Self-employed in Spain: How do I become an ‘autónomo’?

If you want to become self-employed in Spain as an ‘autónomo’, you must first complete a few formalities before you can start your business activity.

Two essential steps are registering with the national insurance and with the tax authorities in Sapin

How do I register with these authorities as a self-employed person (like freelancer, independent professional, sole trader, entrepreneur)?

And what other steps may I need to take to start my own business in Spain?

I will answer these questions in detail here. But first, let me explain who is considered an ‘autónomo’ in Spain.

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When am I an ‘autónomo’ in Spain?

According to the Spanish Law of the Statute of Self-Employment (‘Ley del Estatuto del trabajo autónomo’) you are an ‘autónomo’:

If you, as a natural person, regularly, personally, directly, independently and outside of the sphere of management and organisation of another person, carry out an economic and professional activity for profit (regardless of whether you have employees or not). Art. 1 Ley 20/2007

Or if you, as a member of the family of the aforementioned person, regularly carry out the work and do not have the status of employee.

The ‘autónomos’ also include (provided they fulfil the above conditions)

• Industrial partners in regular partnerships and limited partnerships.

• The co-owners of community property and partners in irregular civil partnerships, unless their activity is limited to the mere administration of the assets held in common.

• Those who exercise the functions of direction and management that come with the post of director or administrator, or provide other services for a capitalist mercantile society. Provided that they provide such services for profit and in a habitual, personal and direct manner and when they have effective, direct or indirect control over that company.

• Economically dependent self-employed persons within the meaning of the law.

• Foreign self-employed persons who are legally resident in Spain

What are the characteristics of an ‘autónomo’?

You must be at least 18 years old to become self-employed in Spain.

It is a suitable legal form for businesses that carry out small projects.

Self-employment has certain characteristics that distinguish it from other legal forms:

• Personal management of the company (‘Gestión personal’)

• No initial capital (‘capital inicial’) or notarisation is required to set up the company.

• Unlimited liability. The self-employed person is liable with his or her personal and business capital for current and future debts.

• Taxation takes the form of personal income tax (‘IRPF’).

How do I become self-employed in Spain? What steps do I need to take?

Before you start your business in Spain, you need to take the following steps:

These two basic steps are mandatory in any case:

• Step 1 – Register with the Spanish Social Security (‘Seguridad Social’).

• Step 2 – Register with the Spanish Tax Agency (‘Agencia Tributaria’, also called Hacienda)

Depending on the case, the following steps may also be required:

When opening a business premises:

• Apply for an opening licence (‘licencia de apertura’) and/or a building licence (‘licencia de obras’) at the relevant town hall (‘ayuntamiento’).

• Notification of the opening to the ‘Consejería de Empleo, Formación y Trabajo Autónomo’.

When hiring an employee:

• Apply for the employer’s number (‘número de patronal’) at the ‘Tesorería General de la Seguridad Social’

• Notification of employment contracts to the ‘Servicio Público de Empleo Estatal’.

Further steps may include:

• Registration of personal files with the Spanish Data Protection Agency (‘Agencia Española de protección de datos’).

• Apply to the Spanish Patent and Trademark Office (‘Oficina Española de Patentes y Marcas’) to reserve the trade mark or company name.

• Voluntary registration in the commercial register (‘Registro Mercantil’).

What do I need to register as a self-employed person in Spain?

You will definitely need a

• NIE number in Spain
• Spanish national insurance number
• Spanish bank account
• An electronic certificate, if you want to register online

As a non-EU/EEA citizen you need a

• self-employed work visa to live and work in Spain and a
• TIE (‘Tarjeta de Identidad de Extranjero’), which certifies the legal residence of foreigners in Spain,

How do I register as an ‘autónomo’?

There are two main options:

Option 1 – Fill in the electronic document ‘Documento Único Electrónico (DUE)’ via the CIRCE information system.

Option 2 – Register directly with the Social Insurance Institution and the Tax Agency and, if necessary, follow the steps above.

How can I fill in the DUE?

In Spain, a company can be set up and started up electronically via the information system ‘Centro de Información y Red de Creación de Empresas (CIRCE)’.

As an ‘autónomo’ you must complete the standardised electronic document ‘Documento Único Electrónico (DUE)’, which consists of a large number of forms. The ‘Sistema de Tramitación Telemática (STT)’, an electronic processing system, will automatically carry out all the procedures required to set up the company, communicating with all the bodies involved (Tax Agency, Social Security, Spanish Data Protection Agency, Spanish Patent and Trademark Office, etc.).

There are two ways to complete the DUE:

1. You can go to a ‘Punto de Atención al Emprendedor’ (PAE), where you can get advice on your business project and start the process of setting up your company.

2. You can start the process yourself through the CIRCE portal by filling in the DUE (you will need an electronic certificate).

How do I register with the Spanish Social Security (‘Alta en Seguridad Social’)?

Registration for national insurance in Spain as an ‘autonomo’ is done electronically at the ‘Sede electrónica de Seguridad Social’ through the special system for self-employed workers (‘Régimen Especial de Trabajadores Autónomos’ – RETA).

Application deadline:

The application can be submitted up to 60 calendar days before the start of the activity. The official start date is the date of registration with the tax authorities.

Tip: Stick to the application deadline, otherwise you will have to pay full monthly contributions (even if you apply at the end of the month) and may also lose your right to a bonus.

Application requirements:

• A valid social security number (‘Número de Seguridad Social’). If you do not already have a national insurance number, you will be given one on the same application form.

• Electronic Certificate or Cl@ve PIN

Once you register as an ‘autónomo’ and start paying contributions, you will be covered by the social insurance system and will have access to the Spanish public health system.

If you are looking for additional private health insurance in Spain, ASSSA is the right and best contact for you:

How do I register my self-employment with the Spanish Tax Agency (‘Alta en Hacienda’)?

Once you have registered with the RETA social security system and before 60 calendar days have elapsed since the aforementioned registration, you must notify the Inland Revenue (‘Agencia Tributaria’) of the start of your business activity.

Important: You have to do register before you start your activities.

To do this, you must submit a type of registration declaration (‘declaración censal’), using form Modelo 036 (régimen ordinario) or 037 (régimen simplificado), which contains your personal details, the activity you are carrying out, the location of your business and the tax you have to pay.

If there are any changes to your details, you must submit a new ‘declaración censal’.

How to submit the form?

You can submit the Modelo 036 and Modelo 037 forms in the following ways:

• As a printout:
  • Available directly from the tax office or online as a PDF file.
  • You present the relevant form (completed and signed), together with the required documents, in person at the tax office (by appointment) or by registered post (‘correo certificado’).
• electronically via the Internet at the ‘Sede electrónica de la Agencia Tributaria’ with ‘certificado electrónico’ or ‘Cl@ve PIN’.

Which form should I use? Modelo 036 or 037?

Modelo 037 (‘declaración censal simplificada’) is a simplified declaration that is not as long and is sufficient for most self-employed persons in Spain.

You can use this simple form as a natural person if you meet the following conditions:

• You are resident in Spain,
• have a NIF (Número de Identificación Fiscal), i.e. you must have a NIE number in Spain,
• do not have the status of a large company,
• do not act through an agent,
• are not registered in the register of intra-Community operators or in the register of monthly VAT refunds,
• are not included in the special VAT (IVA) schemes, with some exceptions,
• do not make purchases that are not taxable under Art. 14 of the VAT (IVA) law,
• do not carry out distance sales (‘ventas a distancia’),
• are not subject to special taxes or taxes on insurance premiums,
• do not realise any mobile capital gains.
• Your fiscal domicile is the same as your administrative domicile.

How to fill in the form?

When filling in the form, you must specify the type of activity (‘tipo de actividad’) you carry out and select one of the codes of the tax on economic activities (Impuesto de Actividades Económicas -IAE). This is done on the basis of a comprehensive list containing the different types of commercial and business activities.

You will get a tax code, which is assigned to each business activity and used to describe your activity for tax purposes.

You must also indicate:

• The tax system which applies to you with regard to income tax (IRPF): Simplified Direct Estimation (‘Estimación directa simplificada’) or Objective Estimation (‘Estimación objetiva’)

• If there is an obligation to make tax withholdings or payments on account (‘retenciones e ingresos a cuenta’)

• If there is an obligation to make advance payments of income tax in the form of instalments?

• The VAT (IVA) system which is applicable to you

What does it cost to register as an ‘autónomo’ in Spain?

In principle, the process of registering as a self-employed person (‘autónomo’) costs nothing.

The only costs you have to take into account are the social security contributions.

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