If you prefer to be autonomous, to live with more freedom of action, freelance status may be just what you’re looking for. In Spain, as in France, certain formalities are required. However, it’s not that complicated. Here are a few explanations to help you become a freelancer in Spain!
Freelance status in Spain
The autonomo status in Spain represents a different way of working and enjoying all that this beautiful, sunny country has to offer. Managed by the Regimen Especial de Trabajo Autonomo (RETA), this status has undergone several important reforms in recent years, and encompasses a number of different features.
To register as a freelancer in Spain, make an appointment with La Hacienda, who will help you with your paperwork and put you in touch with a professional who is familiar with this kind of procedure. Alternatively, you can fill in the documents directly online! In both cases, you’ll need to have your NIE number, your social security card and a RIB from your business account to hand. This is when you’ll need to define your status and your place of practice. The simplest status to set up is that of autoentrepreneur in Spain.
The first step in setting up a business in Spain is to register with the Hacienda: Impuesto de Actividades Economicas. Form 036/037 must be duly completed, indicating the date of commencement of activity, company name, nature of activities, etc.
Once you’ve done this, you’ll receive an identification number, which you’ll need to quote in all correspondence with the Hacienda and Spanish tax authorities. If you prefer to be a self-employed entrepreneur in Spain, you won’t have to pay any capital at the start of your business.
What are the obligations of a freelance contractor in Spain?
La Hacienda is the place to go if you have any queries. However, carrying out certain checks can save you a lot of trouble. For example, if you have an intra-Community VAT number, it’s best to check its validity by logging on to the European Taxation and Customs Union website. Checking your VAT number in Spain is simple and only takes a few minutes. In particular, you’ll need it to justify the presence of VAT on invoices to your customers.
Freelancers in Spain are also advised to keep up-to-date accounts and anticipate future costs:
- Social security contributions in Spain are managed by the Seguridad Social. Contributions represent 29.9% of sales and must be paid at the end of each month. The minimum charge for self-employed workers is €267, and the contribution base can be modified several times a year. Penalties apply for non-payment of social security contributions in Spain;
- IRPF in Spain (IRRP in France) is the income tax payable by all individuals, and can be included on invoices under the heading “retencion”. In France, this is a flat-rate income tax deduction. Recovered like other charges by the Hacienda, the amount of IRPF in Spain is 9% for the first three years, then 20% for subsequent years.
You’re convinced: you want to do business in Spain? Developing a business takes hard work and determination, but you’ll succeed if you trust your intuition and take all the steps required of a freelancer. You can ask for help from Spanish expatriates and explore the terrain by spending a month or two in the city, check out our great offer of short term rentals in Barcelona. Start your own business today!
