REGISTER AS AN AUTÓNOMO
Register as an autonomo
REGISTER AS AN AUTONOMO BEFORE THE TAX AGENCY & SOCIAL SECURITY
· TAX ADVISE & COMPLIANCE
· LABOUR LAW
· INTELLECTUAL PROPERTY
What is the status and how to register as an Autonomo?
Self-employed status is the Spanish equivalent of a self-employed or freelance worker and also includes persons (without legal personality) exercising small business. Anyone carrying out any of these activities has to legalise these activities and has to register as an autonomo. The payment of taxes and the levying of VAT are included in this.
The answer to the question “Do I have to register as self-employed?” is usually “Yes” if you are earning money in Spain and are not employed or conduct business through a company.
Steps to register as an Autonomo in Spain:
1. Register with the Agenzia delle Entrate “AEAT” by filling in the “Form 036” under the item corresponding to the tax on economic activity “IAE” to be developed.
2. You must fill in another form, “Form 030”, in order to be registered as a resident taxpayer.
3. Enrolment in the Spanish social security system
What are the requirements to register as an autonomo?
There are no requirements for showing business plans, capital or demonstrating professional qualifications. In order to be a member of the NETWORK autonomous social security system you have to already be registered in the social security system and this involves another fairly simple registration process. Similarly, you have to register the Tax Authority as a resident taxpayer, which means completing another form (Form 30).
For certain types of activities (e.g. anyone opening premises to the public) the municipality requires an opening license. This activity license is granted to the owner, so you must renew it every time there is a change in the activity on the premises.
When you register as an Autonomo you will be included in the ‘RETA’ which is the scheme governing the social security contribution of self-employed workers in Spain.
- Invoices issued as a result of its activity.
- Invoices received related to its activity
- Expenses related to its activity.
- Investments in goods related to the activity. Accounted for goods of more than € 300 not to be “consumed” in just one fiscal year.
- Invoice number
- Date of issuance
- Your name, NIE and address
- Holder of the invoice data
- Description of goods and services
- Taxable base
- Type IVA (VAT) depending on the service/product 4%, 10% or 21%.
- IVA amount
- IRPF retention to the holder of the invoice, if any
Submitted to the AEAT, presenting the “303 form” in April, July, October and January.
Each person that wants to register as an Autonomo must charge VAT on its own invoices (there are some exceptions – for example, Autonomous invoice only businesses abroad). In the quarterly returns, you’ll have to pay the VAT on the amount you have collected from your income within 20 days of the end of the month.
Autónomo must keep a register of:
- Invoices received
- Expenditure relating to its activity
Note that you won’t be able to claim anything without an appropriate invoice, which means an invoice with the above requirements.
This is not necessary if 70% or more of the income is subject to deductions, so you may choose not to file a quarterly tax return.
When you register as an autonomo and you want to invoice another Spanish Autónomo professional or another undertaking for its services, you must retain a percentage of the value of the invoice and pay iy to the Tax Agency as an advance on income tax on behalf of the Autónomo.