Hello Masquette,

We are concerned that the amount of information you require might confuse you even more , and it will probably be better to contact us directly or make an appointment with a gestoria around you area to clarify.

In the meantime please read the different areas you will need to consider in order to became a self-employed worker in Spain.

In order to become a self-employed worker in Spain you will need the services of a gestor (similar to an accountant). They will register you with the Agencia Tributaria (Inland Revenue Office) as being self-employed and will do your quarterly and annual accounts. Make sure you choose a professional English speaking gestoria as you will be relying on them to calculate your IVA (VAT) and tax returns each quarter.

As a self-employed you will have to pay by direct debit your social security fees each month. This means that you are entitled to make use of the "national health" system and also receive a pensioners´ benefit when you retire. There are social security discounts and their amount can vary in relation to your age and special circumstances.

You will have to issue invoices for the services you render and you will have to keep proper records of them. If you are invoicing a company as a self-employed you will also have to include Impuesto sobre la Renta de las Personas F*sicas (IRPF).

As a self-employed you pay tax and your IVA (VAT) every quarter. Then, at the end of the fiscal year, that runs from January to December, you need to have your annual accounts done although they are not submitted until June of the following year. You are required to pay 20% tax on your income (after expenses have been taken into account) each quarter.

Note that the expenses that can be offset against your profit must be related to the business so housing costs ( mortages, rental fees ) cannot be included unless the business is run from your house. However, (petrol, maintenance, etc) for most jobs in Spain as a self employed individual and telephone bills, can only be deducted in a 50% of the expense as they assume a 50/50 split between your job in Spain and your personal life.

When invoicing a company you include a deduction of 15% IRPF which means that the company you invoice retains the 15% of the tax on your behalf and pays it at the end of the year. You then need to make up the additional 5% each quarter, however if more than the 75% of your invoicing are related to a company and they deduct the 15% IRPF you are not in the obligation to pay 20%. tax on your income mentioned earlier.

You must hand your invoices each quarter (payments in and out) to your gestoria or tax/fiscal advisor so that they can calculate your IVA bill and your tax bill. This is done each quarter and at the end of the year everything is totalized to find out whether you owe additional tax or are due a rebate.

I hope this information has been useful and please feel free to contact us via our website contact form should you wish to have more specific information.

Best Regards,