Freelancers explained: all you need to know

A freelancer in Spain is a self-employed individual. This article explains what it means to be a freelancer, the requirements to register, the different types of freelancers, and the main tax obligations. It also highlights that freelancers are personally liable for their business, meaning they are responsible with their own assets.

Key points

• A freelancer in Spain is a natural person who carries out an economic activity independently. They are required to issue invoices and contribute to Social Security to access benefits such as healthcare.
• To become a freelancer, it is necessary to register with the Special Regime for Self-Employed Workers (RETA), meet specific conditions, and obtain the appropriate licences depending on the type of activity.
• There are various types of freelancers, such as sole traders, company-associated freelancers, TRADE (economically dependent freelancers), and agricultural freelancers–each with its own set of responsibilities and legal distinctions. Freelancers may work alone or have employees under their charge.

Summary

1. Definition of a freelancer in Spain
2. Requirements to become a freelancer
3. Types of freelancers in Spain
4. Freelancer contribution fee (Cuota de Autónomos)
5. Bonuses for freelancers
6. Tax obligations
7. Advantages and disadvantages of being a freelancer
8. Final thoughts
9. Frequently asked questions

Definition of a freelancer in Spain

In Spain, a freelancer is a natural person who regularly carries out an economic activity on a self-employed basis and earns income from it. This definition includes a wide range of professionals–from small business owners to consultants and freelancers.

Freelancers are required to issue invoices for the services they provide and must keep an up-to-date record of both issued and received invoices.

In addition, freelancers are obligated to contribute to the Social Security system, which gives them access to services such as healthcare, sick leave benefits, and maternity leave. This contribution is one of many responsibilities that come with being self-employed in Spain, as it ensures eligibility for the full range of social benefits. The freelancer is fully responsible for paying their own Social Security contributions.

Requirements to become a freelancer

To be recognised as a freelancer in Spain, you must:

• Be registered with the Special Regime for Self-Employed Workers (RETA) and the Tax Agency (Agencia Tributaria). Registration with the Tax Agency may involve the Economic Activities Tax (IAE), depending on the type of professional activity.
• Start the process by registering with the General Treasury of the Social Security (TGSS) to obtain your Social Security affiliation number.
• Once you have your affiliation number, you must register in the Census of Entrepreneurs with the Tax Agency using form 036.

Freelancers must also meet the following requirements and conditions:

• Be at least 18 years old to register as self-employed.
• There is no minimum legal capital required to become a freelancer.
• Accept full personal liability for any business-related debts.
• Notify the Regional Labour Department about the opening of a workplace.
• Depending on the type of activity, freelancers must apply for the necessary licences, which may vary by location.

These requirements ensure that freelancers comply with all legal and tax regulations from the outset. It is crucial to make an informed decision about what type of freelancer you want to be and understand the applicable requirements to avoid legal or financial issues in the future.

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Types of freelancers in Spain

In Spain, the concept of a freelancer (autónomo) covers various categories, each with its own specific features and obligations, though all share some core responsibilities. The main categories include:

• Sole trader (persona física)
• Corporate freelancer (associated with a company, e.g. limited company)
• Economically Dependent Freelancer (TRADE)
• Collaborating freelancer
• Agricultural freelancer

Additionally, there are more specific subcategories, such as freelancers running commercial businesses, professional athletes under special regimes, and professionals like lawyers or veterinarians, who often belong to professional associations and may contribute through private mutual insurance schemes.

Some freelancers operate from physical locations, like shops open to the public, while others work from home or coworking spaces. Below, we explore each freelancer type in more detail.

Sole trader (Autónomo persona física)

This is the most common type of freelancer in Spain. Sole traders operate with their personal assets, unlike companies that use business assets. This means they have full liability for any business debts–a potentially high personal risk.

Typical activities include freelance work, retail trade (e.g. selling goods), and consulting services. This category is ideal for individuals seeking full control over their business and working independently.

Corporate freelancer (Autónomo societario)

A corporate freelancer sets up a commercial company, often employing staff. Income is considered part of the partner’s profits, which can bring tax advantages and a more formal structure for the business.

This setup is common for those looking to scale their business, manage greater resources, or operate as a registered company with a legal structure and capital.

Economically dependent freelancer (TRADE)

A TRADE is a freelancer who earns 75% or more of their income from a single client–creating a clear economic dependence. This dependency is what defines this category.

To protect both parties, a contract must be signed between the TRADE and the client. This arrangement grants certain additional rights and protections, regulated by the Statute of Self-Employment, which sets out the legal framework.

TRADEs are common among professionals who work almost exclusively for one company.

Collaborating freelancer (Autónomo colaborador)

These are spouses or close relatives of a registered freelancer who support their business and cannot register as independent freelancers themselves.

To become a collaborating freelancer, one must submit documentation such as the DNI/NIE, family book, and a copy of the 036/037 form from the main freelancer. It’s a good option when working closely with a relative.

Collaborators do not file VAT returns or make partial income tax payments.

Agricultural freelancer (Autónomo agrario)

Agricultural freelancers operate under the Special Scheme for Agricultural Self-Employed Workers (SETA) and perform various agricultural activities.

They benefit from a lower contribution rate compared to other freelancers. To qualify, at least 50% of their income must come from agricultural work, and their annual net income must not exceed certain limits.

This category is essential for Spain’s agricultural sector, reflecting its unique requirements and challenges.

Freelancer contribution fee (Cuota de Autónomos)

The freelancer contribution fee is the monthly amount paid by self-employed workers for carrying out their activity. Key aspects include:

• During the first 12 months, new freelancers can benefit from a reduced flat rate of €80.
• The amount of the fee depends on the chosen contribution base.
• It also varies according to the income brackets set by the Spanish government since 2023.
• The fee must be paid monthly, starting from the first day of activity until the last.

Freelancers contribute based on their annual net income from all professional activities. They can also adjust their contribution base up to six times a year, depending on income changes. This flexible contribution system allows freelancers to adapt their payments to match their earnings.

By paying the fee, freelancers gain access to a range of social services, including:

• Healthcare
• Sick leave benefits
• Maternity and paternity leave

Agricultural freelancers are subject to a special general contribution regime, which allows them to pay a lower fee than other types of freelancers.

Bonuses for freelancers

Freelancers in Spain have access to various national and regional support programmes aimed at promoting self-employment and economic activity.

• New freelancers can benefit from the flat-rate scheme, which allows them to pay just €80 per month during their first year of activity to ease their start in the market.
• Freelancers with disabilities or those who are victims of gender-based violence may qualify for a reduced rate for up to 24 months.
• Freelancers who are caring for a child with a serious illness can receive a 75% discount on their monthly contribution.
• Freelance mothers returning to work after maternity leave can receive an 80% discount on their fee for two years.

These forms of support have a significant impact on the sustainability and growth of freelancers in the labour market.

There are also bonuses for freelancers who hire employees, helping to support work–life balance and the creation of new jobs.

Tax obligations

Freelancers in Spain are required to file both annual and quarterly tax returns and manage their own bookkeeping. All self-employed professionals have obligations toward both Social Security and the Tax Agency (Agencia Tributaria).

When issuing invoices, freelancers must apply personal income tax (IRPF) withholding–typically 15%, or 7% for new professionals.

The main taxes freelancers must declare are Value-Added Tax (VAT/IVA) and Personal Income Tax (IRPF), using specific tax forms:

• Form 303: Submitted quarterly, this form records VAT collected and paid.
• Form 390: The annual VAT summary, consolidating all the quarterly reports.
• Form 130 or 131: Used to declare IRPF depending on the estimation regime selected by the freelancer.

There are several VAT rates applicable depending on the type of economic activity:

• General rate
• Reduced rate
• Super-reduced rate

Freelancers who operate under the modular system (régimen de módulos) must file Form 131 instead of Form 130.

Advantages and disadvantages of being a freelancer

Being a freelancer offers significant work flexibility, as you can set your own schedule and tailor your workload to fit your personal preferences. Freelancers also have the potential to earn more, since they keep all the income they generate–after taxes.

However, freelancers typically lack traditional employee benefits such as paid holidays or employer-provided health insurance.

One of the main challenges of freelancing is financial instability, as income can fluctuate considerably from month to month depending on the situation. Freelancers also face greater difficulty securing clients, since they must invest time in finding new projects.

Finally, being self-employed can lead to professional isolation, as freelancers often work without coworkers or a team environment.

Final thoughts

Understanding the different types of freelancers in Spain is essential for making informed decisions about your professional future. From the definition and requirements to the pros and cons, this article has broken down the key aspects of working as a freelancer.

No matter what type of freelancer you choose to be, it’s crucial to stay well-informed and prepared to face the challenges–and seize the opportunities–this way of working offers. 

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