More and more people prefer to work for themselves, without putting up with bosses who pay them little money and ask them for double or triple the amount of work they do as an employee. But Being self-employed in Spain is not easy. In fact, a large part of the country is maintained precisely by the self-employed. And these don't have it easy at all.
Although registering as a self-employed person is easy, the truth is that you will have to carry out a series of procedures, payments, taxes, etc. that You have to keep in mind because they can wipe out the little money you earn, especially at the beginning.
Be self-employed in Spain
Have you ever considered being self-employed in Spain? Do you think it's great to be your own boss, to work when you want, to do what you want (in terms of taking on one client or another)...? So, coming soon, it's very good. But The truth is that there are not only good things, but also bad things.
Being self-employed implies that you will work on your own, finding your clients, issuing invoices and contributing to Social Security yourself. This means that you are going to be responsible for your business, and the one who will make it take off, stagnate, or not do well. At the same time you will deal directly with your clients, to whom you will give a product or service.. And monthly, quarterly and annually you will have to face a series of fees and taxes to be able to practice your profession.
Requirements to be self-employed in Spain
If you have made the decision to become self-employed, it is necessary to know if you meet the requirements needed to register for Social Security. We explain them to you.
Be of age. In the case of Spain, it would be over 18 years of age. However, you can also be an emancipated minor as long as it falls under article 323 of the Civil Code.
Be registered with the Treasury. This procedure must be done before registering as self-employed and for this You must fill out form 036 or 037.
Have an activity to carry out. And charge for it through invoices. This must be the main or secondary source of your income.
Steps to register to be self-employed in Spain
The requirements to be self-employed in Spain are not difficult to meet. In fact, most people comply with them and could sign up. But do you know the steps you need to take to do it?
First of all, you should know that normally, in one morning, and online, you can do all the necessary procedures. If you prefer in person, the truth is that it could take longer. First, when they give you the appointment; and second, that they take care of you.
For this reason, we recommend the online method as long as you have a digital certificate, Cl@ve or electronic DNI.
And what is done first?
High in the Treasury
The first step to be self-employed in Spain is to go to the Tax Agency (better known as the Treasury). You will have to present a model, either 036 which is the general regime; or 037, which is the simplified regime.
When filling it out you will have no problem because it will be your personal data, date of registration of the activity... But there is one point where you may have more difficulties: in choose the activity heading of the Tax on Economic Activities.
Several tips:
- Try to choose a heading that relates exactly to the activity you are going to do.
- If there are several headings that fit, for example because you perform several services, sign up for all of them. They are not going to charge you more for being in several. Of course, when billing you may have to distinguish one from the other and make different numbers.
- Yes, there are headings in which that person is exempt from VAT. But you have to meet the specific requirements for it.
Once you register, you will obtain a document that will prove your registration. AND then you can continue with the next procedure.
Registration in the RETA
The RETA is the Special Regime for Self-Employed Workers and registration must be done with Social Security, since they are responsible. Like the previous one, it can also be done online.
Again you will have a document, the TA.0521 that you must fill out. Of course, we recommend that, if you are going to register, you always do so on the first of the month. We explain: if you register on the 15th, 20th or even the 31st of the month, Social Security will charge you that month and the next. Even though you weren't discharged. Which implies that you will pay for a month for not having done anything.
Regarding the fee, if you have never registered as self-employed before, or have not been registered for several years, there is a special rate of 80 euros per month for twelve months (one year). Afterwards you would have the normal quota in the self-employeds (the smallest being around 230 euros per month and the maximum being 1267 euros per month).
Other procedures
Optionally, you have two more procedures that you can carry out: on the one hand, the application for an opening license, whenever you are going to open a physical establishment. And, on the other hand, the communication of opening the work center, also if you have a physical location.
The taxes you pay as a self-employed person in Spain
Finally, we also want to talk to you about the least good thing about being self-employed in Spain: paying not only the fee, but also the taxes that you will have to pay.
Specifically, although not all of them may apply to you, these would be:
- Model 303: quarterly payment of VAT. That is, the VAT that you put on your invoice then you have to give it to the Treasury.
- Model 390: annual VAT model. It is informative and does not require any payment.
- Model 111: Personal income tax withholdings made. In this case you will have to deposit that money.
- Model 190: annual declaration of form 111. Like 390, this is also informative.
- Model 130: personal income tax declaration that is paid to the Treasury. It is done quarterly and then subtracted in the income tax return.
As you can see, being self-employed in Spain has its pros and cons, in addition to having to comply with a series of monthly, quarterly and annual payments. What do you think of the self-employed in the country?