SELF EMPLOYED

SELF EMPLOYED

Spain is one of the favourite spots for many entrepreneurs from the EU or from aboard to develop their own business, so becoming self-employed or “autonomo” is a very good and cheaper alternative than a company specially if you have a small business or you are giving a service.

But what does “Autonomo” means?

Self-employed also known as “Autonomo” in Spain, is the legal status for a person that is developing commerce or professional activities without becoming a company.

What do I need to become an “Autonomo”?

You may reach us to do your “autonomo” first initiation, all the process is done online, so first we assist you to get your digital ID ( also known as digital certificate), we install it and then we are able to access into the public system to do your “autonomo” first initiation at the online tax authorities (“Hacienda”) and social security. 

But is the “autonomo” taxation too complicated? 

Not really, as an “autonomo” you need to do trimestral rent statements and an annual rent statement, the amount of taxation will depend on your activity and the amount of your gaining and expenses. 

The trimestral statements generally are an advance of what you need to pay at the end of the tax year, so usually by the final annual rent statement, you won’t need to pay anything, or you may even get money back.

The amount of rent statement, varies according to several conditions, but to have a general idea we may tell you that this is the progressive rent statement amount:

• From 0 to 12.450€: 19%
• From 12.450€ to 20.200€: 24%.
• From 20.200€ to 35.200€: 30%
• From 35.200€ to 60.000€: 37%
• From 60.000€ to 300.000€: 45%
• From over 300.000€: 47%

We must mention that all self employed must also pay V.A.T. tax (also known as IVA), which is generally 21%, (it could be less for certain services or products such as food), of course the V.A.T. tax you paid as expenses balances the V.A.T of your sales, so sometimes you don’t need to pay V.A.T. at all! 

What else do I need to pay?

As a self-employed worker, you need to pay your own social security, the amount is not fix but it depends on your incomes. You will have a reduced autonomo social security for the firsts years, beginning with an approximate of 60 euros payment, and then it begins increasing proportionally, for example to 120 by the second year, till you reach the total payment which is around 300 euros. In return you will have access to public health and your retirement payment. 

 You want to initiate or bring your “autonomo” to us? Trust your English-speaking law firm and account office (gestoria), we may take care of all your tax declarations.