New Self- Employed in Spain.
Have you ever enquired about starting a business in Spain as self-employed and come away disheartened and shocked at how much it costs to be legal?
In Spain there are two main ways to structure a business: the first one is to work as self employed (Autónomo), and the second one is to incorporate a Spanish Limited Company (Sociedad Limitada), which is the more expensive option.
First of all, any foreigner interested in starting a business in Spain, either way, needs a foreign identification number (NIE).
Self-Employed (Autónomo)
To be an Autónomo means to begin a business as a self employed person. There are two steps to become an Autónomo; first of all you have to notify to the Spanish Tax Administration (Agencia Tributaria) that you are going to start an economic activity, and then you should register to the regime of self employed persons in the Social Security (Seguridad Social), with a notification validated by the Tax Administration.
Once you are registered in the Social Security, you will have to pay a monthly fee, the usual monthly fee is between 250€ to280€ depending on your business activity, which has always been seen to be very expensive for those just setting up a business. However, reductions for new Autónomos have been approved by the government, including the following features:
For all new Autónomos the following reductions will apply:
• An 80% Social Security fee reduction during the first 6 months;
• A 50% Social Security fee reduction during the next 6 months after the previous period of time;
• A 30% Social Security fee reduction during the next 18 months after the previous period of time.
An Autónomo must comply with several tax obligations, mainly to present their quarterly declarations of taxes relating to VAT and Retentions made by other professionals.
The reductions are only for people who in the last five years haven’t worked as an Autónomo in Spain and secondly who will not hire employees.
In summary, someone who has not previously been registered as self employed in Spain can do so now with substantial reductions on their Social Security fees for 18 months to allow them to get established. If they do not succeed, they can always cancel the business after that period.
Please contact Amanda on [email protected] if we can be of any help and you would like an appointment.
Have you ever enquired about starting a business in Spain as self-employed and come away disheartened and shocked at how much it costs to be legal?
In Spain there are two main ways to structure a business: the first one is to work as self employed (Autónomo), and the second one is to incorporate a Spanish Limited Company (Sociedad Limitada), which is the more expensive option.
First of all, any foreigner interested in starting a business in Spain, either way, needs a foreign identification number (NIE).
Self-Employed (Autónomo)
To be an Autónomo means to begin a business as a self employed person. There are two steps to become an Autónomo; first of all you have to notify to the Spanish Tax Administration (Agencia Tributaria) that you are going to start an economic activity, and then you should register to the regime of self employed persons in the Social Security (Seguridad Social), with a notification validated by the Tax Administration.
Once you are registered in the Social Security, you will have to pay a monthly fee, the usual monthly fee is between 250€ to280€ depending on your business activity, which has always been seen to be very expensive for those just setting up a business. However, reductions for new Autónomos have been approved by the government, including the following features:
For all new Autónomos the following reductions will apply:
• An 80% Social Security fee reduction during the first 6 months;
• A 50% Social Security fee reduction during the next 6 months after the previous period of time;
• A 30% Social Security fee reduction during the next 18 months after the previous period of time.
An Autónomo must comply with several tax obligations, mainly to present their quarterly declarations of taxes relating to VAT and Retentions made by other professionals.
The reductions are only for people who in the last five years haven’t worked as an Autónomo in Spain and secondly who will not hire employees.
In summary, someone who has not previously been registered as self employed in Spain can do so now with substantial reductions on their Social Security fees for 18 months to allow them to get established. If they do not succeed, they can always cancel the business after that period.
Please contact Amanda on [email protected] if we can be of any help and you would like an appointment.
