Registering as a self-employed person (autónomo) in Spain can initially seem like a daunting task, but with the right and useful information, the process is no longer frightening and holds great promise. In our guide we will try to cover all the necessary steps, documents and other important aspects that will help you to successfully register as a Spanish autónomo.

What Is an Autónomo in Spain?

Autónomo is a self-employed person who works independently without being employed by any company. This status applies to freelancers, entrepreneurs, small business owners and professionals who offer their services directly to clients.

Why Register as an Autónomo?

Registering as an autónomo is legally required if you plan to earn an income from self-employment in Spain. What do you get out of it?

1. Firstly, access to social security: Autónomo status will provide you with health insurance, retirement and unemployment benefits (should the need arise).
2. Secondly, professional credibility: Registering as a self-employed person legitimizes your working activity in Spain.
3. Thirdly, tax compliance: Autónomo can invoice clients and deduct expenses from the tax base.

Pros and Cons of Autónomo in Spain

Advantages:

• Ease of registration and administration.
• Independence from employers, working ‘for yourself’.
• Flexibility in doing business.
• Ability to choose a tax regime.

Disadvantages:

• Unlimited liability for obligations.
• Mandatory monthly contributions to the social security system (in Spain they are quite substantial).
• Registering as an autónomo in Spain

So, below we offer you our step-by-step instruction to registering as an autónomo in Spain in 2024.

Step 1: Obtain an NIE (Número de Identificación de Extranjero)

The NIE is a unique identification number for foreigners in Spain, required for any financial transaction or legal activity. If you don’t have an NIE yet, you’ll need to apply at a police station or Spanish consulate in your home country.

Documents typically required include:

• Passport or EU ID card.
• Completed EX-15 application form.
• Proof of address (utility bill, rental contract, etc.).
• Payment of a small fee.

Step 2: Register with the Tax Authorities (Agencia Tributaria)

The second step: you’ll need to register with the Spanish Tax Office (Agencia Tributaria) to inform them of your self-employed status. This involves:

Completing Form 036 or 037:These forms declare your business activity. Form 037 is shorter and simpler, suitable for most individuals starting out as autónomo. If you have a more complex business structure, use Form 036.

Indicating Your Economic Activity Code (IAE): You’ll choose an IAE code that corresponds to your professional activities (e.g. copywriter, graphic designer, real estate agent, consultant, interpreter etc.).

Step 3: Register for Social Security (Seguridad Social)

After you’ve registered with the Tax Authorities, you have 30 days to register with the Social Security system:

• Fill out the TA.0521 form to enroll in the Special Scheme for Self-Employed Workers (RETA).
• Choose your social security contribution base: This determines how much you will pay each month and what benefits you will receive. The base can be adjusted twice per year.
• Pay the monthly social security fee: The minimum contribution for a new autónomo in 2024 is expected to start at around €60-80 per month, with a progressive increase over the first three years, depending on your income.

Step 4: Open a Business Bank Account (Optional but Recommended)

While not mandatory, opening a separate bank account for business transactions helps keep your finances organized and simplifies tax reporting.

Step 5: Get a Digital Certificate (Certificado Digital)

The digital certificate allows tax and social security matters to be handled online, which significantly saves time and simplifies administrative tasks. It can be obtained in the following ways:

Option 1: Request via the website of the Fábrica Nacional de Moneda y Timbre (FNMT) using the following algorithm:

• Make sure you have an NIE or DNI: The digital certificate requires an identification number.
• Set up your computer: Install the necessary software. This usually involves installing a browser (Internet Explorer or Mozilla Firefox are the most common) and the required module from FNMT.
• Visit the FNMT website: Go to the official website of the Fábrica Nacional de Moneda y Timbre (FNMT): https://www.fnmt.es.
• Request a certificate: Select the option for individuals. Enter your details (NIE/DNI, name, email). Save the request code that will be issued after the certificate process is complete. This certificate can be transferred from PC to other devices (laptop, smartphone, etc.)

Option 2: Visit the office in person:

• With the request code and an identity document (passport, DNI or NIE), you will have to choose the nearest office of the tax institution (Agencia Tributaria) or go to another authorized centre to confirm your identity: http://mapaoficinascert.appspot.com

Recent Changes and Updates for Autónomo in 2024

New Social Security Contribution System

From 2023, a new system was introduced in which social security contributions depend on actual income. The contribution rates continue to be adjusted in 2024 are the following:

Year 1

Preferential rate (Tarifa Plana): For the first 12 months, a newly minted autónomo can pay €60 to 80 per month.

After the first year

• Next 6 months: The contribution increases, to approximately €160 euros per month.
• After 18 months: The contribution continues to increase to the full rate, which depends on the chosen base. This is usually around €300 per month or more, it all depends on the income and the chosen base for calculating the contributions.

Important:

• Contributions may vary depending on changes in legislation and individual circumstances.
• Benefits may not apply to everyone, it is important to check the conditions at the time of registration.

Enhanced Unemployment Benefits

Changes in the unemployment benefit system (known as «paro») provide more extensive coverage for an autónomo. Now, a qualifying autónomo can receive benefits for longer periods under more flexible conditions if their business faces financial difficulties.

Common Pitfalls and How to Avoid Them

Late Registration

Failing to register on time can result in fines. Ensure you register with both the Tax Authorities and Social Security within 30 days of starting your activities.

Not Keeping Proper Records

Proper bookkeeping is crucial. Keep all invoices, receipts, and documents related to your income and expenses, as these will be necessary for quarterly and annual tax returns.

Ignoring Quarterly Tax Obligations

Remember to submit your tax declarations (IRPF and IVA) every quarter. Missing these deadlines can lead to penalties.

Costs and Fees for Autónomo

• Monthly Social Security Fee: Starting at €60 and varying based on income.
• Income Tax (IRPF) Payments: Based on your earnings, with quarterly and annual obligations.
• Value added (IVA) Payments: Applies to services and goods subject to VAT.

Benefits and Deductions Available to Autónomo

Home Office Deductions

If you work from home, a percentage of rent, utilities, and internet can be deducted.

Business Travel and Meals

Costs related to business travel, client meetings, and meals can be deducted under specific conditions.

Equipment and Supplies

Deductions apply for tools, computers, and materials used for business.

Hiring Employees or Subcontracting as an Autónomo

If your business grows and you need extra help, you can hire employees or subcontract other professionals. However, remember to register them with Social Security and comply with employment regulations.

Special Considerations for Foreigners

Non-EU citizens need a residence and work permit to register as an autónomo. If you’re already an EU citizen, the process is simpler but still requires an NIE.

Terminating Your Autónomo Status

If you decide to stop being an autónomo, you’ll need to deregister with both the Tax Authorities and Social Security. This involves submitting Form 036 or 037 to the Tax Authorities and a deregistration form to Social Security.

Resources for Autónomo in Spain

Some online resources and government websites can help you register and manage your autónomo status:

• Tax Service (Agencia Tributaria) https://sede.agenciatributaria.gob.es
• Help with tax-related issues.
• Social Security (Seguridad Social) https://www.segsocial.es/wps/portal/wss/internet/Inicio
• Registration and social security contributions.
• Chambers of Commerce (Cámaras de Comercio) https://www.camara.es
  Providing advice and support to small businesses.

As you can see, registering as an autónomo is a very real path to independent activity in Spain, with flexible rules and many possibilities. If you set clear administrative tasks, strictly fulfil your tax obligations and comply with all legal requirements, the whole process will run smoothly.

By proceeding step by step and without rushing, you can start your way of self-employment in Spain today, and we, in turn, wish you good luck on your chosen path!

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