Spain – Self-Employment

How does self-employment work for expats in Spain?

Autónomo is the Spanish designation for a self-employed individual who operates a business outside of a corporate structure. The category spans freelancers, sole traders, tradespeople, gig economy workers, and independent professionals of all kinds. The legal basis lies primarily in the Workers’ Statute and the General Social Security Law, which together set out who is required to register and what duties that registration entails.

If you are living in Spain and regularly working for yourself — whether selling goods or providing services — you are legally obliged to register as an autónomo in order to declare your earnings and pay social security contributions. Put simply, if you engage in any activity that generates a profit for you personally, registration is required. Although the concept is broadly similar to being a sole trader in countries such as Ireland or Australia, the administrative procedures and contribution structures differ considerably.

Your eligibility to register as an autónomo depends on your nationality and the nature of your residency. EU, EEA, and Swiss nationals can apply for a NIE (Foreigner Identification Number) and, for stays beyond three months, obtain the EU Registration Certificate (EX-18), before completing the AEAT and TGSS registration steps. Citizens of countries outside the EU will generally need to obtain the self-employment authorisation (form EX-07) in advance. For non-EU nationals, this authorisation must be applied for at a Spanish consulate in your home country before travelling — attempting to obtain it after arriving in Spain will typically result in rejection.

The official designation for the sole trader arrangement is trabajador autónomo / persona trabajadora por cuenta propia. Registration is split between the Agencia Tributaria (tax census, via Modelo 036 or 037) and the Tesorería General de la Seguridad Social (TGSS), where enrolment in the RETA regime is completed through the Importass portal. No minimum capital is needed to register, though liability is unlimited — personal and business assets are treated as legally inseparable. This absence of liability protection is a significant contrast to company structures, and is worth exploring with a professional adviser if your business activities carry meaningful financial risk.

What are the different self-employment and business structures available in Spain?

Spain provides a range of legal frameworks to accommodate different business sizes and types. The most suitable option will depend on your anticipated income, exposure to risk, the number of co-founders involved, and your longer-term ambitions. The structures most commonly considered by expats are as follows:

• Autónomo (Sole trader / freelancer): The primary attractions of this structure are speed of setup, minimal initial cost, and straightforward closure. Earnings are taxed under the personal IRPF rate schedule, and administrative demands are comparatively modest. The key drawback is that liability is unlimited — there is no legal separation between personal and business assets. This is the most widely used starting point for expat freelancers and consultants.
• Sociedad Limitada (SL) — Private Limited Company: The SL is the preferred structure for the majority of small and medium-sized businesses because of its adaptability and the protection it extends to shareholders’ personal assets. It requires a minimum share capital of €3,000 and can accommodate anywhere from one to an unlimited number of shareholders. It is broadly comparable to a UK Limited Company or a US LLC.
• Sociedad Limitada Unipersonal (SLU): Where a single individual is the sole owner, an SLU may be formed instead. This is structurally identical to an SL but has only one shareholder — taxation and liability rules are the same. The sole practical distinction is that all public documentation must identify the company as being under single ownership.
• Sociedad Anónima (SA) — Public Limited Company: This structure is intended for large enterprises or those planning to list publicly. It requires a minimum share capital of €60,000, with at least 25% deposited at the outset. It is rarely chosen by individual expat founders.
• Comunidad de Bienes (CB) — Simple Partnership: Where two or more individuals are launching a venture jointly, a Comunidad de Bienes is one option. This is an informal partnership arrangement rather than a distinct legal entity, and each partner bears full personal liability for any business debts.

A question frequently raised by expats is whether to operate as an autónomo or to incorporate an SL. For most freelancers and small-scale operators, the autónomo route is quicker to establish, less expensive to maintain, and far less administratively demanding. Forming an SL involves greater upfront costs, notarial fees, and more rigorous accounting obligations.

A commonly cited rule of thumb is that below roughly €70,000 of annual income, the autónomo structure is simpler and generally more cost-effective. Once earnings exceed around €70,000, an SL typically becomes more tax-efficient due to the lower corporate tax rate and additional deductible expenses. This should always be verified with a qualified Spanish tax adviser based on your individual circumstances.

How do you register as self-employed in Spain?

For the majority of freelancers, consultants, and remote workers, almost the entire registration process can now be completed online through the Agencia Tributaria and the TGSS. Applicants who already hold a Spanish digital identity — via Cl@ve or an FNMT digital certificate — can often complete registration on the same day. The steps below apply to most scenarios, though non-EU nationals must first secure their self-employment authorisation as described above.

1. Obtain your NIE (Número de Identidad de Extranjero): Before anything else, you need a Tax Identification Number (NIF) or Foreigner Identification Number (NIE). This unique identifier underpins every tax and administrative interaction in Spain. EU nationals can obtain the NIE from their nearest police station or immigration office using form EX-15; non-EU nationals will ordinarily receive theirs as part of the visa process.
2. Obtain a digital certificate or Cl@ve credentials: Secure Cl@ve credentials or a digital certificate issued by the Spanish Mint (FNMT). Both are free of charge and are accepted universally by the AEAT and TGSS. Having either in place means you can complete the full registration procedure electronically without visiting any office in person.
3. Register with the Tax Agency (AEAT) — Alta Censal: Submit the census declaration to notify the tax authority that you are commencing an economic activity. At this stage you will select your IAE epígrafe (activity code) using either Modelo 036 (standard version) or Modelo 037 (simplified version). You will also specify your VAT status and, where relevant, request intra-EU registration. This is submitted via the AEAT’s Censos WEB service.
4. Enrol in RETA (Social Security for the self-employed): This step registers you in Spain’s public healthcare and pension system under the self-employed regime (RETA). Enrolment must be completed within 60 days of your Hacienda registration. During this process you declare your projected annual income, which determines your monthly social security contributions. Registration is handled via the TGSS Importass portal at importass.seg-social.es.
5. Apply for the reduced flat rate (if eligible): From 2025 onwards, qualifying first-time autónomos may request the €80/month discounted contribution rate for the initial 12 months at the point of RETA enrolment. This application must be made during registration, not afterwards. Check the TGSS website for the qualifying criteria in force at the time you register, as the flat rate and its duration can be revised annually.
6. Register for any additional local licences (if applicable): If your business occupies physical premises — for example a restaurant, retail outlet, or hairdressing salon — you may additionally need a Licencia de Apertura (Opening Licence) from your local town hall, along with inspections covering areas such as health and safety, fire compliance, and accessibility.
7. Set up compliant invoicing software: Once registered, you are entitled to issue invoices bearing your NIF and must adhere to Spain’s invoicing regulations. Spain is progressively rolling out mandatory certified e-invoicing (“Veri*factu”) under Royal Decree 1007/2023 as amended — monitor AEAT announcements and confirm that your chosen invoicing tool meets the current requirements.

With Cl@ve or a digital certificate in place, both the AEAT census filing and RETA enrolment can be completed online on the same day, taking effect from the start date you specify. The costs of autónomo registration itself are minimal — the principal recurring expense is the monthly RETA contribution. Always check current figures at the official Agencia Tributaria website and the Seguridad Social portal.

How do you set up a company in Spain as an expat?

Incorporating a Sociedad Limitada (SL) in Spain opens the door to operating within one of Europe’s most dynamic economies. A clear understanding of the registration procedure, legal obligations, and ongoing duties is essential before proceeding. Importantly, there are no restrictions on foreign ownership of a Spanish SL — non-residents are entirely free to own one, provided they hold a foreign ID number (NIE) or a residency card (TIE).

1. Obtain your NIE: A NIE is a prerequisite for all non-Spanish residents. The process generally takes between two and four weeks, so it is advisable to begin as early as possible, since everything that follows depends on it.
2. Reserve your company name: The name of your SL must be unique and must include “Sociedad de Responsabilidad Limitada,” “Sociedad Limitada,” or the abbreviations “SRL” or “SL.” You will need a Certificado de Denominación Social from the Central Commercial Registry to verify that your chosen name is available.
3. Open a business bank account and deposit share capital: Open a dedicated business bank account and deposit the minimum share capital of €3,000 (as of 2025). The bank will issue a certificate confirming the deposit, which the notary will require at the signing stage. Note that amendments to Spanish law have introduced the possibility of incorporating an SL with as little as one euro of share capital, removing the previous €3,000 floor — though companies below that threshold must comply with additional creditor protection measures. Always verify the requirements currently in force.
4. Draft company bylaws (estatutos sociales): Prepare the internal rules of your company (estatutos sociales), which define the management structure, share capital arrangements, and permitted activities. A Spanish lawyer or notary can assist in drafting these; while standard templates are available, they should be carefully reviewed to ensure they suit your particular situation.
5. Sign the Deed of Incorporation before a notary: Book an appointment with a Spanish notary. All shareholders must either be present in person or grant power of attorney to a representative. Notary fees can range from a few hundred to over a thousand euros depending on complexity — confirm the current fee with your chosen notary in advance.
6. Register with the Commercial Registry: Lodge the notarised deed with the Provincial Commercial Registry within two months of signing. Once this step is complete, your SL acquires legal personality.
7. Register with the Tax Authority (AEAT): File Modelo 036 to register for tax purposes, select your IAE activity code, and register for VAT (IVA). A Digital Certificate from the Spanish Tax Agency is compulsory for all electronic filings.
8. Enrol directors in Social Security: If you are an active director-shareholder, you will generally need to register either under RETA or the general employee Social Security regime, depending on the percentage of the company you own. The rules in this area are nuanced and specialist advice is recommended.

The process as a whole typically spans several weeks, largely because of notary scheduling and registry processing times. Once established, your SL must file an Annual Corporate Tax Return (Impuesto sobre Sociedades) and submit Annual Accounts to the Commercial Registry within six months of the end of the fiscal year. Refer to the Central Commercial Registry and the Agencia Tributaria for current requirements and applicable fees.

Can you work as a digital nomad in Spain?

Spain formally introduced its Digital Nomad Visa in January 2023 as part of the Startup Act (Ley de Startups), a wide-ranging package of measures aimed at drawing in entrepreneurship, innovation, and overseas investment. Officially designated the Visado de Teletrabajo de Carácter Internacional (International Telework Visa), it has rapidly established itself as one of the most comprehensive and respected remote-worker pathways in Europe.

The visa allows remote workers to reside and work in Spain for up to one year when the application is made abroad through a Spanish consulate, or up to three years when applying from within Spain for a residence authorisation. The residence permit is renewable for further periods, enabling a total stay of up to five years, at which point applicants may qualify for long-term residency status.

Applicants must satisfy several core eligibility conditions:

• Income: Applicants must demonstrate a minimum monthly income equivalent to 200% of Spain’s Minimum Interprofessional Salary (SMI). As of 2026, this equates to approximately €2,850 or more per month for a single applicant, with higher thresholds applying when dependents are included (75% of the SMI for the first dependent and 25% for each additional dependent). Because the income requirement is pegged to the SMI, it tends to rise when the SMI increases — always check the current figure with the immigration authority before submitting an application.
• Professional qualifications: Applicants must hold a university degree, a professional qualification certificate, or demonstrate at least three years of relevant professional experience.
• Work relationship: Evidence is required of active employment or freelance contracts that have been in place for at least three months, with the employing company having been trading for at least one year.
• Income source: You may work with a Spanish-based company, provided that such work accounts for no more than 20% of your total professional activity.
• Other requirements: A clean criminal record and valid private health insurance are both mandatory.

Legal professionals advise applicants that at least 80% of revenue must originate from clients located outside Spain, and that digital nomads have the option of electing into the so-called “Beckham Law” to benefit from a flat 24% tax rate on Spanish-source income up to €600,000. This represents a substantial advantage over the standard progressive IRPF rates, which can climb as high as 47%.

The Digital Nomad Visa is exclusively available to non-EU/EEA nationals. EU and EEA citizens do not require a specific visa to work remotely in Spain, but must register their residency if they remain for longer than three months. For the most up-to-date requirements and access to the application portal, consult the Ministry of Inclusion, Social Security and Migration or the Extranjería portal.

What taxes and social contributions apply to self-employed expats and business owners in Spain?

Spain’s tax framework for self-employed individuals and company owners operates across several dimensions: personal income tax (IRPF), value added tax (IVA), social security contributions, and — for companies — corporate income tax (Impuesto sobre Sociedades). Developing a thorough understanding of how these elements interact is essential before you begin any commercial activity.

Income tax (IRPF) for autónomos

Self-employed workers are taxed on their annual net profits through IRPF. Many autónomos are also required to make quarterly advance payments (Modelo 130), depending on their chosen accounting method. Spain’s IRPF scale is progressive, running from approximately 19% at the lowest bands to 47% at the highest — unlike the withholding arrangements that apply to salaried employment, autónomos must personally manage these payments through quarterly submissions. Every autónomo is required to file an annual Renta (income tax return) without exception, irrespective of income level.

VAT (IVA)

The standard VAT rate of 21% applies to most services and products, with lower reduced rates available in certain sectors. VAT is reported on a quarterly basis via Modelo 303, together with annual summaries where applicable. If you supply services to business clients in other EU member states, you may also be required to register for intra-EU VAT (ROI/VIES). Always confirm the rate applicable to your activities with the Agencia Tributaria.

Social Security contributions (RETA)

Since 2023, autónomo contributions have been structured according to income. Each earnings bracket carries a corresponding monthly contribution level, and you are permitted to revise your income estimate several times throughout the year. The general contribution rate for 2025 is 31.40% applied to your selected base. Unlike the PAYE systems found in many other countries — where contributions are deducted at source by an employer — autónomos are entirely responsible for calculating, paying, and adjusting their own monthly contributions. A discounted €80/month flat rate is available to qualifying new autónomos for the first 12 months (as of 2025). Social security contributions are deductible as a business expense for income tax purposes.

Corporate income tax for SL companies

Both SLs and SAs are subject to the standard corporate tax rate of 25%. Newly formed SLs benefit from a substantially reduced rate of 15% during their first two years of positive taxable income. This reduced rate applies to the initial €300,000 of taxable profit; any amount exceeding this threshold is taxed at the standard 25%. For tax periods commencing in 2025, micro-enterprises with a net turnover below €1 million benefit from a reduced rate of 21% on the first €50,000 of taxable income. Small entities (SMEs) with turnover below €10 million benefit from a transitional rate of 24% for tax periods beginning in 2025, with this rate progressively decreasing to 20% by 2028.

Tax treaties

Spain maintains an extensive network of double taxation agreements (DTTs) with a large number of countries. These treaties can significantly affect how your income is taxed if you have income sources or tax residency obligations in more than one jurisdiction. You should always check whether a treaty exists between Spain and your home country, and seek advice from a cross-border tax specialist. The Agencia Tributaria (AEAT) publishes a complete list of applicable treaties on its website.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Spain?

In recent years, Spain has made a deliberate effort to position itself as a compelling base for overseas entrepreneurs, investors, and innovators. A number of programmes and incentives are directly relevant to expats.

The Startup Act (Ley de Startups)

As of January 2026, Spain’s Digital Nomad Visa continues to operate within the Startup Act framework. The Startup Act (Law 28/2022) introduced a suite of measures encompassing the Digital Nomad Visa, the “Beckham Law” special tax regime for newly arrived residents, and enhanced conditions for startup investment and R&D deductions. The legislation is intended to foster a more favourable regulatory and fiscal environment for technology-driven businesses and internationally mobile professionals.

The Beckham Law (Régimen Especial para Trabajadores Desplazados)

Qualifying digital nomads and new tax residents can elect to apply the “Beckham Law,” which provides a flat income tax rate of 24% on Spanish-source earnings up to €600,000. This is substantially more attractive than the standard top IRPF rate of up to 47%, making it a meaningful incentive for higher earners moving to Spain. The regime applies for the year of arrival and the five years that follow. Applicants must not have been Spanish tax residents at any point during the preceding five years, and must file their application within six months of registering with Social Security. Consult the Agencia Tributaria or a specialist tax adviser to confirm current eligibility conditions.

New autónomo flat-rate contribution

In 2025, eligible first-time autónomos can apply for the €80/month reduced social contribution rate covering the first 12 months of their RETA registration. A further 12-month extension of this reduced rate is available provided income remains below the annual Spanish minimum wage (€15,120 per year as of 2025). Refer to the TGSS for the most current qualifying conditions.

Corporate tax incentives for new companies

Newly established entities undertaking economic activities qualify for a 15% corporate tax rate in the first tax period in which their taxable income is positive, and in the following period. Additional deductions are available for R&D investment and employment creation. Under the Patent Box regime, qualifying companies may benefit from a reduced effective tax rate of 10% on income attributable to certain intellectual property rights.

CIRCE and PAE — Fast-track company creation

Notaries and intermediaries involved in the formation of limited liability companies are required to inform founders about the benefits of using the Entrepreneur Service Points (PAE) and the Information Centre and Business Creation Network (CIRCE) — both online platforms designed to simplify the company incorporation process. These tools can substantially reduce the administrative workload for first-time founders. Visit circe.es for further details.

ICEX and Invest in Spain

ICEX España Exportación e Inversiones is Spain’s national agency for trade and investment promotion. Its Invest in Spain platform offers practical guidance for overseas investors and entrepreneurs, covering sector-specific information, the legal framework, and connections to regional investment promotion bodies. Many of Spain’s autonomous communities — including Catalonia, Madrid, and the Basque Country — also operate their own investment promotion agencies with dedicated programmes for foreign entrepreneurs.

What are the practical challenges of being self-employed or running a business in Spain?

While Spain’s self-employment system is well-organised and increasingly accessible online, expats regularly run into a number of practical difficulties. Understanding these challenges in advance — and securing appropriate local support — can save considerable amounts of time, money, and frustration.

Language barriers in official processes

The vast majority of official forms, tax portals, and registry procedures operate exclusively in Spanish, with little or no provision for other languages. Even digitally proficient expats frequently struggle with the terminology — particularly around tax form designations, social security category codes, and activity classifications — without a solid command of Spanish. Engaging a professional adviser who can navigate these systems in both Spanish and your own language is strongly recommended.

The role of the gestor

Many autónomos engage a gestor (administrative consultant) or accountant to manage their compliance. Most gestores offer service packages starting from approximately €60–€80 per month (as of 2025), which typically cover initial registration, quarterly tax filings, VAT returns, and annual accounts. A gestor performs a role roughly equivalent to that of a combined bookkeeper and tax agent in other systems — they handle compliance obligations on your behalf and are licensed professionals regulated by their professional college. Although it is technically possible to manage your own filings, it is strongly advisable for newcomers to engage a gestor, both to ensure compliance and to avoid costly errors.

Banking access for self-employed foreigners

Opening a business bank account in Spain as a foreign national can be more involved than in certain other countries. Many traditional banks require in-person appointments, proof of address (empadronamiento), a valid NIE, and business registration documentation. Online banks and fintech providers offering multi-currency IBAN accounts can serve as a practical stopgap while your paperwork is in progress, though you will ultimately need a Spanish bank account to accommodate the direct debit for RETA contributions.

Quarterly tax obligations and deadlines

Most autónomos are required to submit quarterly VAT returns (Modelo 303) and quarterly IRPF prepayments (Modelo 130) between the 1st and 20th of April, July, and October, and between the 1st and 30th of January for the fourth quarter (with adjustments when the final date falls on a non-working day). Missing these deadlines incurs surcharges that escalate the longer they go unpaid. A gestor will typically oversee these submissions on your behalf, but legal responsibility for compliance rests with you as the registered autónomo.

Invoicing and contract norms

Spain imposes specific legal requirements on the format and content of invoices, including compulsory elements such as sequential invoice numbers, VAT identification numbers, the applicable VAT rate, and the date of supply. Spain is progressively implementing mandatory certified e-invoicing (“Veri*factu”) requirements, so you must ensure that any invoicing tool you use is fully aligned with the latest AEAT guidance. When billing overseas clients, the correct VAT treatment will depend on where the client is located and whether they are a business or a consumer — your gestor can advise on the appropriate approach for each situation.

Common pitfalls

Frequent mistakes include failing to claim all allowable deductible expenses, overlooking the annual VAT summary (Modelo 390) due in January, blurring the line between personal and business expenditure, neglecting to update your income bracket (resulting in months of overpaying contributions), and submitting tax payments late (surcharges begin at 5% and escalate rapidly). Building a solid working relationship with a competent gestor and maintaining meticulous records from the outset is the single most effective way to steer clear of these pitfalls.

Frequently asked questions

Can I be employed and self-employed at the same time in Spain?

Yes, it is perfectly legal in Spain to hold a salaried employment contract while simultaneously being registered as an autónomo. You will be required to make Social Security contributions under both regimes, though specific rules govern how these are coordinated. Depending on the terms of your employment contract, your employer may need to be notified. It is advisable to consult a gestor or employment lawyer to ensure that both registrations are correctly handled from the outset.

How do I handle invoicing foreign clients as an autónomo in Spain?

When billing business clients located outside Spain (B2B transactions), VAT is generally not charged where the client is based in another EU member state and holds a valid VAT registration — the reverse charge mechanism applies in such cases. For clients outside the EU, VAT similarly does not typically apply. However, these transactions must still be reported on your quarterly VAT return and, for EU clients, on the Modelo 349 intra-EU summary. The correct treatment always depends on whether the service is governed by the general location rule or one of its exceptions, so confirm the position with your gestor.

What happens to my autónomo or business status if my visa or residency changes?

Your autónomo registration is tied to your entitlement to work in Spain. If your visa or residence permit lapses, is not renewed, or changes category, you may forfeit the right to remain registered as self-employed. If you cease activity, you should formally deregister — known as filing a baja — with both AEAT and TGSS, to avoid being held liable for ongoing contribution obligations. Where your status changes as a result of switching to a new visa category (for instance, transitioning from a standard work permit to a Digital Nomad Visa), consult an immigration lawyer to ensure continuity and compliance throughout the process.

Do I need to speak Spanish to set up a business in Spain?

Technically, no — it is possible to appoint a representative or act through power of attorney. In practice, however, virtually all official processes, government online portals, tax forms, and legal documentation are in Spanish. If your command of the language is limited, engaging a bilingual gestor or lawyer to act on your behalf is strongly recommended. For company incorporation specifically, a sworn translator may be required for certain documents originating abroad.

Can I run a limited company (SL) in Spain as a non-resident?

Yes — a non-resident may own an SL, provided they hold a foreign ID number (NIE) or a residency card (TIE). However, where you are the sole director and are actively running the company from within Spain, you may be regarded as a Spanish tax resident, with the personal tax obligations that this entails. If you intend to manage the company remotely from abroad, you should take specific advice on permanent establishment rules and the tax residency implications for directors.

Is the Beckham Law available to all new residents in Spain?

The Beckham Law (the special expatriate tax regime) is open to individuals who become Spanish tax residents for the first time and who have not held Spanish tax residency at any point during the five years prior to their arrival. The application must be submitted within six months of registering with Social Security. The regime provides a flat 24% IRPF rate on Spanish-source income up to €600,000 for the year of arrival and the subsequent five years. Following the expansion of the regime under the Startup Act, it now extends to digital nomad visa holders and entrepreneurs as well. Consult the Agencia Tributaria or a specialist tax adviser for the most current eligibility criteria.

What is the minimum I need to earn before registering as an autónomo?

The obligation to register arises from engaging in the activity itself, not from reaching a particular income threshold. If you are providing services of any kind and deriving a profit from doing so, registration is required. Where income is genuinely sporadic and negligible, registration may not be strictly obligatory — but this is a contested grey area. Most tax advisers recommend registering in any case to avoid the risk of penalties. There is no officially established minimum earnings level that exempts someone from the registration requirement.

How long does it take to incorporate an SL in Spain?

The overall timeline depends on how quickly you can compile the necessary documents, obtain a NIE, open a business bank account, and book a notary appointment. In practice, the complete process — from reserving the company name through to formal entry in the Commercial Registry — generally takes between four and eight weeks. Using the CIRCE online platform or working with a specialist company formation firm can help to accelerate this. The notarised deed of incorporation must be lodged with the Provincial Commercial Registry within two months of the date it is signed.