How to Become Self-Employed in Spain as a Non-EU Foreigner: Requirements and Procedure

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How to Become Self-Employed in Spain as a Non-EU Foreigner: Requirements and Procedure

Requirements to Become Self-Employed in Spain

Residence and Work Permit: If you are a citizen of the European Union (EU) or the European Economic Area (EEA), you do not need a work permit to be self-employed in Spain. However, if you are from outside the EU/EEA, you will need a visa that allows you to reside and work in the country. The most common types are the self-employment work visa.

Having an NIE (Foreigner Identification Number): The NIE is mandatory for any foreigner who resides or carries out economic activities in Spain. It is an identification number you need to interact with tax authorities and other organizations. To obtain the NIE, you must go to the National Police or a Foreigner’s Office in your area.

Registering with the Tax Agency: As a self-employed person, you must register with the Tax Agency (AEAT). The process involves submitting form 036 or 037 (the latter being a simplified version of the former). Here, you will need to indicate the activity you will carry out, the tax regime, and the taxable base.

Social Security Contributions: All self-employed individuals must register with the Special Regime for Self-Employed Workers (RETA) under Social Security. This process is done through the General Treasury of the Social Security (TGSS). When registering, you will choose your contribution base, which will determine the amount you have to pay monthly. Starting in 2023, a real income-based contribution system has been implemented, meaning you will pay according to the income you declare, rather than a fixed fee.

Activity License: Depending on the activity you will carry out, you may need an activity license or municipal authorization. This is especially relevant if you are opening a commercial premises. You must check with your local town hall to see if this procedure is necessary.

Procedure to Become Self-Employed in Spain

Obtain the NIE: The first thing you need to do is obtain the NIE. To do this, you must go to the National Police or the Spanish Consulate in your country. This number is essential for carrying out any tax and social security procedures in Spain.

Register with the Tax Agency: Once you have the NIE, you will need to register with the Tax Agency by submitting form 036 or 037, as applicable. This step is essential for your activity to be legal and for you to issue invoices. Here, you will also choose your tax regime (direct estimation, modules, etc.) and the activity you will perform.

Register with Social Security: The next step is to register with the Special Regime for Self-Employed Workers (RETA). This process is done at the General Treasury of Social Security (TGSS).

Issue Invoices and Tax Declarations: Once registered as self-employed, you will need to issue invoices for the services or products you sell. It is important that these invoices include VAT (if applicable) and IRPF withholding (if applicable). Additionally, you will need to submit periodic VAT and IRPF self-assessments, which can be done quarterly or annually through the Tax Agency.

Comply with Accounting and Tax Obligations: Self-employed individuals have tax obligations, such as submitting the quarterly VAT declaration (form 303), the quarterly IRPF declaration (form 130), and the annual income tax return (form 100). Depending on your activity, you may also need to submit other forms.

Final Tips Tax Advisory: It is advisable to have the support of a tax advisor or management service to help you comply with all your tax and accounting obligations, especially if you are unfamiliar with Spanish regulations.

Comply with Local Regulations: Make sure you are aware of all local regulations that may affect your activity, such as activity licenses, safety regulations, or health control requirements, if necessary.

Conclusion Becoming self-employed in Spain is an accessible option for foreigners, as long as the appropriate requirements and procedures are followed. From obtaining an NIE to registering with the Tax Agency and Social Security, each step is important to ensure your self-employment activity is fully legal. With proper planning, you will be able to enjoy the benefits of working independently in one of the most dynamic countries in Europe.