Anyone wishing to set up as a self-employed person in Spain will soon find themselves faced with a system that bears little resemblance to the Belgian system. The Spanish equivalent of our self-employed person, the self-employed, is subject to its own social security and tax regime, with obligations that have undergone far-reaching reforms in recent years. Anyone who fails to prepare thoroughly for this risks unpleasant surprises, both financially and administratively.
Read more about emigrating to Spain.
What exactly is an ‘autónomo’?
The term self-employed person refers to a natural person who carries out an economic, professional or commercial activity in their own name and at their own risk, without being bound by an employment contract. These self-employed persons fall under the Special Scheme for Self-Employed Workers (RETA), the special scheme within the Spanish social security system. It is important to remember that RETA status does not automatically preclude simultaneous affiliation to the general scheme (RGSS) as an employee, provided that the two activities can be distinguished from one another.
Registration: with RETA and the tax authorities
Starting a business as a self-employed person requires two separate, compulsory electronic registrations. Firstly, the alta to the Tesorería General de la Seguridad Social, where, in addition to the usual identification details, the economic activity, the place of business and, since the 2023 reform, an estimate of the expected net income must be provided. Secondly, the declaration to the Agencia Tributaria (using forms 036 or 037), which covers registration for the IAE (business tax), VAT and personal income tax. Both steps must be completed prior to, or at the latest at the same time as, the start of the business activity.
The new contribution scheme: contributions based on actual net income
Since the entry into force of Royal Decree-Law 13/2022 of 26 July, the social security contributions system has undergone fundamental changes. Self-employed workers no longer pay a fixed basic contribution, but a contribution based on their actual estimated net annual income, categorised into fifteen income brackets (sections). For 2026, the monthly contribution ranges from approximately 200 EUR for those earning less than 670 EUR net per month, to around 590 EUR for those earning more than 6,000 EUR net per month. As the contribution is estimated at the start of the activity, the Social Security scheme carries out a retrospective adjustment – based on the actual income declared for personal income tax (IRPF) purposes –: those who have overpaid will receive a refund; those who have underpaid will be issued with an additional bill. Furthermore, anyone starting out as a self-employed person for the first time can make use of the flat rate, a reduced flat-rate contribution of 80 EUR per month, regardless of the income bracket to which the person belongs; this may be extended for a second year, subject to certain conditions.
Tax obligations: personal income tax and VAT
In addition to social security contributions, self-employed workers pay two main types of tax. For personal income tax (IRPF), they can choose between the simplified direct assessment, the standard direct assessment or, for a limited list of activities, the objective estimate (the so-called ‘module system’). This choice determines how taxable profit is calculated and has a direct impact on the quarterly advance payments (Form 130 or 131) and the annual tax return (Form 100). As a general rule, the standard VAT (IVA) regime applies, with quarterly returns (Form 303) and an annual summary return (Form 390), unless a special, often simplified, regime applies. Anyone practising a regulated profession must, in addition, generally register with the relevant professional body (professional body).
Here you will find further information about Spanish personal income tax.
Local taxes and other obligations
In addition to national taxes, local levies may also apply, such as the IAE (Impuesto sobre Actividades Económicas), the property tax (IBI) or, in the case of building works, the ICIO. However, most self-employed people starting out are exempt from the IAE for the first two years and, even thereafter, as long as their turnover remains below the statutory threshold.
When things go wrong financially: the Ley de Segunda Oportunidad
Anyone who, as a self-employed person, finds themselves in financial difficulties and can no longer cope with their debts is not necessarily defenceless. The Spanish ‘Second Chance’ Act (Second Chance Act) provides a legal framework for reaching an agreement with creditors on a payment plan or partial repayment, and, if no agreement can be reached, provides for a procedure of discharge from unsecured liabilities, whereby any outstanding debts may be definitively written off, subject to certain conditions.
What does this mean for you?
The ‘autónomo’ status is not simply a copy of the Belgian self-employed status, and anyone who relies on this when moving to Spain often expects to be better off than reality allows. Choosing the right tax regime, accurately estimating social security contributions and registering correctly and in good time are all decisions with long-term financial consequences.
Are you considering taking the step towards self-employment in Spain? If so, make sure you act in good time contact Note: we would be happy to discuss this with you what approach to take in terms of tax and social security law that best suits your situation.
