What is an Autónomo?

An autónomo is a self-employed worker in Spain who runs their own business and is responsible for their own taxes, social security, and other benefits.

Autónomos are variously referred to as freelancers, entrepreneurs, or small business owners.

As an autónomo, you will have more flexibility and autonomy, but also more responsibility and risk, as there is no employment contract outlining your working conditions and salary.

Want to hear what other clients
are saying about us?

E x c e l l e n t !

See our Independent reviews

4.8

457

ratings

4.8

457

ratings

Consult an Expert

Who can become an Autónomo in Spain?

While anyone can technically become an autónomo in Spain, the requirements and process vary significantly based on your nationality:

EU/EFTA Citizens

• Can work freely in Spain without special permits
• Need only register for residency (NIE) and with social security
• Can start working immediately after registration
• Must prove financial means to support themselves
• Need comprehensive health insurance coverage

Non-EU/EFTA Citizens: Traditional Route

To become self-employed in Spain, non-EU citizens must:
 

• Apply for a self-employment visa (visado por cuenta propia)
• Present a detailed business plan
• Prove financial resources of at least €25,000
• Show qualifications/experience in their field
• Obtain necessary licenses for their profession
• Demonstrate potential economic impact in Spain
• Provide criminal record certificates
• Show comprehensive health insurance coverage

The RETA System: Social Security for Self-Employed Workers

The Régimen Especial de Trabajadores Autónomos (RETA) is Spain's mandatory social security system for self-employed workers. This system provides essential coverage for autónomos, including healthcare, pension benefits, and disability protection. Understanding RETA is crucial as registration is compulsory for all self-employed individuals working in Spain.

All self-employed workers must register with RETA within 60 days of starting their business activities. Registration is required if you:

• Work independently on a regular basis
• Have direct control over your work
• Earn income from your professional activities
• Are over 18 years old

Notable exceptions exist for certain professions covered by alternative professional associations, such as lawyers or architects who may opt for their professional college's mutual insurance system.

As of 2023, RETA contributions follow a new income-based system with 15 different brackets:

Base Contribution Rates

The following amounts are nominal and are effectively standardised base amounts that allow the monthly contribution that the self-employed worker must make to the social security system. The minimums and maximums are calculated based on the income of the self-employed person i.e. if you have a certain income, there will be a minimum base amount which will be used to calculate your social security contribution.

If you use the maximum base amount (as determined by your income) to calculate your contribution, then you will obtain increased benefits in terms of pension, unemployment payments etc

• Minimum monthly base: €950.98 (for lower income brackets)
• Maximum monthly base: €4,139.40 (for higher income brackets)

Monthly Payments Based on Income

As an example, using the minimum contribution bases, the following monthly incomes will give rise to the corresponding monthly social security contrubutions below:

• Income below €670: From €230 monthly
• Income €670-€900: From €260 monthly
• Income €900-€1,166.70: From €275 monthly
• Higher income brackets: Progressive increases based on earnings

Special Rates for New Autónomos

• First 12 months: €80 flat rate
• Months 13-24: Progressive increase based on income
• Additional benefits for young entrepreneurs, women returning to work, and residents in municipalities with fewer than 5,000 inhabitants

RETA provides comprehensive coverage including:

Healthcare Benefits

• Access to Spain's public healthcare system
• Coverage for dependents
• Medical, surgical, and pharmaceutical care
• Emergency treatment

Pension Benefits

• Retirement pension based on contributions
• Minimum contribution period: 15 years
• Calculation based on last 25 years of contributions
• Option for early retirement under specific conditions

Additional Protection

• Temporary disability coverage
• Permanent disability benefits
• Maternity/paternity leave
• Work-related accident coverage
• Professional illness protection

Spain's new digital nomad visa offers a special pathway for remote workers and entrepreneurs:

Eligibility Requirements:

• Highly qualified professionals in their field
• Work remotely for non-Spanish companies (maximum 20% income from Spanish sources)
• Minimum monthly income of €2,334 (twice the minimum wage)
• At least 3 years of professional experience or recognized qualifications
• Clean criminal record

Benefits:

• Initial validity of 1 year (or 3 years if applied for in Spain via a lawyer)
• Can be extended up to 5 years
• Tax advantages: Option to pay Non-Resident Income Tax (IRNR) for 4 years
• Reduced tax rate of 24% up to €600,000
• Family members can join as dependents
• Freedom to live and work anywhere in Spain

Application Process:

• Initial application at Spanish consulate in home country (or via the Large Business Unit of the Spanish Government via an authorised lawyer in Spain)
• Business activity verification
• Proof of accommodation in Spain
• Health insurance documentation
• Background check clearance

Step 1: Obtain a NIE number (Número de Identificación de Extranjero)

• An NIE number is a personal and unique tax identification number used to track financial and legal activities in Spain.
• You can apply for a NIE number before arriving in Spain or at a National Police Station in Spain.
• You will need a NIE number to register as an autónomo and start working in Spain.

Step 2: Register with the Spanish Tax Agency

• As a self-employed worker, you must register with the Spanish Tax Agency (Agencia Tributaria) and obtain a tax identification number.
• You will need to submit a Modelo 036 or 037 form to register with the tax agency.
• You will also need to register for income tax (IRPF) and value-added tax (IVA).

Step 3: Register with Social Security (Seguridad Social)

• As an autónomo, you must register with the Spanish Social Security System (Seguridad Social) and obtain a social security number.
• You will need to submit a TA.0521 form to register with social security.
• You will also need to pay social security contributions to access public healthcare and retirement pension benefits.

This will cost the typical autonomo or sole-trader around €350 per month and entitles the self-employed person to receive health care from the Spanish national health service as well as a pension upon reaching the statutory pensionable age.

Depending on the amount paid, a sole-trader may also receive unemployment benefits should their business become unsustainable. However, this is a complex issue and eligibility will depend on how the business became unsustainable. The amount and quantity of unemployment payments will depend on the number and amount of social security contributions that have been made.

If you are an autónomo who is only starting a business in Spain - and for a period of 2 years thereafter, or are under 30 years of age or have been long term unemployed or are a woman over the prescribed age you may be entitled to a reduction in the monthly payments. This needs to be checked in each particular case.

Digital Certificate (Certificado Digital)

The Digital Certificate is an essential electronic document that verifies your identity for online transactions with Spanish authorities.

• Initial Request

  • Visit the Spanish Mint's website (FNMT-RCM)
  • Enter your NIE/NIF and contact details
  • Receive a request code

• Identity Verification

  • Visit an authorized registration office
  • Present your NIE/passport and request code
  • In-person verification required

• Certificate Download

  • Download within 24 hours of verification
  • Install on your device
  • Create backup copies

• Tax declarations
• Social Security procedures
• Official communications
• Electronic signatures
• Access to administrative platforms
• Bank operations

• Valid for 4 years
• Renewal possible 2 months before expiration
• Revocation process if compromised
• Multiple device installation possible

Cl@ve System

Cl@ve is a unified authentication system for public administration services.

• Basic Cl@ve PIN

  • Simple registration online
  • Valid for specific operations
  • Time-limited codes

• Cl@ve Permanente

  • Enhanced security level
  • Permanent username/password
  • Two-factor authentication available

• Initial registration online or in-person
• Identity verification
• Activation letter receipt
• System setup completion

• Tax Agency (AEAT)
• Social Security
• Health System
• Municipal services
• Educational platforms

Understanding IAE

The IAE is a local business tax based on your professional activity.

• Mandatory registration for all business activities
• Tax exemption for turnover under €1,000,000
• Different rates for various activities
• Local authority administration

Registration Procedure

1. Identify correct epigraph number
2. Multiple activities require separate registrations
3. Review activity descriptions carefully
4. Consider future expansions

1. Modelo 036/037 

   1. Choose appropriate form 
   2. Complete all sections 
   3. Declare start date 
   4. Specify activity location

2. Required Information

   1. Personal details 
   2. Business address 
   3. Activity codes 
   4. Expected turnover

1. Submit to local tax office
2. Online submission with Digital Certificate
3. Payment of applicable fees
4. Retain confirmation receipt

Activity Classifications

1. Professional services
2. Commercial activities
3. Industrial activities
4. Artistic activities
5. Sports activities

Want to hear what other clients
are saying about us?

G o o g l e reviews

201 reviews

4.8

4.8

Consult an Expert

Understanding Your Tax Requirements

As an autónomo, you'll need to handle quarterly and annual tax returns for both income tax and VAT (IVA). Here's what you need to know:

1. Quarterly returns must be filed for both income tax and VAT
2. Annual returns are due: VAT: Before January 31st 
   1. Income tax: End of June
   2. VAT: Before January 31st
3. You must maintain detailed records of all bills and invoices
4. VAT receipts and payments need separate tracking

Home-Office Deductions

Many autónomos work from home, and you can claim certain expenses proportionally. The key principle is claiming expenses based on the percentage of your home used for business. 

For example, if your home is 120 square meters and your office space is 30 square meters, you can claim 25% of eligible bills. Deductible expenses include:

• Property taxes (IBI)
• Rent
• Community charges
• Home insurance
• Mortgage interest
• Utilities (if used for business): 
  • Electricity
  • Phone 
  • Internet

Vehicle-Related Expenses

Vehicle expenses can be claimed but require careful consideration. Deduction percentage depends on whether the vehicle is for business-only or mixed use as well as your specific business activity.

Claims can range from 0-100%, though 50% is common and it is vital to keep detailed records of business versus personal use.

Open a Spanish Bank Account

• As an autónomo, you will need a Spanish bank account for receiving payments and making transactions. You can choose between a business or personal bank account.
• Some banks offer special perks for autónomos, such as free accounts and cards. Setting up direct debits simplifies handling recurring payments, making it easier to manage business-related expenses and social security contributions.

Obtain Necessary Licenses and Permits

As an autónomo, you may need specific licenses and permits to operate your business. You should check with local authorities to determine required licenses and permit, or - as is more likely to be the case - ask your lawyer to do this on your behalf. 

Want to hear what other clients
are saying about us?

E x c e l l e n t !

See our Independent reviews

4.8

457

ratings

4.8

457

ratings

Consult an Expert

Create a Professional Invoicing System

Your invoices must meet specific legal requirements:

1. Must be labeled as "Factura" without additions
2. Include emission date and service date (if different)
3. Use consecutive numbering
4. Include your fiscal details:
5. NIE number/CIF
6. Registered business address
7. Client details (for business clients): 
   1. NIE or CIF
   2. Registered address
8. Clearly show:
   1. Base amount
   2. IVA (VAT) rate and amount
   3. Any discounts
   4. Total amount
   5. Include Euro conversion if using other currencies

Retentions

In order to ensure orderly payment of income tax, the Spanish government insists that when a self-employed individual in Spain is billing another professional for a service provided, that the business that is paying for the service is obliged to pay 15% of the amount in their tax return.

So, effectively the autónomo carrying-out the service foregoes 15% of their income in order to ensure that their income tax obligation is spread-out across the tax year. 

As an example, if you are charging €1000 for a service to another professional , you would in fact invoice 1000€ + 21% IVA (VAT) - 15% IRPF (retained income tax payable by the professional you are billing) and therefore expect to receive €1060 (€1000 + €210 - €150 = €1060).

This means that you are effectively paying your tax as you go. At the end of each year your tax bill is calculated and any retentions you have already made are deducted from your final tax bill.

You will need also to keep any VAT you charge apart as you are responsible for paying this to the government at the end of each quarter. VAT received is balanced against any VAT paid on products and services required for the running of the business and any positive balance is payable.

Administrative Responsibilities

As a self employed person, you will be responsible for managing your own business and administrative tasks. Accordingly, you will need to keep track of your finances, including income and expenses.

Unlike working as an employee, you will also need to manage your time and prioritise tasks.

Tips for Freelancers in Spain

• Consider using a business bank account to separate personal and professional finances
• Consider hiring an accountant for tax and accounting support
• Use online resources and communities to connect with other freelancers and find work

Paying Social Security Contributions

Social security contributions fund healthcare and provide essential benefits. Key points:

• Monthly payments vary based on income and work type
• Set up direct debits for automatic payments (not all banks - especially the online variety - are connected to the Spanish Social Security system)
• Keep detailed records for benefit eligibility
• Contributions cover healthcare and retirement benefits

Spain's freelance market offers opportunities across various sectors, though for English-speakers who don't have a good command of the Spanish language will often find work opportunities restricted to businesses that serve English-speakers - either in Spain or globally.

Digital and Creative Services

• Online Marketing
• Web Development
• Translation Services
• Graphic Design
• Content Writing

Professional Services

• IT and Technology
• Healthcare Services
• Financial Services
• Marketing Strategy
• Business Consulting

Success as an autónomo in Spain requires understanding and following proper procedures while building a strong professional network. Keep these key steps in mind:

• Register properly with tax and social security authorities
• Maintain accurate financial records
• Set up professional banking and invoicing systems
• Stay current with tax and social security obligations
• Build a strong professional network
• Continuously update your skills and knowledge

By following these guidelines and staying informed about your obligations, you can build a successful career as an autónomo in Spain. Remember that while the process may seem complex initially, the flexibility and independence of being self-employed can make it worthwhile. And, of course, you get to live in Spain!

Want to hear what other clients
are saying about us?

G o o g l e reviews

201 reviews

4.8

4.8

Consult an Expert

How much tax do you pay in Spain as autónomo?

As an autónomo in Spain, income tax is progressive, ranging from 19% to 47% depending on earnings. Tax rates vary by region due to additional local levies. You'll also need to charge VAT (IVA) at 21% on most services, and remit both income tax and VAT quarterly. Additionally, social security contributions start at approximately €230/month, with reduced rates available for new autónomos (starting at €80/month in 2024).

What are the benefits of being autónomo in Spain?

Being autónomo in Spain offers significant benefits, including flexibility to set your schedule, independence in business decisions, and direct control over your income. It's ideal for small ventures or freelancing, with the ability to deduct business expenses from taxes. New autónomos can access reduced social security rates, making it easier to start a business. Additionally, Spain’s digital infrastructure supports remote work opportunities.

This comprehensive overview helps highlight both professional and personal advantages.

What is the new autónomo law in Spain?

As of January 1, 2023, Spain introduced a new income-based contribution system for autónomos. Social Security payments now align with actual net earnings, following a progressive model: the more you earn, the more you pay. The system includes 15 income brackets, each with specified minimum and maximum contributions, and allows autónomos to adjust their contribution base up to six times annually to match income changes. This reform aims to make contributions fairer and more proportionate.

It also offers benefits like enhanced unemployment coverage and an €80 flat rate for the first 12 months for new autónomos, promoting self-employment opportunities.

How much is autónomo Spain per month?

As of 2023, autónomo payments in Spain depend on your income. Monthly contributions range from €230 to €500 for lower-income brackets and can increase based on earnings, with higher contributions for higher income levels. Before 2023, autónomos chose a contribution base between €960.60 and €4,139.40, resulting in payments from €296 to €1,266.66 per month. The new system ensures contributions align more closely with net income.

New autónomos may qualify for a flat rate of €80 per month for the first 12 months, providing a more affordable start.

Can you work as self-employed in Spain?

Yes, you can work as self-employed in Spain if you meet certain requirements. Anyone over the age of 18 (or younger if legally emancipated) can register as an autónomo. This includes Spanish citizens, EU/EEA nationals (who do not require a work permit), and non-EU nationals with a valid residence permit that allows for self-employment. Ensuring proper registration with the Tax Agency (Hacienda) and Social Security is essential to operate legally.