Rules for setting up freelance in Spain?

Are you planning to come and settle in Spain? Note that there is a status similar to that of the French auto-entrepreneur. In Spanish, we speak of the status of autonomous. It thus designates a natural person who works on his own account, independently. As in France, this status allows you to create your activity without however creating a company as such. We explain in detail in this article, how to work as a self-employed person in Spain.

First step: get your NIE

The first essential step is to obtain a NIE , Foreign Identification Number. You will be asked for this number in almost all your daily procedures, such as opening a bank account or having a telephone subscription. It is compulsory to live in Spain for the long term, but also to work as a self-employed person or as an employee.

To do this, go to the sede.administracionespublicas.gob.es site to download the Ex-15 form, and request an appointment. You will have to go to the police station indicated on the date of your meeting with the requested documents.

The administrative procedures to become autónomo

After obtaining your NIE, you will need to register, as an autónomo, with the Tax Center (Hacienda) and Social Security.

Registration at the Tax Center

This registration is a mandatory step for anyone wishing to become an autónomo. You can go to the center closest to you and show your NIE and ID. You will have to fill out a form (036 or 037 depending on your activity) on which will appear your personal information and the activity you are going to carry out.

Social security registration

Another essential step: registration with Social Security. After getting your form at the tax office, you have 60 days to register for the Self-Employed Worker Scheme (RETA in Spanish). By presenting your NIE, an identity document and the form obtained previously, you will complete a new form called TA0521.

Remember to open a Spanish bank account and send this number to Social Security so that they can debit you for your contributions.

Contributions and charges related to the autonomous status

The Autónomo will be subject to income tax, VAT, as well as social contributions.

The income tax of individuals (Renta de las Personas físicas Spanish)

The income tax is progressive, that is to say it will depend on the amount of income you have received. So your tax rate will increase if your income increases.

This tax is based on all income received during the fiscal year. It is advisable to carry out a withholding at source on your invoices and to pay this withholding to the tax authorities. You have to imagine it as an advance on future taxes. The deduction to be made is 15%. This rate may possibly drop for new self-employed workers.

This advance is subsequently adjusted via your annual declaration. Also note that in Spain, the tax bases are variable. In addition, as in France, the system operates with income in installments.

VAT (IVA in Spanish)

The IVA rate is now 21%. It works exactly like VAT, that is, it is an indirect tax on consumption. Thus, it will have to be entered on your invoices.

Please note, if your customers are not based in Spain, you will also need to obtain an intra-community VAT number.

Social charges

The amount of social security contributions depends on the year in which your micro-enterprise is operating.

During your first year as a self-employed person, they are 50 € per month (rate for the year 2020).

During the second and third year, the contributions increase gradually. From the fourth year, the minimum contribution to be paid is 286.15 € monthly (rate for the year 2020).

These social charges will cover your incapacity and work accidents, as well as your work-related illnesses.

The advantages of being autonomous

Like the self-employed status, this self-employed status is the fastest and easiest to obtain if you want to start working as a self-employed person in Spain. Plus, it requires less management and accounting than starting a company as such.

You will be able to work where you want and when you want. In addition, the cost of living is generally less expensive in Spain than in France. Thus, if you work with French clients, you will be able to stand out by practicing more attractive prices than your competition.

The procedures may seem tedious to you, but in reality, the papers can be obtained quite quickly if you follow all the steps of the procedure. However, if you have any doubts, you can get help from a firm specializing in all these administrative procedures.

Finally, if you need to find accommodation in Spain, do not hesitate to contact us. We will be delighted to support you in this new project