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You are here: Home Moving to Getting Started How to go freelance in Spain

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10/11/2009How to go freelance in Spain

How to go freelance in Spain Expatica’s guide on how one can register to be a freelancer in Spain.

Many jobseekers are increasingly choosing to be a freelancer in times of recessions when jobs are scarce. While it is perhaps the best and direct way to offer your skills, there are financial decisions to consider before you go freelance.

In Spain, a freelancer can choose to be either autónomo (self-employed) or set his/her own business for taxation purposes. There is no differentiation for nationals and non-nationals who want to go freelance.

Being self-employed

When you choose to go self-employed, you are the company and thus your assets are the liability. If you declared bankrupt, you will lose all your assets.

As a self-employed, you pay your taxes through IRPF (personal tax).

The procedure of going freelance is fuss-free as you can be registered as self-employed within one day. For this mandatory procedure, you will need to bring your DNI, document nacional de identidad (personal identification number or passport) and IRPF – Impuesto sobre la Renta de las Personas Físicas (personal tax certificate).


The three steps of registering are:
1.    Register for the IAE - Impuesto sobre actividades económicas (tax for economic activities) at your local city council. Every community would have their own registry. If you are based in Madrid, click here.
2.    Declare your quarterly IVA, impuesto sobre el valor añadido (VAT) by filling out a form from the Agencia Tributaria. The form varies depending on your NIF, so it is advisable to verify before completing the form.
3.    Register at the RETA – Régimen Especial de Trabajadores Autónomos (a special regime for self-employed) at the Seguridad Social (social security system).

Upon registering, you are assigned a NIF – número de indentificación fiscal (business identification number) that differs based on your state identification status. The NIF is the equivalent to the SSN or VAT number in other countries and you will need it to clear your taxes with the chamber of commerce.

Nationals and non-nationals will get the following NIFs:
DNI – for Spanish residents
NIF L – for Spanish residing in a foreign country
NIF M – for foreigners without NIE – número de identficación de extranjero (identification number for foreigners)
NIF X – for foreigners with NIE prior to 15 July 2008
NIF Y – for foreigners with NIE after 16 July 2008

Setting up your own company

On the other hand, if you start a business, you create a limited company (sociedad limitada) and the liability lies on the company. In case your company fails, you won’t lose your home.

If you start a business, you have to pay taxes twice -- a tax on corporate net profits and your personal income tax.

Setting up your own company is a process that could take up to several weeks. You may also need to fork out some investment to create a business entity. Unless you are applying for grants or funding, you are not required to present a business plan or justify innovation or fair competition.


You will need to apply a NIF – número de indentificación fiscal (business identification number) for the company. Until 2008 this number was known as the CIF – código de identificación fiscal, thus it is not rare that most companies still operate under such.

The procedure is carried out at the VUE – Ventanilla Única Empresarial (single point registry of companies). The VUE offers a comprehensive all-in-one service in their office. They offer guidance on the paperwork necessary to complete the procedure.

Entreprenuers are welcome to approach their local offices and discuss their particular requirements. For local offices,  go to http://www.ventanillaempresarial.org/oficinas.htm

You can also choose to approach the different offices (Hacienda, registro mercantil, seguridad social) to take care of the administrative procedures for starting a business.

The procedure cannot be completed online as there are paperwork and contracts that need to be signed before submission. You also have to assume that the only language spoken at those offices is Spanish, though in some cases you could be lucky and be greeted in English or other languages.

For an online overview of what to expect on the day you can go to http://www.060.es/060_empresas/simulador/index-ides-idweb.html

The duration of the procedure will depend on the type of company and your involvement.

In the long run, do note that taking care of the administration of a company takes up more time.


Filling out tax forms

Tax documentation for the previous calendar year has to be completed by companies and individuals in May and June. As a company, you will need to declare the business activity, income and balance sheets at your quarterly tax registration.

However, as documents vary according to your situation and tax payments varies each year, it is encouraged that you check with your local office before the year-end on what would be relevant to you.

The local office may waive off requirements such as the quarterly income report, the balance sheets of expenditure and income, receipts and investments, depending on your business activity and income for the term.

10 November 2009

Daura Carballo / Expatica


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