Self-Employed in Spain

Spain have several options, when it comes to doing business in spain, there are primarily two alternatives either start your company in Spain or register yourself as Self-employed.

Self-employed entrepreneur is recognized as a natural person that is going to do business in spain and have an economical activity WITH a contract in the country. 

WHO can be self-employed entrepreneur?

• Adults who can freely disposal of their property.
• Emancipated minors, with the limitations set out in section 323 of the Civil Code.
• Minors and disabled people, through their legal representatives.

Features of a Self-Employed:

• Regardless of whether the worker is enrolled in the Special Regime for Autonomous Workers (Régimen Especial de Trabajadores autónomos) or for its own account, it is presumed, until proven otherwise, that are independent licensees of an establishment open to the public as the owner, tenant or other similar concept.

• The self-employed is responsible for membership, unsubscribe or change to social security, and liability is unlimited on all its present and future assets, unlike companies which are generally limited.

Procedures to become Self-Employed in Spain:

Taxation:

• Obtain the NIE, in case don´t have it, and the tax identification number CIF or VAT number.

• Tax Statement  on the Economic Activity (IAE = Impuesto sobre Actividades Económicas).

Social Security registration:

• Have to register for the special regime of self-employed social security

WHAT are the Benefits:

• The auto-entrepreneur have significant benefits in comparison to a company, first it doesn´t pay corporate tax.  However, depending on the sales volume, its important to understand that theres a breakeven point where having a company will be more benefitial in terms of tax playment.  Do not hesitate to contact us for more information.

Monthly payroll taxes for a worker Autónomo are € 254.21.  If he has 30 months of age, he will pay only 70% of this amount. Of course, the entrepreneur also must also pay tax on income (declaración of profitability).

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