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Who should register as autónomo

Anyone providing professional services or running a small business in Spain without forming a company must register as autónomo. That includes freelancers, consultants, digital nomads serving Spanish clients, property managers, and online sellers. Even if you work for foreign clients, spending significant time in Spain typically requires autónomo status for tax compliance. Registering ensures you can issue valid invoices, pay into social security, and access benefits like maternity leave or sick pay.

Step 1: Registering with Hacienda

The first step is registering with the Spanish Tax Agency (AEAT):

  1. Complete form 036 or 037. Form 037 is simplified for most freelancers. You’ll list your personal details, address, and economic activity codes (IAE epígrafes).
  2. Choose your taxation regime. Most professionals select direct estimation (estimación directa simplificada). Some trades (e.g., hospitality, transport) may opt for objective modules (módulos).
  3. Identify VAT obligations. Indicate whether you will charge VAT (most services at 21%) or are exempt.
  4. Submit the form. File online with a digital certificate or Cl@ve PIN, or visit a local AEAT office with an appointment.

Hacienda immediately issues your tax registration certificate, confirming your obligations and deadlines.

Step 2: Joining Social Security’s RETA

Within 60 days of registering with Hacienda (and before starting work), join the Régimen Especial de Trabajadores Autónomos (RETA) through Social Security:

  1. Create an account on the Import@ss portal or use a digital certificate.
  2. Submit the alta specifying your start date, activity, and contribution base.
  3. Select coverage options like temporary disability, professional contingencies, and cessation of activity (unemployment equivalent).
  4. Set up direct debit for monthly quotas from your Spanish bank account.

The system confirms your registration and provides a Número de Seguridad Social if you don’t already have one.

Understanding social security quotas

Since January 2023, autónomo contributions are linked to net monthly income (income minus deductible expenses). Bands range from under €670 to over €6,000. Key points for 2025:

  • Income up to €670: ~€230 per month.
  • €1,500–€1,700 income: ~€294 per month.
  • €2,330–€2,760 income: ~€350 per month.
  • Above €6,000: €500+ per month.

New autónomos can claim the tarifa plana: €80 per month for the first 12 months, extendable if income remains below the minimum wage. Young entrepreneurs under 30 (35 for women) often get longer reductions. Declare your expected income annually and adjust during the year if your earnings change significantly.

VAT (IVA) obligations

Most autónomos must charge VAT on services at the standard 21%, although reduced rates (10% or 4%) apply to specific sectors. Key VAT tasks:

  • Form 303 (quarterly). Declare VAT collected on sales minus VAT paid on expenses.
  • Form 390 (annual summary). Confirms totals from the year.
  • EU clients. Apply the reverse charge for B2B services in the EU; obtain a VAT number (ROI) and file form 349 for intra-community transactions.
  • VAT exemptions. Healthcare, education, and certain financial services may be exempt. Even if exempt, you still file form 303 with zero amounts unless fully exempted.

Keep invoices and receipts for all VAT entries. Digital accounting tools help track deadlines and prevent errors.

Income tax declarations

Autónomos pay income tax (IRPF) through quarterly installments:

  • Form 130 (direct estimation). Pay 20% of net profit each quarter, offset by income tax withheld by clients.
  • Form 131 (modules). Fixed quotas based on activity indicators like staff or vehicle count.

At year-end, file the annual income tax return (Renta, form 100) declaring worldwide income. Non-resident autónomos may have different rules—consult a tax advisor if you spend less than 183 days per year in Spain.

Bookkeeping and invoicing requirements

Spanish law requires autónomos to:

  • Issue invoices with sequential numbers, date, client data, description, VAT rate, and total.
  • Keep copies of issued invoices and receipts for expenses.
  • Maintain separate ledgers for income, expenses, and investment goods.
  • Store records for at least four years in case of tax inspections.

Tools like Quipu, Holded, or Xolo automate invoices and VAT tracking. For manual systems, create spreadsheets with clear categories and totals.

Common deductions and expense planning

Deductible expenses include:

  • Coworking memberships or office rent.
  • Professional services (lawyers, accountants, translators).
  • Software subscriptions and hardware purchases.
  • Travel costs related to client meetings (flights, hotels, mileage).
  • Utilities for home offices—proportionally allocated based on floor space.
  • Health insurance premiums up to €500 per person (double for disabled dependants).

Plan purchases strategically near quarter-end to balance VAT liabilities. Keep receipts and payment proof (bank statements) for every deduction.

Working with clients inside and outside Spain

  • Spanish clients: Charge VAT and apply retention (typically 15% IRPF, or 7% for new autónomos during the first three years) if they request it.
  • EU business clients: Generally no VAT if both parties have EU VAT numbers. Include the reverse charge clause on invoices.
  • Non-EU clients: Services exported outside the EU are often VAT-exempt but require proof of the client’s location.

Track international income separately. Currency fluctuations impact taxable income, so record invoices in euros using the European Central Bank rate on the invoice date.

When to incorporate a company

Consider forming a Spanish limited company (SL) when:

  • Net profits consistently exceed €60,000 per year.
  • You need to hire staff or bring in partners.
  • Clients require working with a corporate entity.
  • You want limited liability separate from personal assets.

Companies face different tax rates (25% corporate tax) and accounting obligations. Discuss timing with a legal and tax advisor to optimise your structure.

FAQs

Do I need a Spanish business bank account?

Yes, open a dedicated account to segregate business income and expenses. Many banks offer autónomo packages with integrated POS terminals.

What happens if I miss a tax deadline?

Late filings incur surcharges (1–15%) plus interest. File as soon as possible and pay outstanding amounts to reduce penalties.

Can I deduct expenses incurred before registration?

Yes, expenses incurred up to four years before registering can be deducted if they relate directly to your activity and you have invoices in your name.

How do I leave the autónomo system?

File form 036/037 and submit a deregistration on the Import@ss portal. Pay outstanding taxes and quotas. Keep records for four years in case of audits.

This guide is informational; get tailored advice by booking a call.