Who Can Become Self-Employed in Spain?

Embarking on the journey of self-employment in Spain is an exciting endeavor, but it’s crucial to understand the requirements, processes, and responsibilities involved. While working for yourself can be incredibly rewarding, it demands careful planning and thorough knowledge of the legal framework.

What Does It Mean to Be Self-Employed in Spain?

Being self-employed in Spain, or “autónomo,” means running your own business or providing services independently and directly to clients. This involves issuing invoices and contributing to the Spanish Social Security system (Seguridad Social).

As a self-employed worker, you’re fully responsible for your activity and must manage your taxes and accounting, unlike an employee who typically has these handled by an employer.

Can You Issue Invoices Without Being Registered as Self-Employed?

Yes, under specific conditions, it is possible to issue invoices without formally registering as self-employed with the Social Security system.

You must register with the Tax Agency (Hacienda) using forms Modelo 036 or 037.
The activity must be occasional and earn less than the Spanish minimum wage (SMI).

However, failing to register either as self-employed or with Hacienda while issuing invoices can result in heavy fines and penalties.

Requirements to Become Self-Employed in Spain

To legally work as a self-employed individual, you must meet the following conditions:

Age: Be of legal age or a legally emancipated minor.
Tax Registration: Register with Hacienda using Modelo 036 or 037.
Social Security Enrollment: Sign up for the Régimen Especial de Trabajadores Autónomos (RETA).
Economic Activity: Perform a regular, profit-oriented activity and issue invoices.
Independence: Operate without being under the direct supervision of another party.

Steps to Become Self-Employed in Spain

Register with Hacienda: File the Modelo 036 or 037 form to declare your economic activity and choose the appropriate tax category.
Enroll in RETA: Register with the Social Security system to begin contributing your monthly quota.
Obtain a Business License (optional): If you operate a physical location, you may need a local license from the municipal office.
Notify of Workplace Opening (optional): If you plan to hire employees, you must register them with the appropriate labor authorities.

Monthly Contributions for Self-Employed Workers

As of 2023, monthly Social Security contributions for self-employed workers depend on your real income:

Rates range from €230.15 to €542.13 per month.
New self-employed individuals can benefit from a reduced flat rate of approximately €87 during the first year, with potential extensions for those earning below the minimum wage.