How to Become Autónomo in Spain

An autónomo (self-employed person) is anyone who works for themselves in Spain. You control your hours, clients, and business, but you're personally liable for all obligations.

You need to register as autónomo if:

• You invoice clients (freelance work)
• You have your own business (shop, service, consulting)
• You earn regular income without an employment contract

Registration is free, but monthly costs are not. Autónomos pay social security contributions (RETA) monthly: €200–€670 depending on income.

1. Get a Spanish tax ID (NIF)

• If you're a resident: Apply at local tax office (Hacienda) or police (Extranjería)
• If you're not yet in Spain: Apply online at Agencia Tributaria or through your consulate
• Cost: Free. Processing: 1–5 business days online

2. Choose your activity code (CNAE)

Select the code that describes your business (e.g., 7311 for consulting, 5811 for training). Check the official CNAE list.

3. Register with Seguridad Social (Social Security)

• Visit your local Social Security office (Tesorería General de Seguridad Social)
• Fill out form TA.0521 (autónomo registration)
• Show: NIF, passport, proof of address, activity code
• Cost: Free. First payment due ~30 days after registration

4. Register with Hacienda (tax authority)

• Fill out form 036 or 037 (VAT/income tax registration)
• Show: NIF, Social Security registration, activity code
• Declare if you'll charge VAT (most do if revenue more than €3,600/year)
• Cost: Free. Online at Agencia Tributaria

5. Open a Spanish business bank account

Shows separation between personal and business finances (helpful for tax audits). Bring: NIF, Social Security registration, proof of address.

Estimated total time: 2–4 weeks (can be done faster if you hire a gestor)

RETA is mandatory and you pay monthly to Seguridad Social:

• Year 1 reduced rate: €65–€230/month (50% discount)
• Year 2+: €200–€670/month (full rate, varies by income tier)

Why does it vary? RETA is tied to your declared income (RENDIMIENTOS NETOS). You choose a tier at registration, paying for that income range. You can adjust quarterly if your income changes.

Example: If you declare €2,000/month net income, you pay ~€300/month RETA. This covers healthcare, disability, unemployment (limited), and pension.

What RETA covers: Healthcare (you and family), disability insurance, unemployment (limited), state pension contributions.

1. Quarterly VAT (IVA)

• Mandatory if you invoice clients (even below €3,600/year, with rare exceptions)
• You collect 21% VAT from clients, remit to Hacienda quarterly
• You claim back VAT paid on business expenses (office supplies, software, etc.)
• Cost: Free to file (online via Hacienda portal), but processing can be complex

2. Annual income tax (declaración de la renta)

• File by June 30 (for prior calendar year)
• Calculate: (Invoiced revenue) − (expenses) − (RETA contributions) − (personal allowance) = Taxable income
• IRPF rate: 19–47% depending on profit tier
• Deductible expenses: Office supplies, software, professional fees, equipment, home office (50% allowed), vehicle costs (if business-related), internet/phone (50%), training courses

Example calculation:

You invoice €30,000 in Year 1. Expenses: €8,000. RETA paid: €3,000/year.

Taxable = €30,000 − €8,000 − €3,000 − €5,550 (allowance) = €13,450

IRPF at 19% = €2,556 owed (plus regional taxes)

Common deductible expenses:

• Office supplies: 100% (pens, paper, etc.)
• Software: 100% (SaaS subscriptions, tools)
• Professional fees: 100% (gestor, lawyer, accountant)
• Equipment: Depreciated over years (laptop €500/year, desk €100/year)
• Home office: 50% (only proportional to workspace)
• Vehicle: Fuel 100%, maintenance 100%, insurance 50%, if business-related
• Internet/phone: 50% (partial business use)
• Training courses: 100% (professional development)
• Travel: 100% (conferences, client meetings)

Keep receipts! Hacienda can audit up to 5 years back. No receipt = no deduction.

As income grows, forming a Sociedad Limitada (limited company / SL) can save taxes:

When to form an SL: Typically at €50k+ annual profit. Break-even factors in admin costs (gestor €500–€1,000/year extra for SL accounting).

SL benefits: Lower tax rate (25% company tax vs. up to 45% personal IRPF), liability protection (personal assets separate from company), growth flexibility, easier to raise capital.

SL downsides: More complex accounting, higher admin fees, must file more paperwork.

• Not registering: Working without registration risks fines (€1,000+) and disqualification from payments
• Underreporting income: Hacienda cross-checks bank transfers, invoices, client reports. Underdeclared income = penalties + interest
• Missing VAT filings: Quarterly VAT is mandatory. Late filings have penalties (€100–€300+)
• Not keeping receipts: Unsupported deductions are disallowed; audits go back 5 years
• Mixing personal and business money: Blurs liability boundaries and complicates audits
• Ignoring RETA payment: Social Security can seize bank accounts or suspend services
• Not adjusting RETA if income drops: You can reduce tiers quarterly; staying on high tier when earning less wastes money

• Agencia Tributaria (Hacienda): Official tax authority — forms, news, filing portal
• Seguridad Social: Social Security authority — registration, contribution updates
• Spain Expat Hub: Autónomo Cost Calculator to estimate monthly and annual expenses
• Gestor (tax adviser): Hire one to handle registration and annual filings (€200–€500/year). Worth it for first year + peace of mind.
• Contaplus or similar: Accounting software (€20–€50/month) to track expenses and generate reports

Week 1: Get NIF (online or in-person)

Week 2–3: Register with Social Security (RETA)

Week 3–4: Register with Hacienda (VAT/income tax)

Week 4: Open business bank account, set up accounting

First month: First RETA payment due (€65–€230)

Every 3 months: File quarterly VAT

Every year (by June 30): File annual income tax return