Have you ever wondered how it is to become a freelancer in Spain? Some people may think that becoming a freelancer in Spain is complicated. But actually, it’s not. Are you aware of the main taxes you’ll need to pay? In today’s post, we are going to tell you everything you need to know to succeed and to become a freelancer in Spain.
Definition of a freelancer
In case you move to Spain for work, you have two different options: work for a company or become a freelancer and work on your own, without contracts! You’ll just need to send an invoice to the company or individual to whom you are providing the service.
What do you need to become a freelancer
To become a freelancer in Spain, first you’ll need to meet some requirements. If you’re an EU national, you won’t need a work visa, but that is not the case if you come from a country out of the EU. Then, you’ll have to apply for a NIE to open a bank account or pay taxes. After that, you’ll be required to register your business and professional activity under the Economic Activities Tax (Impuesto de Actividades Económicas) and under the Special Regime for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos).
Duties of the freelancer
As a freelancer in Spain, you’ll have two basic obligations:
Taxes. Two types of taxes are to be paid by freelancers: VAT (“IVA,” in Spanish) and Income Tax (“IRPF”). You need to include VAT in all the invoices you send to your clients. This tax corresponds to the 21% of the selling price. You must bear in mind that the Spanish tax year coincides with the calendar year: from January to December. In line with this, you will have to file quarterly returns (every three months): in January, April, July, and October.
Social security: you must register and pay a contribution monthly to receive assistance in the Spanish public health system and to be assured a pension in the future. You don’t need to worry, since this will be charged directly to your bank account through a flat fee. The fee starts from €60 and gradually rises until a total of €289.
Advantages and disadvantages
As everything in life, becoming a freelancer has pros and cons. The main advantages are that it is the most affordable way to start a project without a large initial investment and that that you decide when, where and what to work on. Nevertheless, working on your own also has disadvantages, such as not having a fixed salary or not being able to distinguish between your business and personal assets, which means that you’re responsible for any debt acquired because of your work.
It’s up to you!
What are you waiting for? Do not hesitate to come to Spain and become a freelancer! Please visit this article if you want to learn more about this. We hope that this post “How to become a freelancer in Spain?” has been of interest for you. Please do not hesitate to visit our website for further information.