How to Register a Sole Proprietorship (Autónomo/a) in Spain

Setting up as an autónomo/a (self-employed sole proprietor) in Spain lets you start billing quickly, keep full control of your work, and deduct legitimate business costs. For digital freelancers and independent contractors, the process is largely online via Spain’s Tax Agency (Agencia Tributaria) and the Social Security Treasury (Tesorería General de la Seguridad Social, TGSS).

Is it easy? If you already have a Spanish digital ID (Cl@ve or a digital certificate), most people complete registrations the same day. The steps are clear, but Spain is formalistic: you’ll complete a tax census filing and a Social Security enrollment (RETA) before you start working.

The main challenges are paperwork and ongoing compliance—quarterly VAT (if applicable), quarterly income-tax prepayments, and monthly Social Security contributions based on your net income. The benefit is flexibility: you can launch without minimum capital, use your own name or a trade name, and scale or close with straightforward “baja” procedures online.

Disclaimer: This article is for information only and not legal advice. Always confirm details with official sources or a professional advisor.

What is a sole proprietorship in Spain?

In Spain, a sole proprietorship is a trabajador autónomo / persona trabajadora por cuenta propia (“autónomo/a”). You operate as an individual, not as a company. In practice you’ll register once with the Tax Agency for tax purposes and once with Social Security (RETA) for contributions.

How does a sole proprietorship (autónomo/a) work in Spain?

Autónomo/a vs. a Limited Company (Sociedad Limitada, “SL”) in Spain

An autónomo/a is fastest and cheapest to start; an SL offers limited liability and a corporate image but requires notary, registry and corporate compliance. You can form companies online via Spain’s CIRCE one-stop system.

Company costs/timing vary; see CIRCE and IPYME guides for official process details.

Step-by-step: How to register a sole proprietorship in Spain

Step 1: Confirm you’re eligible to be an autónomo/a

You must have a Spanish tax ID (NIF) and, if you’re a foreign national, a NIE. EU/EEA/Swiss citizens who will stay over 3 months must register in the Central Register of Foreigners (EX-18). Non-EU citizens generally need a self-employment residence/work authorization (autorización por cuenta propia, EX-07) before starting activity in Spain.

• Get a NIE: apply with the National Police (you can start from abroad via consular channels) using form EX-15 and pay the corresponding fee.

• Non-EU self-employment permit: review requirements and documentation on the Ministry’s 2025 guidance (Hoja 14) and use form EX-07.

Step 2: Set up your digital identity (for online filing)

Most registrations are telematic. Obtain Cl@ve credentials or a digital certificate from the Spanish Mint (FNMT). Both are free and widely accepted by AEAT and TGSS.

Step 3: Choose how you’ll identify your business

You may operate under your personal name. If you prefer a brand, you can register a trade name (nombre comercial) or trademark with the OEPM and check availability in its official search tool. This is optional for autónomos.

Step 4: Register with the Tax Agency (AEAT)

File the census declaration to start activity and select your IAE epígrafe (activity code) using Modelo 036 (standard) or Modelo 037 (simplified). You’ll also indicate VAT status and (if needed) intra-EU registration. Submit online via AEAT’s Censos WEB service.

• Forms: Modelo 036/037 – online & help.

• IAE activity list & book formats: Official resources and downloads.

If you’ll trade with EU businesses (buy/sell services or goods), also request inclusion in the intra-EU operators registry (ROI) (gives you a NIF-IVA listed in VIES). This is done in the same AEAT process.

Step 5: Enrol in Social Security (RETA) via Importass

Enroll as a trabajador/a autónomo/a with the TGSS before you begin activity (you can pre-register). You’ll forecast your net monthly income to determine your contribution base and you can later adjust it; TGSS also provides an official simulator. Do everything online in Importass.

New to RETA? In 2025 there is a reduced flat contribution of €80/month for the first 12 months if you meet the criteria; you request it during the alta.

Step 6: Start issuing compliant invoices and stay on top of returns

Once registered, you can invoice with your NIF and must follow Spain’s invoicing rules. Spain is phasing in certified e-invoicing/“Veri*factu” software requirements under RD 1007/2023 as amended by RD 254/2025—watch AEAT updates and make sure your tool is compliant.

For taxes, most autónomos file quarterly VAT (Modelo 303) and quarterly IRPF prepayments (Modelo 130) by the 1–20 of April, July and October, and 1–30 January for Q4 (deadlines shift if the last day is non-working).

Financial and tax obligations for sole proprietors in Spain

Income tax (IRPF): You pay IRPF on your business profits in your annual return, with quarterly prepayments if you use the direct-estimation method.

Social Security contributions (RETA): Since 2023 the system is income-based; your monthly cuota is a percentage of your chosen base within the bracket that corresponds to your forecast net income. In 2025 the combined general rate is 31.40% (breakdown in the official 2025 table). Example: if your base were €1,000, your monthly quota would be ~€314; if you qualify for the €80 reduced rate, you’d pay €80 during the first 12 months instead. Use the TGSS simulator for an exact figure.

VAT (IVA): Many professional services are subject to 21% VAT (others to reduced rates). File Modelo 303 quarterly; an annual summary may apply depending on your case. AEAT keeps a live page of VAT tax rates (21% general; 10% and 4% reduced—plus specific 5%/0% cases).

Record-keeping: Keep books of income/expenses and issued/received invoices. AEAT provides standardized book formats and confirms you may keep them electronically. Also watch the evolving certified invoicing software rules.

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FAQs

What is the minimum capital required to start as an autónomo/a?
None. You are not forming a company, so there’s no minimum share capital. Registration is administrative (AEAT + TGSS).

Do autónomos need to register for VAT?
If your activity is subject to VAT, yes—you’ll indicate this in Modelo 036/037 and then file Modelo 303 quarterly. Some activities are exempt; check AEAT’s VAT-rate pages for specifics.

How much are the standard monthly contributions?
They depend on the base tied to your forecast net income. The 2025 general rate is 31.40% of your base (e.g., base €1,000 ⇒ ~€314/month). New autónomos who qualify can apply the €80/month reduced rate for the first 12 months. Use Importass to simulate your case.

Can an autónomo/a hire employees?
Yes, but you must register as an employer and fulfill payroll, withholding, and Social Security obligations. (Process handled via AEAT/TGSS portals.)

How long does registration take?
With Cl@ve or a digital certificate, both the AEAT census filing and RETA enrolment can be completed online the same day, effective from the start date you indicate.

Can foreign nationals register as autónomos in Spain?

• EU/EEA/Swiss citizens: register for a NIE and, if staying >3 months, obtain the EU Registration Certificate (EX-18); then complete AEAT and TGSS steps.

• Non-EU citizens: you generally need the self-employment authorization (EX-07) first. Inclusion

Do autónomos need a separate business bank account?
Not legally required, but strongly recommended to keep clean books and support AEAT’s record-keeping standards. AEAT accepts electronic books if you preserve the files.

What happens if I stop working as an autónomo/a?
You must file baja with TGSS (RETA) and AEAT (census). Both can be done online: Importass for Social Security and Modelo 036/037 for AEAT.

Are there government incentives or reduced rates for new autónomos?
Yes. In 2025, eligible first-time autónomos can request the €80/month reduced rate for the first 12 months during their RETA enrolment.