Becoming Autonomo in Spain: What It Means and How to Register

Opening a sole proprietorship in Spain — also known as registering as an autonomo — allows a foreign entrepreneur to do business in a country with a stable economy and enter the European market. The Spanish government does not prohibit third-country nationals from starting a small business, however, they must first obtain a residence permit.

Registration as an entrepreneur (autónomo) in Spain is simple, but the businessman is personally liable for the company’s debts, i.e. he is responsible for his own property.

Advantages of Becoming Self-Employed (Autónomo) in Spain

• Savings from the start. An Autonomo (the Spanish name for a sole proprietorship) allows you to reduce costs compared to opening a full-fledged company: there are no authorized capital requirements and fewer documents.
• Government support. Tax obligations for sole proprietorships are simplified, with benefits and subsidies. First-time entrepreneurs, especially, can pay reduced social security contributions for one year – only 80 euros per month.
• Quick registration. Registering as an autónomo is quite quick and involves a minimum of paperwork.
• The opportunity to obtain a residence permit. Starting a business helps with the relocation process and entitles you to apply for a temporary residence permit for yourself and your family.
• Access to innovative programs. Owners of start-up projects have the opportunity to obtain a residence permit for 3 years with the opportunity to extend it under simplified conditions.

Who can open a sole proprietorship in Spain?

The opening of a sole proprietorship (autónomo) in Spain is possible for almost anyone: citizens of the EU, the Schengen area and third countries. The only difference is that for non-Europeans the process is supported by a residence permit. On your own, it takes a little longer: you have to prove your financial stability, insurance and a clean criminal record, for example, if you plan to get a start-up visa.

If you are a citizen of the EU or the Schengen area, a foreigner identification number (NIE) is sufficient to open a sole proprietorship. You do not need a visa to enter the country, but if you are staying for more than three months, you must apply to the Central Register of Foreigners to confirm that you are really opening a business and intend to work here.

Requirements for the entrepreneur

• Work permit. For third-country nationals, this can be a Spanish start-up visa, which gives the right to carry out entrepreneurial activities. The most important conditions are the presentation of an innovative project, financial security and health insurance.
• Foreigner Identification Number (NIE). Without it, no procedures can be followed in Spain. You can get an NIE either at home, by applying at the Spanish Consulate, or in Spain itself.
• Spanish bank account. You will need it for all kinds of payments: taxes, social security contributions, employee salaries (if you hire a team).

How to Register as an Autonomo in Spain: Step-by-Step Guide

If you’re not sure how to register as autonomo in Spain, the process is straightforward but requires several official steps. Registering a sole proprietorship in Spain is different from opening a regular business.

The first step for many foreign entrepreneurs is to obtain a visa. If you are not an EU citizen, you must apply for a business visa or residence permit that allows you to run a business:

1. Go to a business service center (PAE). This is a kind of “one-stop center” where they help you fill out all the documents.
2. Submit the required documents. This includes passport, NIE, bank details and (if required) a work permit.
3. Fill out an electronic DUE document. It contains information about you, the business itself – legal form (autónomo), type of activity (IAE or CNAE code), registration address and information about employees if there will be some.
4. Notarize the registration. Once it is done, you become a full-fledged entrepreneur in Spain.

Taxes and social security. After registering with the PAE, you must register with the Hacienda. Here you must declare the type of economic activity and submit an application form 036 or 037. The next step is to register with the social security system. This will allow you to receive public services, pensions and benefits.

If this is the first time you are starting a sole proprietorship, there is a nice bonus: during the first year, social security contributions are reduced to 80 euros per month, which is extremely beneficial during the start-up phase.

Opening a bank account. In Spain, an account is an integral part of life and business. It will be used to settle accounts with customers, to pay taxes and for social security. There is usually no delay in opening an account – if you have already received your NIE and have all the documents, you can do it almost any time. Moreover, if you are a resident, many banks do not charge any fees for maintaining an account.

Whether to get a license. Spain has made it as easy as possible to start a small business, and in many areas, licenses were abolished in 2011. However, if you are involved in construction, tourism or industrial production, you still need a license. They are issued by the local government (Ayuntamiento), and the process can vary from municipality to municipality.

What are the costs of registering a sole proprietorship? According to the official rates, the total expenses include:

• EUR 18.9 for registration in the Central Trade Register;
• EUR 9.74 for obtaining a NIE;
• EUR 80 for an entrepreneur visa (for third-country nationals).

Opening a bank account and registering for social security are usually free of charge (with a few exceptions where the bank charges a service fee).

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How Much Is Autonomo in Spain and Is It Worth It?

The cost of being an autonomo in Spain depends on your income, but new entrepreneurs benefit from flat-rate social security contributions — only 80 EUR per month for the first year. Additional costs include NIE registration (10 EUR), and, if you’re a non-EU citizen, a visa fee of around 80 EUR.

Is it worth being self-employed in Spain? For many freelancers, consultants, and digital nomads, yes — especially given the relatively low startup barriers and access to European clients.

Autonomo Taxes in Spain: What You Need to Know

Autonomo tax in Spain includes income tax (IRPF), VAT (IVA), and potentially economic activity tax (IAE), depending on income level. Every self-employed person must register with the tax office and make monthly and quarterly contributions. The basic taxes in Spain for sole proprietorships:

Individual income tax fee (IRPF) or income tax. The amount of IRPF depends on the net income of an individual entrepreneur. It is a progressive tax, i.e. the rate increases as the amount of income increases. If the annual income is up to EUR 12450, the IRPF is 19%, EUR 12450-20199 – 24%, EUR 20200-35199 – 30%, EUR 35200-59999 – 37%, EUR 60000-299999 – 45%, more than EUR 300,000 – 47%. The amount to be paid is calculated on the basis of the annual declaration submitted by the entrepreneur to the tax authority.

Self-employed persons who are just starting their entrepreneurial activity have the opportunity to pay income tax at a reduced rate in the first years – 15% for the first EUR 300,000 and 20% – if the income is higher.

Value Added Tax (IVA). VAT is charged to sole traders engaged in the sale of goods and services. The tax rate is 21%. The rate is reduced to 5-10% for some types of food, agricultural and livestock products.

Tax on economic activity (IAE). Intended for entrepreneurs with an annual net profit of more than EUR 1 million. The tax rate depends on the type of activity and the province. Individual entrepreneurs are exempt from paying IAE for the first 2 years after business registration.

Tax filing and reporting

A self-employed person is obliged to pay income tax annually, VAT quarterly and social security contributions monthly, and therefore to submit declarations to the tax authorities and keep financial statements. When calculating the taxable income, it is possible to apply regional rates, regardless of the place of registration of the entrepreneur, as well as fixed deductions depending on the age and marital status of the payer.

The types of declarations that must be filed by an entrepreneur working in Spain:

• IRPF return. Form 100 is filed once a year between April and June, in person or online. This document is not to be completed by hand, but is to be generated through the electronic portal. The IRPF declaration on Form 130 or 131 is filed quarterly by the 20th day of the month following the reporting month.
• VAT returns. Form 303 is filed quarterly and form 390 is filed annually by January 30. The document must be completed and submitted electronically. If the sum of transactions with customers and suppliers for the year exceeds 3005 EUR, including VAT, then a declaration on form 347 is filed in February.
• IAE declaration. Form 848 is filed once a year from January 1 to February 14 if the annual profit exceeds EUR 1 million.
• Declaration of the volume of purchases/sales of products and services in the EU. Form 349 must be filed monthly from the 1st to the 20th or quarterly in the same period, except for the last quarter, when the report can be sent until January 30.

Amounts and calculation of social contributions

Social fund payments are made automatically. On the last working day of the month, a certain amount is deducted from the sole proprietor’s bank account. The amount of contributions depends on the average monthly net profit. For taxation, you can choose the minimum or maximum base. The latter option is usually preferred by entrepreneurs who are planning to retire.

The calculation of the contribution amount is as follows:

1. Calculate net income for the year.
2. Subtract 7% from the resulting amount.
3. Determine the net income for the month.
4. Calculate the contribution amount, e.g. for income over EUR 6,000 per month – it is EUR 1732-4720.

An entrepreneur can modify the contribution base through the electronic portal of the Social Security Service. A maximum of 6 changes per year are possible.

For new self-employed registered between 2023 and 2025, a flat monthly contribution rate of EUR 80 applies for 12 months. The reduced payment can be extended for another year if the annual net income is expected to be lower than the annual salary corresponding to that period.

What Is Autonomo in Spain and How to Run It

The Spanish government supports the registration of entrepreneurs. New businesses receive government support in the form of grants, social and tax benefits. The country pays special attention to attracting innovative companies. Startup entrepreneurs pay corporate tax at a reduced rate – only 15% – and can count on a special payment deferral.

Accounting and financial reporting. Sole proprietors are required to keep annual financial statements in accordance with the Spanish General Accounting Plan and file them with the Trade Registry. The document presents a balance sheet, information on losses and income, changes in equity, and movements in funds.

Additionally, one must keep:

• a book of expenses and investments;
• a register of financial transactions;
• a book of inventory.

Expenses and income of a sole proprietor are supported by invoices or receipts.

All the transactions must be reported to the General Treasury of Social Security via the electronic portal.

Recruitment and contract work. A sole proprietor may hire employees on the basis of a labor agreement or a full-time or part-time employment contract. The entrepreneur is obliged to register the employees in the social insurance system and to comply with the labor legislation of the country, specifically, to ensure timely payment of wages and to keep the labor books of the employees.

Spain – the choice of entrepreneurs and beyond. Foreigners who are registered as sole proprietors in Spain can obtain a residence permit and apply for citizenship in the future. The government has developed attractive immigration programs for non-EU entrepreneurs.

Visa program for entrepreneurs and start-ups. If an entrepreneur is outside Spain, he or she can apply for a one-year visa, which allows him/her to reside in the country and carry out business activities during this period. However, it is much more convenient to obtain Spanish residency immediately.

Business residence permit in Spain. Registering a business in Spain is the basis for temporary residence in the country. Entrepreneurs from non-EU countries who propose an innovative business idea are granted a Spanish residence permit for a period of 3 years with the opportunity for renewal. As part of the program, there is the need to:

• Have no criminal record for the last 5 years;
• Provide health insurance;
• Provide a bank statement confirming financial security;
• Provide a document of experience and qualifications to carry out business activities.

Also available for sole proprietorships is the Spanish Nomad Visa – a new type of permit designed for self-employed individuals who work remotely using telecommunications technologies. The document is issued for one year, with the opportunity to apply for a 3-year residence permit.

Prospects for further citizenship. One of the most important advantages of registering a sole proprietorship in Spain is the opportunity for future Spanish citizenship. After 10 years of continuous residence in the country with a residence permit, you can apply for citizenship. In order to obtain a Spanish passport, one must have no criminal record, as well as a sufficient level of integration into Spanish society, that is, pass a language test, know the basics of the constitution and the culture of the country.

FAQ: Autonomo and Self-Employment in Spain

What is autonomo in Spain?

It’s a legal status for self-employed individuals who want to work independently. Autonomos must register for taxes and social security.

How to become autonomo in Spain?

First, obtain an NIE, a Spanish bank account, and submit your application at a PAE center. This article explains all the steps.

How much is autonomo in Spain?

Social contributions start from €80/month for new autonomos, plus income tax and possibly VAT depending on your earnings.

Is it worth being self-employed in Spain?

Yes — especially for digital professionals, as Spain offers low startup costs, special visa programs, and access to EU markets.

Can I apply for a self-employed visa in Spain?

Yes, Spain offers both a traditional self-employment visa and a Digital Nomad Visa. Requirements include proof of income, insurance, and a clean record.

Become a Spanish resident and open up new opportunities:

• Living in a developed country;
• Residence permits for all family members;
• Prospects of permanent residence and citizenship;
• Travelling in Europe visa-free.

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