REGISTER AS AUTONOMO

WE CAN REGISTER YOU AS AN AUTONOMO BEFORE THE TAX AGENCY & SOCIAL SECURITY

· TAX ADVISE & COMPLIANCE
· ACCOUNTING
· LABOUR LAW
· INTELLECTUAL PROPERTY

What is the status of Autonomous?

Self-employed status is the Spanish equivalent of a self-employed or freelance worker and also includes persons (without legal personality) exercising small businesses. Anyone carrying out any of these activities is required to legalise these activities as regards registration, payment of taxes and the levying of VAT. So the answer to the question “I have to register as self-employed” is usually “Yes” if you are earning money in Spain and are not employed or conduct business through a company.

Anyone who starts a profitable business in Spain (when they are not employees or if they do it through a company) must legalise this situation with regard to registration, accounting, expenses and taxes.

Steps to register as a Spanish self-employed “Autónomo”:

(i) Register with the Agenzia delle Entrate “AEAT” by filling in the “Form 036” under the item corresponding to the tax on economic activity “IAE” to be developed. To be registered as a resident taxpayer, you must fill in another form, “Form 030”.

(ii) Enrolment in the Spanish social security system

What are the requirements?

There are no requirements for showing business plans, capital or demonstrating professional qualifications. Membership of the NETWORK autonomous social security system requires that you are already registered in the social security system and this involves another fairly simple registration process. Similarly, the Tax Authority also expects to be registered as a resident taxpayer, which means completing another form (Form 30).

For certain types of activities (e.g. anyone opening premises to the public) the municipality requires an opening licence. This activity license is granted to the owner, so it must be renewed every time there is a change in the activity on the premises.

Once registered, the ‘Autónomo’ will be included in the ‘RETA’ which is the scheme governing the social security contribution of self-employed workers in Spain.

Accounting tips

The “Autónomo” must keep a register of:

  • Invoices issued as a result of its activity.
  • Invoices received related to its activity
  • Expenses related to its activity.
  • Investments in goods related to the activity. Accounted for goods of more than € 300 not to be “consumed” in just one fiscal year.

All the invoices that the “Autónomo” issues must contain the following information:

  • Invoice number
  • Date of issuance
  • Your name, NIE and address
  • Holder of the invoice data
  • Description of goods and services
  • Taxable base
  • Type IVA (VAT) depending on the service/product 4%, 10% or 21%.
  • IVA amount
  • IRPF retention to the holder of the invoice, if any

Taxes

  • Quarterly VAT declarations to be submitted to the AEAT, presenting the “303 form” in April, July, October and January.
    Each “Autonomous” must charge VAT on its own invoices (there are some exceptions – for example, Autonomous invoice only businesses abroad). In the quarterly returns, VAT must be paid on the amount you have collected from your income within 20 days of the end of the month.

In order to recover the VAT charged on its costs, Autónomo must keep a register of (i) invoices received and (ii) expenditure relating to its activity.

Note that nothing can be claimed without an appropriate invoice, which means an invoice with the above requirements.

IRPF quarterly declarations, presenting the “130/131 form”. This is not necessary if 70% or more of the income is subject to deductions, so you may choose not to file a quarterly tax return.
If a professional invoices another Spanish Autónomo professional or another undertaking for its services, the latter must retain a percentage of the value of the invoice to be paid to the Tax Agency as an advance on income tax on behalf of the Autónomo.

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