What is an Autónomo?
An autónomo is a self-employed individual registered with both:
- The Spanish Tax Agency (Agencia Tributaria)
- The Spanish Social Security system (Seguridad Social)
This allows you to legally operate a business, issue invoices, pay taxes and access Spain’s public healthcare and social security benefits.
Before You Register
Before becoming self-employed you’ll normally need:
- NIE. British and other non-EU nationals must also hold a valid TIE (Foreigner Identity Card) or the appropriate residence/work permit, where applicable.
- A Spanish address
- Registration with the Tax Agency
- Registration with Social Security
- A Digital Certificate (highly recommended)
- A Spanish bank account
- To choose the correct business activity (IAE code)
Our office completes all registrations on behalf of our clients.
Monthly Social Security Contributions
Being self-employed in Spain means paying monthly Social Security contributions. These contributions provide access to:
- Spain’s public healthcare system
- State pension
- Maternity and paternity benefits
- Sick pay
Reduced rate for new autónomos
If this is your first registration, or you have not been registered for at least three years, you may qualify for the reduced contribution of approximately €80 per month.
If your annual income remains below the minimum income threshold, this reduced contribution may continue for a second year.
Income-based contributions
After the reduced period ends, your monthly contribution depends on your estimated annual net income.
Most autónomos pay somewhere between approximately €300 and €550 per month, although higher earners will contribute more.
If your estimated income changes during the year, your contribution level can be adjusted. At the end of the year, if you paid too little you’ll pay the difference; if you paid too much, you’ll receive a refund.
VAT (IVA)
VAT (known in Spain as IVA) is a consumption tax charged on most goods and services. The standard rate is 21%, although some goods and services benefit from reduced rates of 10%, 4%, or may be exempt.
If your activity is subject to VAT, you’ll add VAT to your invoices and collect it on behalf of the Spanish Tax Agency. Every quarter you submit a VAT return showing:
- VAT charged to customers (output VAT)
- VAT paid on eligible Spanish business expenses (input VAT)
You pay only the difference. If you’ve paid more VAT than you’ve collected, the balance normally carries forward until it can be offset against future VAT liabilities or reclaimed (where applicable).
Quarterly Income Tax (Modelo 130)
Most self-employed individuals also submit a quarterly income tax return using Form 130. Unlike VAT, this return is based on your profit:
Business income minus allowable business expenses.
If you make a profit, you usually pay 20% of that profit as an advance payment towards your annual income tax. If you make a loss, no payment is due.
These are advance payments only—they are not your final income tax bill.
Annual Income Tax Return (Declaración de la Renta)
Every year, usually between April and June, all residents must submit their annual personal income tax return. This includes all sources of income, such as:
- Self-employment profits
- Employment income
- Rental income
- Pension income
- Interest
- Dividends
- Capital gains
- Overseas income (where taxable in Spain)
Any quarterly payments made during the year are deducted from your final tax liability. If you’ve paid too much, you’ll receive a refund; if you’ve paid too little, you’ll pay the balance.
Married couples may choose either separate or joint returns depending on which is more beneficial.
Invoicing Rules
Spanish invoicing rules are strict. Invoices should include:
- Sequential invoice number
- Invoice date
- Supply date (if different)
- Your name
- Your tax number (NIF)
- Your address
- Customer details
- Description of goods or services
- Taxable amount
- VAT rate
- VAT amount
- Total payable
Invoices must be numbered consecutively. If an invoice contains an error, it should never be deleted. Instead, a Rectifying Invoice (Factura Rectificativa) must be issued.
Copies of invoices should normally be kept for at least four years.
Verifactu — The New Digital Invoicing System
Spain is introducing Verifactu, a new anti-fraud electronic invoicing system. Although implementation has been postponed several times, it is expected to become mandatory from 2027 for most businesses and self-employed individuals.
The system will:
- Generate official invoices
- Include a QR code on every invoice
- Prevent invoices from being altered or deleted
- Send invoice information automatically to the Spanish Tax Agency
- Increase transparency and reduce tax fraud
Our office has been using Verifactu since its introduction in September 2025. Many people are understandably cautious about the change, but once you start using it, it makes invoicing easier, safer and more efficient. We’ll ensure your transition is smooth and stress-free.
Annual Information Return (Modelo 347)
Every February, businesses and self-employed individuals must submit Form 347. This reports customers and suppliers with whom total annual transactions exceed €3,005.06 (including VAT).
The Tax Agency cross-checks this information with the declarations submitted by the other party. Accurate reporting is therefore essential to avoid enquiries.
Deadlines You Should Know
| Filing | Normally Due |
|---|---|
| VAT Return | April, July, October, January |
| Income Tax (Modelo 130) | April, July, October, January |
| Annual Income Tax (Renta) | April–June |
| Modelo 347 | February |
Why Work With Us?
Spanish taxation can appear complex, especially if you’re new to the country. Having us on your side means:
- Correct registration from day one
- Quarterly tax returns filed on time
- Advice on deductible expenses
- Support with tax inspections
- Ongoing guidance as your business grows
- Peace of mind knowing you’re fully compliant
- Efficient and quick communication