The Complete Guide for Self-employed (Autónomos) in Spain

If you're thinking about starting a business in Spain as a self-employed, it's crucial to understand the steps and obligations involved in this regime. In this guide, we’ll explain in simple terms how to register as a self-employed, the taxation system, the importance of accounting, social security, and the available benefits and deductions.

What is a Self-employed?

A Self-employed is an individual who carries out economic activities independently on a regular basis. Operating under this regime allows you to manage your own business without the need to set up a company.

Steps to Register as a Freelancer

Step 1: Obtain a Digital Certificate (Optional) 

- Although not mandatory, having a digital certificate facilitates the process of managing online paperwork with the administration.

Step 2: Register with the Tax Agency

- Form 036 or 037: Complete and submit Form 036 (or Form 037 if it's simplified) to the Tax Agency. Here, you will declare the start of your activity and register in the census of businesses.

- Required Information: You’ll need to provide information such as your name, ID number, economic activity (with the corresponding IAE classification) and how you will be taxed.

Step 3: Register with Social Security 

- Registration in the Special Regime for Self-Employed Workers (RETA): You must register with the RETA at the Social Security. This involves submitting Form TA0521 to the General Treasury of Social Security (TGSS).

- Self-employed Contribution: Upon registration, you will choose a contribution base on which your monthly fee will be calculated.

Step 4: Activity License and Other Requirements Depending on your activity, you may need an opening or activity license from your local town hall. Check local regulations.

Taxation for Self-employed

Declarations and Payments:

- VAT (Value Added Tax): If your activities are subject to VAT, you must submit Form 303 quarterly and Form 390 annually.

- Personal Income Tax (IRPF): You must submit Form 130 quarterly (or Form 131 if you apply the objective estimation system) and Form 100 annually.

- Fractional Payments: In addition to quarterly declarations, you must make fractional payments of your taxes.

Tax Rates

- VAT: Generally, the tax rate is 21%, though reduced rates of 10% and 4% apply to certain products and services.

- IRPF: Income is taxed at progressive rates, which can go up to 47% depending on the taxable base.

Importance of Accounting Management

Accounting is essential for any Self-employed. Keeping a proper record of your income and expenses will allow you to:

- Meet Tax Obligations: Keeping your accounts in order makes it easier to file accurate declarations and avoid penalties.

- Have Financial Insight: It helps you understand the financial health of your business and make informed decisions.

- Prepare Corporate Tax (if applicable): Although Self-employed do not file this tax, those who become companies must maintain detailed accounting.

Recommendation: Use accounting software or hire a manager to help keep your accounts up to date.

Social Security for Self-employed

Contributions:

- Contribution Base: The Social Security contribution is calculated based on the contribution base you choose. There are different minimum and maximum bases.

- Monthly Fee: The minimum fee is approximately 294 euros per month (for the year 2024), though it can vary depending on the chosen base and other factors.

Coverage

- Benefits: Self-employed are entitled to benefits for temporary incapacity, retirement, and risk during pregnancy, among others.

- Health Insurance: Healthcare coverage is included, but additional insurance can be purchased if desired.

Benefits and Deductions for Self-employed

1) Deductions on IRPF:

- Deductible Expenses: You can deduct expenses necessary for your activity, such as rent, supplies, materials, and professional services.

- Vehicle: If you use a vehicle for your activity, you can deduct expenses proportionally to business use.

- Meals and Travel: Business meals and travel expenses can also be deductible, provided they are properly justified.

2) Additional Benefits:

- Bonuses in Self-employed Contributions: There are bonuses for new freelancers and reductions in fees for certain groups.

- Grants and Subsidies: You may access grants for entrepreneurs, digitalization aids and other incentives offered by public administrations.

Conclusion

Being self-employed in Spain can be an excellent option if you want to manage your own business with a flexible structure. By following the correct registration steps, understanding your tax and accounting obligations, and taking advantage of available deductions and benefits, you can optimize your economic activity and ensure your business's success.

Our partners from Entre Trámites offer personalized consultations to help you navigate these decisions. As a member of the OneCowork community, you can benefit from a free 30-minute consultations with their specialists. Count on their support on every step of the way, from initial setup to ongoing management.

Ready to take the next step in your entrepreneurial journey? 

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*Post written in collaboration with Entre Trámites. 

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