Working as autonomo or freelance in Spain?

Working as autonomo or freelance in Spain?

David Pelayo

Many expats from all around the world 🌎, sometimes, wonder how to come to Spain to initiate their activity from here.

Why? Who knows? Maybe because the weather, climate and air conditions, pricings and quality of life is good in Spain?

I mean, look upon these two options here:

  1. Barcelona.
  2. Madrid.

And those are only two instances of many other cities from which you could work remotely.

Lastly, I’m receiving tons of emails from people who are wondering what are the pros and cons of constituting a society or just becoming your own society by signing up as autónomo and pay your taxes here.

Most of the times, those doubts are mainly financial-alike uncertainties, which, due to unknowing the answers, some consultancy is therefore needed.

Autónomo stands for self-sufficient: working as freelance/contractor.

So instead of letting the employeer being responsible for tax liabilities and other related topics, you manage everything by your own. This discussion commonly go bound to the legal system the country is attached to. But this topic has already been covered in one of my previous article.

What’s then best for my wallet?

Would it be better setting up a company vs becoming autonomo in Spain? It depends.

It depends mainly on the numbers. You could generally take this advise as trustful: If you aren’t billing more than 50-60k €/year, simply sign up as Autonomo and your life will be easier.

Why, are you wondering? Because the amount of tax models you must be declaring is simply less than when having set your company as your main activity.

What about taxation?

A freelance in Spain

There is a long list of taxation sheets you might need to wonder about when you become Autónomo. Just an example:

  • The form 303.
  • The 130.
  • The 111.
  • The 115.
  • The 349.
  • The 390.
  • The 347.

If you want to find further information on these models, Google: 111 form site: and there you’ll have it.

The form 303. VAT. Self-assessment.

Here you’ll find the official info regarding this model.

The important notice is that anytime you have to charge VAT, you must declare this form. That’s the spanish law and if you’re willing to comply with them, you need to be aware of it.

This form is just informing the main Tax Office (Agencia Tributaria, formerly Hacienda) our quarterly results from a VAT perspective.

Regardless the result of it, whether you charged or not, registered in your bank account or hasn’t been payed yet, whether you have to pay VAT or claim some back/or compensate it.

Its yearly version is the form number 390.

Other forms related to VAT are the 349 (mandatory for intra-comunitary operators) and the 347 (if you charged any amount higher than 3001 € during the year).

The form 130. Personal Income Tax.

Companies and professional taxed under the direct evaluation system must submit this form if only no more than 70% of your income has been blocked. In other words: When you’re issuing a bill, if the amount linked to the IRPF (personal income tax) declared at the majority of your invoices the retention you had to inform, then you also have to explain Hacienda your numbers; for which reason they’ll request the 20% of your benefits, quarterly.

The form 111. Withholdings and payment on account.

Quarterly, companies and freelances declare witholdings due to employees or professional services contracted. Therefore, all those are also obligated to inform this form.

The yearly form of this one is the 190, which you’ll have to present in case you’re presenting the form 111.

A company in Spain

Here is the list of taxation sheets you need to know about if you’re about to operate with a company in Spain (a Limited Society, for instance):

  • Quarterly forms:
    • The form 115.
    • The 111.
    • The 303.
    • The 202.
  • Yearly forms:
    • The form 180.
    • The 190.
    • The 390.
    • The 347.
    • The 349.
    • The 200.

Should I go for Autonomo or a company?

As I said, if you’re going to generate no more than 60k €/year, easier and quicker to become autonomo and you’ll be 100% legally operating from Spain.

Else, consider to open up a SLNE (which you can Google) - Sociedad Limitada Nueva Empresa. You’d save a bit taxationwise, since only the 15% of the benefits during the first two years would need to be declared. After that period, the corporate income tax rises up to the 25%.

Do you need tailored consultancy on your needs?

I got you. If you reached this far; it was kind of interesting, right?

Or maybe I opened up for you a new world plenty of doubts? I’m pretty sure you’re a busy guy, so am I. But you can book some of my time if you’d PayPal me a few bucks.

  1. Up to 40 €, I’ll reply all your emails and search the info needed for you, considering the fact I’m spaniard: So I know the rules here, knowing where to go and who to ask in case your plans are terrificly impossible to achieve.
  2. Send me 50 € if you want to have a max half an hour conversation in english, italian, portuguese or spanish to know how to proceed with your case.
  3. Paypal me a hundred euros 👌 and you’ll book my time for a nice conversation which could last longer, up to an hour.

Here is my link

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