An autónomo (self-employed worker) in Spain is a person who works on their own account. This article explains what an autónomo is, the requirements to become one, the different types, and the main tax obligations. The autónomo also takes on unlimited liability for their business, answering for it with their personal assets.
Key points
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Definition of an autónomo in Spain
In Spain, an autónomo is a natural person who regularly carries out an economic activity on their own account and earns income from it. This definition covers everyone from small retailers to professionals such as consultants and freelancers. Autónomos must issue invoices for the services they provide and keep an up-to-date record of the invoices they issue and receive.
Autónomos are also required to contribute to Social Security, which gives them access to services such as healthcare and benefits for temporary disability or maternity. This contribution requirement is one of the many responsibilities of working on your own account in Spain, as it guarantees access to each corresponding social benefit. The autónomo is responsible for paying the full amount of their Social Security contribution.
Requirements to become an autónomo
To be considered an autónomo in Spain, you need to:
Self-employed workers must meet the following requirements and conditions:
Depending on the type of activity to be carried out, autónomos must apply for the necessary licences, which vary by location. These requirements ensure that the autónomo complies with all legal and tax regulations from the start of their activity. It is essential to make an informed decision about the type of autónomo and the requirements to meet, in order to avoid legal or financial problems in the future.
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Types of autónomo in Spain
In Spain, the figure of the self-employed worker covers several categories, each with different characteristics and obligations but sharing common responsibilities. The main types and groups of autónomos include:
Within these types and groups there are also specific subcategories, such as autónomos who carry out business activities, athletes under a special regime, and professionals such as lawyers and vets, who are often tied to professional associations and may contribute through their mutual societies. Some autónomos carry out their activity in a physical establishment, such as premises open to the public, while others work from home or from coworking spaces. Below, we explore each of these types of autónomo in more detail.
Sole-trader autónomo (persona física)
In Spain, sole-trader autónomos (persona física) are the most common group of self-employed workers. This group is very widespread in the country. They act with their personal assets, unlike a legal entity that uses the company’s assets. This means they take on full liability for their business debts, which can involve significant personal risk in their usual way of operating.
Common activities for sole-trader autónomos include professions such as freelancing, retail trade (for example, selling goods), and consulting services. This category suits those who want to operate individually and keep full control over their business.
Company-associated autónomo (societario)
A company-associated autónomo (societario) is someone who sets up a commercial company. This means they have formed a commercial company and usually have employees on their payroll. The income of company-associated autónomos is treated as earnings from their shareholding, which can offer tax benefits and a more formalised structure for their activity. Partners can also benefit from this structure.
This way of working is common among those who want to expand their business and run a company with greater resources and capacity for growth, share capital, and a more formal business structure.
Economically Dependent Self-Employed Worker (TRADE)
A TRADE is a self-employed professional who earns 75% or more of their income from a single client, which implies a relationship of economic dependence on that client. This economic dependence on a single client is the main characteristic that defines a TRADE, who is also considered part of a group of economically dependent self-employed workers through their relationship with the client. To regulate this situation of dependence and guarantee rights and obligations, a contract between the TRADE and the client must be formalised.
To be considered a TRADE, an autónomo must meet this dependence requirement, which can affect their job stability but also gives them certain additional protections. The rights and obligations of TRADEs are regulated by the Statute of Self-Employment (estatuto del trabajo autónomo), which sets out the specific legal conditions for this category. This category is common among professionals who work almost exclusively for a single company.
Collaborating autónomo (colaborador)
Collaborating autónomos (colaboradores) are relatives or spouses who help in the business of a main autónomo and cannot be considered autónomos in their own right. These workers register in order to collaborate with spouses or relatives in their economic activity, including those related up to the second degree of kinship.
To become a collaborating autónomo, you must submit certain information, including the DNI or NIE, the family book, and a copy of the Modelo 036/037 of the main autónomo’s registration, as well as the relevant qualification.
Being a collaborating autónomo is a good option when you mainly work with a relative in their business, since collaborators do not file VAT returns or make instalment payments of personal income tax (IRPF).
Agricultural autónomos
Agricultural autónomos are workers engaged in farming activities under the special SETA scheme. The activities they carry out include various agricultural economic activities, and they are subject to a special contribution regime that allows them a lower fee than other types of autónomo, as well as registration as autónomos.
To be in this category, they must earn at least 50% of their total income from their farm and must not exceed certain annual net income limits. This category is vital for the agricultural sector in Spain and the high demands it involves.
Autónomo contribution fee
The autónomo contribution fee (cuota de autónomos) is the monthly amount an autónomo pays for their activity. The key points are:
Autónomos contribute based on their annual net income from all of their activities. They can also change their contribution base up to six times a year if their income varies. This flexible contribution system lets autónomos adjust their payments according to their income.
By paying the fee, an autónomo gains access to a range of services. These include healthcare, as well as benefits for temporary disability and maternity or paternity leave. Agricultural autónomos are subject to a special general contribution regime, which allows them a lower fee than other types of autónomo.
Aid and discounts for autónomos
Autónomos in Spain can access a range of state and regional aid designed to encourage their economic activity. New autónomos can benefit from the flat rate (tarifa plana), a measure that lets them pay only 80 euros per month in the first year to help them get their activity off the ground.
In addition, autónomos with a disability or victims of gender-based violence can opt for a reduced fee for 24 months. Autónomos who care for a child with a serious illness can receive a 75% discount on their fee. This aid has a significant impact on the sustainability and growth of autónomos in the market.
Self-employed women who return after maternity leave can receive an 80% discount on their fee for two years. There are also discounts for those who hire workers, supporting the balance between professional and personal life.
Tax obligations of autónomos
Autónomos must file their annual and quarterly taxes, as well as manage their own accounting. All autónomos have obligations relating to Social Security and the Tax Agency. The IRPF (personal income tax) withholding on the invoices of self-employed professionals can be 15%, or 7% for new professionals.
Value-Added Tax (IVA) and IRPF are filed using different forms (modelos):
There are different VAT rates that apply depending on the autónomo’s economic activity, including the standard, reduced, and super-reduced rates. Those operating under a modules regime must file Modelo 131 instead of Modelo 130.
Advantages and disadvantages of being an autónomo
Being an autónomo allows significant work flexibility, since you can set your own schedule and adapt your work to your personal preferences. Autónomos also have the chance to earn more by keeping all the income they generate, minus taxes. However, autónomos do not usually have access to traditional employment benefits such as paid holidays or employer-provided health insurance.
That said, one of the challenges of being an autónomo is financial instability, as income can vary considerably from month to month in different situations. They may also find it harder to win clients, as they have to spend time looking for new work. In addition, being an autónomo can lead to professional isolation, since there are no colleagues around.
Summary
Knowing the different ways to be an autónomo in Spain is essential for making informed decisions about your professional future. From the definition and requirements to the advantages and disadvantages, this article has broken down the most important aspects of being an autónomo.
Whatever type of autónomo you choose to be, it is crucial to be well informed and prepared to face the challenges and make the most of the opportunities this way of working offers.
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Frequently asked questions
What does it mean to be a self-employed worker?
Being a self-employed worker means carrying out an economic activity in a regular and direct way, without being under the direction of another person, and receiving payment for it. This model lets a person practise their profession independently and run their own business.
What is an autónomo in Spain?
An autónomo in Spain is an individual who carries out an economic activity independently and earns income from that activity. This status involves specific tax and legal responsibilities.
What are the requirements to become an autónomo?
To be an autónomo, you must be registered with the Special Regime for Self-Employed Workers (RETA) and with the Tax Agency (Agencia Tributaria), be at least 18 years old, and hold the licences required for the activity you plan to carry out. Meeting these requirements ensures the legality of the business activity.
What aid is available for autónomos in Spain?
Autónomos in Spain can access aid such as the flat rate (tarifa plana), reduced fees for people with a disability or victims of gender-based violence, as well as discounts related to maternity and the care of seriously ill children. It is essential to learn about these options to make the most of the available benefits. There is also aid for autónomos in various regions such as Madrid, Catalonia, and Galicia.
What are the main tax obligations of autónomos?
Autónomos are required to file their quarterly and annual taxes, as well as manage their accounting and apply IRPF withholding on their invoices. It is essential to meet these responsibilities to avoid penalties and ensure the proper running of their economic activity.
