Autónomo and Taxes: The Realistic Guide

If you’re moving to Spain to freelance, consult, or run your own business, you’ll likely register as *autónomo*. Here’s the realistic picture — not the visa-blog version. > **A note:** this is general information, not personal tax advice. Hire an asesor fiscal before making irreversible decisions. See the [gestors and lawyers guide](/guides/gestors-lawyers-asesores). ## What autónomo actually means Autónomo is Spain’s self-employment status. You’re an individual operating a business under your own name (not a separate company). Most freelancers, consultants, contractors, and one-person service businesses use it. There’s an alternative — *sociedad limitada* (SL), Spain’s equivalent of a Ltd/LLC. SLs make sense once you’re consistently earning above €50-60k/year or have significant liability exposure; below that, autónomo is usually simpler and cheaper. ## What it costs The monthly cost has two parts: **1. Social security (*cuota de autónomo*)** Since 2023 Spain uses a progressive scale based on *rendimientos netos* (net earnings): - First year: a flat **€80/month** if it’s your first time registering as autónomo in Spain - Second year: still discounted if your earnings stay below SMI (minimum wage) - After that: scaled by income, typically **€230-590/month** for most people This is paid monthly to Seguridad Social regardless of whether you’ve earned anything that month. **2. Income tax (IRPF)** Pay-as-you-go via quarterly returns (Modelo 130) at roughly **20% of your quarterly profit**. Reconciled annually in the *renta* declaration. If most of your invoices are to Spanish businesses, your clients withhold (*retención*) 15% on your behalf — you only file informational quarterly returns rather than paying. This is the simpler path. **3. VAT (IVA) — sometimes** - B2B services within Spain: 21% IVA, filed quarterly (Modelo 303) - B2B services to EU clients (with VAT number): reverse charge, no IVA on your invoice - B2C services or services to non-EU clients: usually 21% IVA - Some professions exempt (medical, education, certain financial) Your asesor fiscal will tell you which bucket you’re in. ## How to register 1. **Tax registration** — Modelo 036 or 037, filed at Hacienda (the tax office) or online via your digital certificate. Declares your activity, address, and tax obligations. 2. **Social security registration** — *alta en el Régimen Especial de Trabajadores Autónomos (RETA)*, done within 30 days of activity start. Most people pay a gestor €80-150 to handle both at once. It’s an hour of work for them; days of confusion for you. ## The annual *renta* Every spring (April-June) all tax residents file the annual *renta* declaration covering the previous calendar year. This reconciles what you owe vs what you’ve paid quarterly. If you have only Spanish-source income, simple autónomo work, and a Spanish payroll, the renta can be DIY through the Agencia Tributaria portal. If you have foreign income, foreign assets, multiple income sources, or are claiming Beckham, hire an asesor fiscal. ## The Beckham Law tax regime A flat 24% income tax on Spanish-source earnings up to €600,000, for up to six years — instead of the normal progressive rate which tops out at 47%. Eligibility (since 2023 reforms): - Recent move to Spain (not tax-resident in the last 5 years) - Working remotely for a foreign employer, OR - Working in Spain for a Spanish company that fits certain conditions, OR - Recent Digital Nomad Visa holder Apply within 6 months of starting your Spanish work. The application is technical; most successful applicants use a specialist asesor. Beckham saves significant money if you earn over €60k/year and most of your income is foreign-sourced. Below that, the savings can be marginal once you account for filing complexity. ## The thing that surprises most newcomers **You pay the cuota even in months you earn nothing.** €80 in the first year is bearable; €290+ after the discount ends is not, if your business is seasonal or just slow that month. Plan a buffer. Equally: you pay Hacienda quarterly *in advance*. If you have a great Q1 followed by an awful Q2, you’ve already paid tax on Q1 profit you might later offset against Q2 losses. The annual renta reconciles, but cash flow is your problem in the meantime. ## Modelo 720 — foreign asset declaration If you have foreign bank accounts, investments, or property over €50,000 total, you must declare them annually on Modelo 720. The form is technical; the penalties for not filing are severe. If this applies to you, this is the single highest-value thing to give an asesor fiscal in your first year. ## When to hire help - **Always** for first-time autónomo registration - **Always** for Beckham Law applications - **Always** for Modelo 720 - **Usually** for the annual *renta* in your first 2 years - **Usually** for quarterly filings if you have any non-Spanish income - **Sometimes** if your situation stays very simple after year 2 A retainer with a Valencia asesor fiscal handling all autónomo filings runs **€60-90/month** — usually less than the cost of one filing mistake.