Spain is home to one of Europe’s largest freelance communities, offering attractive opportunities for those seeking self-employment. Known as autónomos, self-employed individuals in Spain enjoy a range of benefits, from simplified business administration to access to the country’s robust social security system. Here's how you can get started as an autónomo in Spain.
*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.
Simplified Business Model: Autónomos operate with fewer administrative demands and lower costs compared to registered companies.
Social Security and Public Benefits:
Contributions to social security provide health insurance, pensions, and unemployment benefits for you and your family.
Access to free government training programs for skills development.
There are two main categories:
Autónomo Professional: Freelancers or independent contractors who usually don’t hire employees (e.g., writers, designers).
Trabajador Autónomo: Self-employed workers who may hire others (e.g., taxi drivers, tour operators).
Key Points:
No minimum capital is required to start.
Full liability for debts and obligations rests with the autónomo.
Spain’s income tax for autónomos is progressive, based on annual earnings:
Up to €12,450: 19%
€12,450–€20,200: 24%
€20,200–€35,200: 30%
€35,200–€60,000: 37%
€60,000–€300,000: 45%
Over €300,000: 47%
Autónomos pay a 20% quarterly tax on profits:
The quarterly tax is an advance payment. At year-end, annual tax filings reconcile the amount owed, resulting in either refunds or additional charges.
Autónomos in Spain charge 21% VAT on goods and services. However, specific categories may fall under reduced rates:
10% VAT: Certain food items, healthcare products, and cultural services.
4% VAT: Basic necessities like bread and medicines.
VAT paid on business expenses can be deducted, reducing overall tax liability.
Obtain NIE (Número de Identificación de Extranjero)
An identification number for foreign residents, essential for business registration, social security, and other administrative processes.
Apply at a Spanish police station or through your local Spanish consulate.
Register with the Tax Authority (Agencia Tributaria)
Book an appointment and submit forms Modelo 036 or Modelo 037 at your local tax office.
Bring your passport, NIE, and bank details.
Open a Spanish Bank Account
Essential for contributing to the social security fund. Major banks like Santander, BBVA, and Sabadell are popular choices.
Non-residents may find international banks like HSBC or Deutsche Bank more accommodating.
Register for Social Security (RETA)
Enroll in the Special Regime for Self-Employed Workers (RETA) to pay monthly social security contributions.
First-year autónomos benefit from a reduced monthly payment of €60. Regular contributions are ~€289 per month.
Becoming an autónomo grants access to Spain’s public benefits system, including:
Health Insurance: Covers you and your family for medical care.
Pension: Eligibility for retirement benefits after age 65.
Unemployment Benefits: Up to 12 months of support in cases of business closure or injury.
Banking: Ensure the chosen bank collaborates with Spain’s Treasury and Social Security departments for smooth transactions.
Billing: Invoices must include:
Date and invoice number.
Autónomo name and identification (DNI/NIE).
Description of goods/services provided.
VAT breakdown, where applicable.
Working as an autónomo in Spain combines professional independence with access to robust public benefits. While the setup process involves several formalities, the benefits—such as simplified administration, tax advantages, and social security—make it worthwhile.