{"id":4969,"date":"2021-05-25T00:12:07","date_gmt":"2021-05-25T00:12:07","guid":{"rendered":"https:\/\/emprendix.com\/?p=4969"},"modified":"2025-02-18T16:36:12","modified_gmt":"2025-02-18T16:36:12","slug":"how-to-become-self-employed-in-mallorca","status":"publish","type":"post","link":"https:\/\/emprendix.com\/en\/how-to-become-self-employed-in-mallorca\/","title":{"rendered":"How to become a self employed in Palma de Mallorca as an expat (aut\u00f3nomo)"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1310.4px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p>Many people think that becoming self-employed in Spain is a complex process, but the truth is quite different, and here we explain why. But that\u2019s not all\u2014this post will also guide you through the essential steps to <a href=\"https:\/\/emprendix.com\/en\/project-view\/register-as-a-self-employed-in-palma\/\">register as self-employed in Palma de Mallorca<\/a>, especially if you are an expatriate living in Spain. As an added bonus, you\u2019ll also find useful tips and important information about the taxes you\u2019ll need to pay while working here. So, welcome!<\/p>\n<p><a href=\"https:\/\/emprendix.com\/en\/project-view\/register-as-a-self-employed-in-palma\/\"><img decoding=\"async\" class=\"lazyload alignright wp-image-61959 size-fusion-400\" src=\"https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service-400x313.webp\" data-orig-src=\"https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service-400x313.webp\" alt=\"\" width=\"400\" height=\"313\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27400%27%20height%3D%27313%27%20viewBox%3D%270%200%20400%20313%27%3E%3Crect%20width%3D%27400%27%20height%3D%27313%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service-200x156.webp 200w, https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service-300x235.webp 300w, https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service-400x313.webp 400w, https:\/\/emprendix.com\/wp-content\/uploads\/2021\/05\/register-as-self-employed-in-palma-de-mallorca-accountants-in-palma-de-mallorca-service.webp 600w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/a><\/p>\n<p>If you need further details or personalized advice, feel free to contact our <a href=\"https:\/\/emprendix.com\/en\/\">accountants in Palma de Mallorca<\/a>.<\/p>\n<h2 id=\"what-does-aut\u00f3nomo-mean\"><strong>What does \u201caut\u00f3nomo\u201d mean?<\/strong><\/h2>\n<p>First we must understand the meaning behind this particular word. \u201cAut\u00f3nomo\u201d is a Spanish term that roughly translates as freelance or self-employed individual in English. Let\u2019s see an example so as to better understand it.<\/p>\n<p>If you want to come to Spain and become an English tutor, a common alternative, you will find yourself at a crossroads with two path options ahead of you: You may attempt your luck at the work market and try to find a job. This requires a work permit which can be very challenging to obtain. Or, you may try to become a freelance worker, a much more flexible alternative, and work on your own without the hustle of a contract or any of the rigorous documentation a contract entails. Can you see now what the approach of this article is?<\/p>\n<p>It can all be as easy and simple as registering, sending an invoice to the company or individual to whom you will offer your service, and that\u2019s it! You can be legally earning money in less time than you think.<\/p>\n<h2 id=\"when-should-i-register-as-an-aut\u00f3nomo\"><strong>When should I register as an aut\u00f3nomo?<\/strong><\/h2>\n<p>There are many ways to make revenues on you own, such as selling goods on Amazon or eBay. And You may think that there is no need, at least not for that , to\u00a0<a href=\"https:\/\/emprendix.com\/en\/project-view\/register-as-a-self-employed-in-palma\/\">register as self-employed in Palma de Mallorca<\/a>. But, you\u2019re wrong.<\/p>\n<p>There are no exceptions. Regardless of what is that you do, as long as you are providing a service in whatever niche market, you must register as an aut\u00f3nomo. So, this is for you whether you are an English teacher, you work in IT or speak at conferences.<\/p>\n<p>Whatever circumstance applies to your case, you will have to start paying taxes, and these are the rules to follow.<\/p>\n<h2 id=\"can-i-become-an-aut\u00f3nomo-without-the-hustle\"><strong>Can I become an aut\u00f3nomo without the hustle?<\/strong><\/h2>\n<p>As in any process, there are certain aspects you need to be aware of. As a matter of fact, being eligible to become self-employed in Spain is dependent on your country of origin.<\/p>\n<p>If you are an EU\/EEA\/Switzerland citizen, everything will be easier. You will have no trouble to enter the country, set up your company and\/or become self-employed quickly. Further, the process will be for you very straightforward and, surprisingly, free of all hustle.<\/p>\n<p>Things might, however, take a more complicate turn if you are not an EU national. The hurdles start, then, from the outset. To start with, you may be required a visa to enter Spain. Then, you must obtain a residence and work permit to permanently stay in the country. You will also need both an NIE number and a Spanish bank account.<\/p>\n<h2 id=\"what-are-my-options-autonomous-vs-company\"><strong>What are my options? Autonomous vs. Company.<\/strong><\/h2>\n<p>If you want to become a freelancer in Spain, you have two legal paths. Namely: create a company or become a freelancer. But which one suits me better? Is it worth becoming self-employed?<\/p>\n<p>The answer is highly variable and will depend mainly on your needs and resources.<\/p>\n<p>But, generally speaking, we assure you that becoming an aut\u00f3nomo is easier. These are some of the reasons why:<\/p>\n<ul>\n<li>The legal process is considerably more straightforward and involves less paperwork.<\/li>\n<li>\u00a1The tax compliance for a self-employed person is simpler.<\/li>\n<li>There is no minimum capital investment.<\/li>\n<\/ul>\n<p>In other words, if you want to avoid all the hustle and the stress, being an aut\u00f3nomo is the best option for you. However, If you think your income may exceed \u20ac6,000 per month, perhaps, the smart move, in this case, would be setting up a company. It might be more profitable and you will end up paying fewer taxes.<\/p>\n<h2 id=\"what-liabilities-can-i-have-as-a-freelancer-in-spain\"><strong>What liabilities can I have as a freelancer in Spain?<\/strong><\/h2>\n<p>Before delving into the matching requirements for self-employed workers, you must become aware of what your precise liabilities will be. We want ,thus, in this post, not only to assist you to be more prepared, but also to help you understand the reasons why it is important for you to register.<\/p>\n<p>In short, you need to fulfill two basic obligations if you are self-employed. These are:<\/p>\n<h3 id=\"social-security\">Social Security.<\/h3>\n<p>It is mandatory that you register and pay a monthly contribution to the Social Security to have assistance in the Spanish public system and receive a pension in the future. For that, you will have to pay a certain fixed fee, which will be charged directly to your bank account, on the last business day of the month.<\/p>\n<p>How high is the fee?<\/p>\n<p>At the time you read this article, the fee is \u20ac283 per month. But calm down and don\u2019t panic. There are applicable deductions and, in addition to that, the amount is monthly and gradually so as to adapt more easily and finally reach that figure of \u20ac280 fee. As a matter of fact, freelancers pay only \u20ac60 per month during their first year.<\/p>\n<p>On the other hand, Women under 32 or people over 65 will have additional tax allowances.<\/p>\n<h3 id=\"taxes-as-a-self-employed-worker\">Taxes as a self-employed worker.<\/h3>\n<p>The second obligation is to pay taxes. Yes, you cannot get away from that.<\/p>\n<p>However, you will only have to pay for two different taxes as a self-employed: VAT (\u201cIVA\u201d in Spanish) and Income Tax or IRPF.<\/p>\n<p>For all intents and purposes, Spain\u2019s fiscal year corresponds to the calendar year, i.e., from January to December. You must file quarterly tax returns, and those are due in January, April, July and October.<\/p>\n<p>Let\u2019s now review all the relevant information about self-employed taxes:<\/p>\n<ul>\n<li>You must include VAT tax on all invoices you send to your clients. VAT rate is 21% and the VAT return is filed on a quarterly basis. In order to properly complete VAT returns, you must first deduct the VAT paid for expenses like your internet connection or your housing, to the VAT you charged to your clients. Then, you must pay the Spanish Tax Office (Hacienda) the outstanding balance. in the event of negative balance, only at the end of the business year, you are entitled to claim the refund. The first three quarters the balance can only be adjusted against the following quarter calculation.<\/li>\n<li>You must pay income tax quarterly. This amounts to 20% of your net profit (the difference between your business income and the deduction of your business expenses). Then, the year after, between May and June, you will file your annual income tax return. By means of this annual return, the final tax rate is finally, in the end, determined. It may sound entangled and complicated, but it is not. If your final rate is higher, you will have to pay the outstanding balance, whereas if your final rate was lower, you will be entitled to a refund.<\/li>\n<\/ul>\n<p>Do you understand what your responsibilities are as an \u201caut\u00f3nomo\u201d? If so, now we can go over the steps you need to follow in order to register. As mentioned, it is pretty straightforward. You only have to register with the social security and tax agency to become a legal self-employed person.<\/p>\n<p>Bear in mind that we have commercial lawyers to help you understand the steps and guide you through the entire and tedious process. Email us for assistance!<\/p>\n<h2 id=\"how-to-become-self-employed-in-spain-know-the-five-steps\"><strong>How to become self-employed in Spain? Know the five steps.<\/strong><\/h2>\n<p>Now, we have finally reached the most awaited moment. We are going to review, alongside you, the five steps you must follow as an expat to register as a freelancer in Spain:<\/p>\n<p><strong>1. Obtain your work permit.<\/strong><\/p>\n<p>Do you remember the information about the country of origin? As mentioned above, you will need a work permit to work as a freelance in Spain, if you are a national from a country different form EU or EEA countries.<\/p>\n<p>If that case applies to you, then It is crucial to apply for the work permit from your home country, as traveling to Spain and starting the application process here can lead directly to a an unwanted denied application.<\/p>\n<p>In order to follow this recommendation, you must submit the required documentation at the Spanish consulate so as to obtain your visa in advance. Once you get your VISA, where required, you will be able to enter Spanish territory, obtain the residence permit, whenever possible, and continue with the process.<\/p>\n<p><strong>2. Get the NIE number.<\/strong><\/p>\n<p>Do you know what the NIE number is? It is the basic identification number for foreigners.<\/p>\n<p>You can request it when entering the country with your visa. This is essential in order to get your residence permit and\u00a0<a href=\"https:\/\/emprendix.com\/en\/project-view\/register-as-a-self-employed-in-palma\/\">register as a self-employed person<\/a>. The NIE number is used for almost all legal and bureaucratic procedures in Spain.<\/p>\n<p>In order to receive it, you just have to send the EX15 form, together with your passport, to the local Immigration Office. But do not forget to book an appointment in advance.<\/p>\n<p><strong>3. Tax register: IAE.<\/strong><\/p>\n<p>After the residence permit and the NIE number, the next thing in line is to register the start of your business activity with the tax authorities. Upon registration, you are entitled to start business operations, form the tax point of view, in Spain. This filing is known as the IAE registration. IAE stands for Tax on Economic Activities. However, it must be noted that no payment will be required for this tax as long as you remain below the revenue threshold of \u20ac1,000,000<\/p>\n<p>It is a simple process, one that only involves registering with the tax agency and which is carried out for informative purposes, so that the Tax Office acknowledges the start of your business activity. In other words, you will also be notifying them that you will start sending invoices and, therefore, that you will also have to pay income taxes.<\/p>\n<p>How to do it? It won\u2019t take you more than 15 minutes, and these are the steps:<\/p>\n<p>You need to make an appointment at any office of the Tax Agency, first.<\/p>\n<p>On the assigned day, you must go to the place and give information about the group number corresponding to your activity. Do not worry if you are not sure about it or have not checked it, as the official will help you find it.<\/p>\n<p>Then, you must complete form 036 or form 037. The agency official will tell you which one to use. Although most of the time it will be 037, since 036 is usually used for the creation of a company , although it has other purposes.<\/p>\n<p>For the appointment, be sure to carry with you the following documents\/ information:<\/p>\n<ul>\n<li>NIE number.<\/li>\n<li>Passport and copy of it.<\/li>\n<li>Spanish bank account number.<\/li>\n<\/ul>\n<p>Do you see how simple it is? You will be enrolled in the IAE in less time than you expect to and, from that moment, you will be able to start sending invoices and providing services to clients.<\/p>\n<p><strong>4. Register with social security.<\/strong><\/p>\n<p>After tax registration, you can legally start working as a freelance in Spain. But, th is not the end of the way, there is another important step to follow: register with social security. This is essential because it is what will allow you to enjoy the Spanish health system and receive a future pension. Benefits you will only have access to in exchange of a mandatory monthly fee payment.<\/p>\n<p>Upon IAE registration, you must then visit the Social Security offices and , once there, register under a special scheme created for freelancers called RETA (r\u00e9gimen especial para trabajadores aut\u00f3nomos).<\/p>\n<p>These are the documents to take with you:<\/p>\n<ul>\n<li>INE number.<\/li>\n<li>Passport and copy of it.<\/li>\n<li>Model 036 or 037, depending on your case.<\/li>\n<li>IRPF form that you obtained at the tax agency office.<\/li>\n<li>Residence registration document (padr\u00f3n).<\/li>\n<\/ul>\n<p><strong>5. Daily operations and tax returns.<\/strong><\/p>\n<p>And you\u2019re done! Now, it is time for you to enjoy your trip as a\u00a0<a href=\"https:\/\/emprendix.com\/en\/project-view\/register-as-a-self-employed-in-palma\/\">self-employed expat in Mallorca<\/a>\u00a0(Spain).<\/p>\n<p>If you\u2019ve made it here, that means that you\u2019ve finished all the tedious legal paperwork and you are fully prepared to start working. But unfortunately, not everything ends here. Remember that you are also due for tax returns for both VAT and income tax.<\/p>\n<p>From this point on, there are two further paths ahead:<\/p>\n<p>The first is spending a great deal of time learning everything you need to do in order to file your tax returns on your own. But, we do not recommend this option, as it is specially entangled for foreigners. It may take a long time, and, as freelance, you do not want to waste a minute of your day after these procedures. We are aware that you don\u2019t want to worry about taxes, but rather focus on your freelance role and be as productive as possible.<\/p>\n<p>For that reason, we advise you to follow this other path: to have an accountant do all the work for you. You just have to send them all your receipts and sent invoices, and the professional will manage everything on your behalf, so that you do not need to waste hours of precious work.<\/p>\n<p>Trust us. We will make your life so much easier and better!<\/p>\n<p>Here, we offer reliable tax and accounting compliance services both for your company and for your financial and self-employed activity. Do not hesitate to contact us to help you manage your taxes if you live in Mallorca.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Easy Steps to become a self-employed in Mallorca.<\/p>\n","protected":false},"author":1,"featured_media":61924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-4969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-set-up"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Become self-employed in Palma de Mallorca (aut\u00f3nomo)<\/title>\n<meta name=\"description\" content=\"You will learn about the essential steps to become self-employed in Palma de Mallorca if you are an expatriate living in Spanish territory.\" \/>\n<meta name=\"robots\" content=\"index, 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