How do I become autónomo and what are the costs?

The specifics about becoming autónomo

If you want to work legally in Spain, you have two options.  The first is to have a work contract provided by your employer which means both you and your employer contribute with social security payments.  The second is you become autónomo and you have to cover social security payments yourself.

Benefits of social security contributions

There are two main benefits of contributing with social security payments.  The first being that if you pay into the system, you have full use of the Spanish national health service.  Secondly, you will be contributing towards a Spanish pension for when you retire.

Cost of becoming autónomo 

The minimum standard monthly fee which you have to pay to the social security is around 290 euros per month (depending on various factors).  Fortunately, due to a government initiative, you will pay around 60 euros per month (depending on age/profession etc) for the first year.  This fee then goes up gradually over the following year until after two years you pay the full amount.  Another benefit/initiative currently in place is that if you are empadronado (on the padrón) in a village with less than 5000 inhabitants (such as Jalón, Alcalalí etc), the lower monthly rate is applicable for a full two years to give you some breathing space. Get in touch for more information regarding this initiative.

Are there any other costs? 

It is highly recommended that your hire a fiscal advisory team and an accountant to do your books, present your quarterly tax returns and give instant advice on any fiscal issues which arise from your employment.  At LingoMar we can provide a full fiscal and accountancy package for 50 euros per month (+ deductable IVA).  What's more it is all provided in English.

It is also necessary to present an annual tax return (between April and June of the following year) if you are self employed.  We can do this for a one-off fee of 50 euros (+ deductable IVA).

Of course, it will also be necessary to pay income tax (IRPF) and IVA based on your earnings.  The rates are dependant on your profesional activity.

Is there anything else I need to know?

If your business does not go as planned or if you wish to take a break, you can sign off from being autónomo whenever you like.  There is no obligation to continue.  It is also important to note that as a self employed worker, your income has to be from more than one employer (with the exception of some professions).  This means that a sole employer cannot expect you to become autónomo so they don't have to pay any taxes for you.  This is considered fiscal fraud.  The employer would have to provide you with a contract.

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If you have any questions or doubts, don't hesitate to get in touch with a native English speaker via our website or give us a call on 693 274 037. Many Thanks!