You might’ve seen Spain on videos or even been there on vacation. It’s a beautiful country, with cheap living costs. It’s super attractive for freelancers because of the weather and prices.
But to get started freelancing in Spain, you’ll have to register as a freelancer, pay your taxes like any other country, and you’ll have to pay a monthly fee of €300 to the Spanish government to be a freelancer. This gives you access to the Spanish health system and contributes to your retirement.
While it’s not the most attractive element of freelancing in Spain, people still do it because they can access a warm country and live well at great prices. Let’s get into step-by-step how you get started freelancing in Spain.
How To Register As A Freelancer In Spain
In Spain, a freelancer is called an autónomo. This is super helpful when you do research and if you need to ask for help in the Spanish community.
As long as you’re older than 18, then you’ll be able to register as a freelancer in Spain.
Just like in any other country, you need to get a couple of things in order before you can start working as a freelancer in Spain.
You’ll have to acquire the following:
- Work permit
- A bank account, including an IBAN
- An identity number (NIE)
- A social security number
- Proof of residency
- And registration in your economic activities
First, you’ll need to apply for your work permit, which I recommend before you move to Spain. You can do that on the Spanish government’s website.
Next, you’ll need to get your foreign identity number. You’ll have to fill out an EX-15 again on the Spanish government’s website for this. You’ll then need to submit the following:
- Your EX-15
- A business plan describing what you’re doing or what you’re planning to do in Spain
- A copy of your passport
- A passport photo
This cost around €15 to apply for, and then you’ll just have to wait.
When that’s done, it’s time to register with the tax authorities in Spain. This should be straightforward, filling out the model 037 application on the Spanish government’s website.
Now you can go and get a bank account, and you’ll have to do that before getting your social security number. You can choose almost any, but go for a bank which supports English if you don’t speak Spanish.
Then it’s time to register to get your social security number, which is your private identification number. To do this, you’ll first need the following documents:
- Your NIE number
- Your passport and a copy
- The IRPF form you got from the tax authorities
- Proof of address
- Bank details
With all this in order, you’re now ready to start freelancing in Spain. Remember, you’ll have to pay a monthly fee of around €286.10 euro to be able to work as a foreign freelancer in Spain. This covers your health insurance and contributes to your retirement funds.
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Why Start Freelancing In Spain?
Spain is a beautiful country, both within nature, but they also have wonderful weather all year round, cheap living costs, and is a European country. All of these elements make it super attractive for foreigners to move to Spain to work and enjoy all the benefits.
Many freelancers move to Spain while working for companies in other countries simply because they get an excellent salary while having low living costs, beautiful weather and the ability to do what they want when they want it.
How To Send Invoices In Spain As A Freelancer
An easy way to send invoices in Spain is using an application like Xolo. They already support all the Spanish regulations for what an invoice needs to contain.
If you wish to send invoices by yourself, make them in Google Docs or another way. Then I’ve made a complete guide of what an invoice needs to contain before you send it out.
How To Do Taxes As A Freelancer In Spain
Now you have 3 types of taxes working as a freelancer in Spain, and this is probably the least attractive part of working in Spain.
While in other countries, you don’t need to pay corporate taxes for your surplus. You have to in Spain.
VAT (IVA)
The first type of tax you need to pay is VAT. This is common for any type of country and mandatory in Spain as well. There is nothing new to this. Every time you send an invoice to a client, you add VAT. This VAT is not yours, it’s the government, so all you have to do is register it, and pay it to the government, whenever they’re asking for it.
On the plus side, for everything you buy with VAT, you can subtract from this amount as long as you’re registered for VAT in Spain.
Income tax (IRPF)
Just like any other country, you’ll have to pay an income tax. This is only of your surplus, so just like VAT. All your expenses will be subtracted from your income; then, it’s the surplus you pay income taxes for.
Depending on your income level, your tax rates increase or decrease. Right now, the rates are as follows:
Income | Tax rate |
---|---|
€0 to 12,450 | 19% |
€12,451 to 20,200 | 24% |
€20,201 to 35,200 | 30% |
€35,201 to 60,000 | 37% |
€60,001 to 300,000 | 45% |
Freelance fee
Now this is something unique to Spain, and you’ll have to pay a monthly fee of around €300 to be a freelancer in Spain. This is an obligatory payment, giving you access to the Spanish health system and contributing to your retirement funds.
Your fee changes depending on your income, and you can see a table view here.
There is not a lot of automation, so you’ll have to make an extra effort to stay on top of these 3 taxes, as the Spanish government won’t be of too much help unless you ask them.
Conclusion
So freelancing in Spain has its ups and downs. You definitely get beautiful nature, cheap living costs and great weather. But you have a monthly fee you have to pay, and the Spanish government is a bit behind when it comes to technology.
If you want the great things from Spain but want to skip the monthly freelance fee, then take a look at how to get started freelancing in Portugal.
FAQ
How much does it cost to be a freelancer in Spain?
You’ll have to pay a fee of up to €300 to register as a freelancer in Spain, and that fee is a monthly fee. This is mandatory to pay, and while it’s not attractive, you’ll get access to the Spanish national health system, contributing to your retirement.
Do freelancers pay taxes in Spain?
Yes, they do. The tax in Spain is named Impuesto Sobre el Valor Añadido (IVA). You’ll have to pay this; the rates will vary depending on your income level.
Furthermore, you’ll pay a corporate tax, like any other company in Spain, of 21% of your surplus.
Does Spain have a freelance visa?
Yes, they do, to some extent. As long as you’re older than 18 years old, you’ll be able to obtain a self-employed work visa. While it doesn’t bring benefits like some other countries, it does give you access to start working in Spain as a freelancer.