Spain (ES)
Spain is a parliamentary constitutional monarchy of 17 autonomous communities stretching from the sun-scorched Andalusian coast to the Pyrenean peaks, renowned for its passionate flamenco and football culture, world-famous gastronomy from tapas to Michelin-starred restaurants, 300+ days of sunshine on the Costa del Sol and the Balearic Islands, and a relaxed Mediterranean pace of life that consistently ranks it among Europe's most desirable destinations for expats.
Capital: Madrid
Region: Europe
Language: Spanish
Currency: EUR (€)
Cost of living: Affordable (index 55)
Emergency: 112
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Business Setup
Start a business or go freelance in Spain.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Obtain NIE (non-EU) or Certificado de Registro de la UE (EU citizen) if you don’t have one. This is a prerequisite for every other step.
- 2 2. Register with Hacienda via Modelo 036 or 037 (simpler): declare activity type via IAE code (epígrafe — e.g. 731 "Technical engineers", 834 "Liberal professions"), whether you charge IVA, and your tax address (domicilio fiscal).
- 3 3. Register with Tesorería General de la Seguridad Social (TGSS) as autónomo via Modelo TA.521 — within 60 days of starting activity. Choose your contribution base (post-2023: by your estimated net earnings in 13 progressive brackets).
- 4 4. Apply for Tarifa Plana: €80/month flat rate for the first 12 months (can extend 12 more if net earnings < SMI in year 1). Post-12-months: progressive bracket rate, from €232 to €590/month in 2026.
- 5 5. Get a digital certificate (Certificado FNMT) or Cl@ve PIN for online submissions — mandatory for all Hacienda / Seguridad Social online filings.
- 6 6. Decide on IVA regime: Régimen general IVA (21% standard) is the default. Recargo de equivalencia applies to certain retailers. Teachers, doctors, some exports are exempt. No "Kleinunternehmer" equivalent in Spain — all autónomos must charge IVA unless their activity is exempt.
- 7 7. Register your books: Libro de facturas emitidas, Libro de facturas recibidas, Libro de bienes de inversión. Use software like Holded, Contasimple, Quipu, Sage or FacturaDirecta.
- 8 8. File quarterly: Modelo 303 (IVA), Modelo 130 (IRPF fractional payment 20% of net profit) or Modelo 131 (if on módulos system). Annual: Modelo 390 (IVA summary), Modelo 100 (Renta).
- 9 9. If you exceed €3,000/year paid to any supplier or client, include in annual Modelo 347.
Tax registration
Agencia Tributaria — Modelo 036 or 037 at sede.agenciatributaria.gob.es. Cl@ve PIN or Certificado Digital required.
VAT threshold
There is no exemption threshold for IVA in Spain — autónomos must register for IVA from their first invoice unless their activity is specifically IVA-exempt (education, medical/dental, certain insurance, financial services). Plans to introduce a €85,000 small-business exemption (EU Directive 2020/285) are pending transposition.
Invoicing
Invoices must include: your full name and NIF/DNI/NIE; client’s full name and NIF/CIF; invoice number (consecutive); date; description of service; net amount; IVA rate and amount; IRPF retention (retención, typically 15% for professionals, or 7% in first 2 years); total to pay; bank details. From 2025–2026: Ley Crea y Crece mandates e-invoicing (factura electrónica, Verifactu system) for B2B transactions — rolling out gradually.
Social security
Autónomos pay a single monthly cuota to Seguridad Social (RETA regime) covering pension, sickness, maternity, and — since 2023 — unemployment (cese de actividad). No long-term unemployment benefit equivalent to employees’ paro, but 4–24 months cese de actividad possible if you close the business involuntarily.
💡 Key gotcha: autónomo monthly quota is payable even in months with zero income. Always budget for it. IRPF retention (15%) is withheld by your business clients on each invoice — this is an advance on your IRPF, reconciled in the annual Renta. Use Tarifa Plana aggressively: €80/month in year 1 is one of the best deals in Europe.
🏢 Business Structures
Autónomo · Trabajador Autónomo / Empresario Individual
Sole Trader / Self-employed
None
Min. capital
1–2 days
Setup time
Liability: Unlimited personal liability (unless ARLM — Emprendedor de Responsabilidad Limitada — is registered)
Setup cost: Free registration at Hacienda + Seguridad Social
Best for: Freelancers, consultants, IT contractors, designers, therapists, small professional practices. Combine with Ley Beckham or Digital Nomad Visa if eligible.
Autónomo Societario · Autónomo Administrador de Sociedad
Director of an SL / company director self-employed
Set by company type
Min. capital
After SL is constituted
Setup time
Liability: Company: limited. Director: limited except for Seguridad Social debts.
Setup cost: Seguridad Social only (minimum autónomo base higher than individual tier)
Best for: Business owners who hold 25–50%+ of shares or who run their company. Different social security base applies.
SL / SLU · Sociedad Limitada / Sociedad Limitada Unipersonal
Limited Liability Company (LLC)
€3,000 (reduced to €1 via Ley Crea y Crece 2022, with capital-building rules)
Min. capital
1–4 weeks (accelerated CIRCE / PAE: 24–72h for simple cases)
Setup time
Liability: Limited to company assets
Setup cost: €600–1,500 (notary, Registro Mercantil, tax fees) — Ley de Emprendedores fast-track cheaper
Best for: Most established businesses, consulting, agencies, e-commerce, property holding. The default business structure in Spain.
SA · Sociedad Anónima
Public Limited Company (PLC)
€60,000 (25% paid at constitution)
Min. capital
4–8 weeks
Setup time
Liability: Limited to company assets
Setup cost: €2,000–5,000+ (notary, Registro Mercantil, legal)
Best for: Large businesses, listed companies, those seeking major investment. Most SMEs do not need SA.
Comunidad de Bienes (CB) / Sociedad Civil (SC) · Comunidad de Bienes / Sociedad Civil
Joint-ownership partnership / civil partnership
None
Min. capital
1–2 weeks
Setup time
Liability: Unlimited joint personal liability
Setup cost: Low — private agreement + Hacienda registration
Best for: Small partnerships of 2+ professionals (e.g. two freelancers sharing an office). Simpler but no liability protection.
Cooperativa · Sociedad Cooperativa
Cooperative
Varies (typically €3,000+)
Min. capital
4–8 weeks
Setup time
Liability: Limited
Setup cost: €1,000–3,000
Best for: Worker-owned businesses, farming cooperatives. Favourable tax regime; Mondragón (Basque Country) is the flagship model.
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