costs in one fell swoop? Here’s how.
Unlock Your Unemployment Benefit for Startups
Consider this your springboard: All the money you’ve accumulated during your 24 months of unemployment benefits (currently capped at €1,575 per month) can be paid out at once. That means a potential €37,800 gross available to fund everything from renting premises to purchasing equipment to launching a marketing campaign. The catch? Every euro must be invested in a self-employed project, whether it’s freelance work, joining a cooperative, or setting up a small limited liability company. So, taking a vacation is out of the question!
Who can claim the flat rate?
Not everyone will qualify, but if you meet the right requirements, this is a unique opportunity.
First, you must be officially registered as unemployed, either due to termination or contract expiration. Voluntary departures are not permitted.
Second, you must have at least three months of your benefit remaining when you apply – this is the minimum you can capitalize.
Third, you must not have applied for capitalization in the last four years; SEPE imposes a strict four-year cooling-off period.
Fourth, you must start your business or join a cooperative within one month of approval – without delay.
Finally, SEPE requires a viable business plan: outline your idea, explain how you plan to spend the money, and show when you expect to break even.
If you meet all of these requirements, you’ll be in the best position to convert your unemployment benefit into business capital.
Putting Your SEPE Application into Practice
Receiving that check is easier than you might think, but it requires following a clear process.
First, schedule an appointment at your local SEPE office, or use the online option if you have a digital certificate or Cl@ve.
Next, fill out the official SEPE form—download it from the website or pick it up in person.
Then add your business plan and succinctly explain what you plan to do, how much it will cost, and how you plan to use the lump sum.
Then submit your DNI/NIE, proof of your bank account details, and all documents related to membership in the cooperative.
Once SEPE gives the green light, register with Social Security as a self-employed person within one month – if you miss this deadline, you risk losing your benefits.
Combine this capitalization with other programs, such as regional subsidies for the self-employed or the flat-rate €80 discount on social security contributions for new self-employed individuals. If cash flow is a problem, you can also retain part of your benefit to cover the first social security payments.
In short, Spain’s “pago único” turns your safety net into seed capital. Do you have an idea you’re eager to bring to market? This could be the €37,800 boost you need to make your dream a reality. Good luck!
