Starting a business as a freelancer is an exciting challenge, but it also means dealing with paperwork, procedures, and decisions that can feel overwhelming at first. From our tax consultancy in Palma de Mallorca, we help dozens of new freelancers every year take their first steps with confidence. If you’re thinking about registering as self-employed in Palma de Mallorca, these key tips will help you start your activity safely and smoothly.

1. Get informed and plan your registration as a freelancer

Before starting, it’s essential to correctly complete the initial registration steps. You must register with the Tax Office (form 036 or 037) and with Social Security (form TA.0521). Additionally, some activities require local licenses or sector-specific registrations. Proper planning helps avoid mistakes, delays, and penalties.

2. Take advantage of the flat-rate contribution

If you register as self-employed for the first time, you can benefit from the flat-rate plan: you’ll only pay €80 per month to Social Security for the first two years. This is a great way to reduce initial costs.

3. Understand your tax and accounting obligations

As a freelancer, you must submit quarterly and annual tax returns (VAT, income tax, and others depending on your activity). It’s important to know which forms to file and when. Keeping your accounting in order and saving all invoices and receipts is key to avoiding fines and issues with the Tax Office.

4. Choose a dedicated business bank account

Using a specific bank account for your activity helps separate personal and business finances. Many banks offer accounts for freelancers with no fees and perks like free cards or bonuses for direct debits.

5. Freelancer or company? Assess your options

Depending on your income, type of business, and level of responsibility, it might be more beneficial to create a Limited Company (SL). A professional advisor can help you choose the best option from the beginning.

6. Surround yourself with professionals

Working with a consultancy specialized in freelancers allows you to focus on your business while experts handle the tax, accounting, and labor aspects. Besides avoiding mistakes, you’ll have support for any legal updates or specific needs.

7. Stay up to date with legal changes

Tax and labor regulations change frequently. A good advisor will keep you informed about anything that might affect your activity, from contribution updates to new aid or deductions.

8. Take care of your social protection

Social Security covers the basics, but as a freelancer, you can enhance your protection with private insurance (sick leave, accidents, retirement, etc.). It’s advisable to explore your options and choose the coverage that best suits your profile.

Common Mistakes You Should Avoid

New freelancers often make mistakes that can result in fines or financial losses. These are the most common:

• Not coordinating registrations properly: Registering with the Tax Office before (or not on the same day as) Social Security can lead to penalties.
• Choosing the wrong IAE code: It’s crucial to select the correct tax code to avoid issues with the Tax Agency.
• Deducting expenses before registration: You can only deduct invoices issued after your official registration.
• Missing out on aid and bonuses: Not learning about the flat-rate plan, unemployment capitalisation, or subsidies may mean missing non-retroactive opportunities.
• Being unaware of your tax obligations: Filing forms late leads to fines.
• Not separating bank accounts: Using one account for everything complicates management and can lead to tax declaration errors.
• Poor financial planning: Setting prices without considering all costs can jeopardize your business viability.
• Skipping professional advice: Not hiring a tax advisor can be costly in the long run.
• Ignoring sector-specific legal requirements: Each activity may have specific regulations that must be followed.
• Neglecting marketing: Relying only on word-of-mouth limits growth and client acquisition.

Ready to take the leap into self-employment?

At our tax consultancy in Palma de Mallorca, we support you from your first registration step to full management of your freelance activity. We offer personalized advice to help you avoid mistakes, access all available aid, and launch your business with full guarantees.

Contact us and take your first step toward freelance success with confidence.