These are the advantages at one glance
- High quality of life
- Affordable cost of living
- Mild climate
- High internationality
- Access to the European market
- Good infrastructure
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- Individual and comprehensive insurance protection
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Becoming a freelancer, self-employed person or “Autonómo” in Spanish is free of charge. However, there are small differences in registering as a freelancer between residents of the EU / Switzerland and residents outside the EU. As an EU resident or citizen of Switzerland, for example, you do not need a work visa before registering. Residents outside the EU need a work visa before entering the country.
Residents form the EU or Switzerland
If you are an EU citizen or Swiss resident and want to work as a freelancer in Spain, there are a few important legal and administrative steps to follow. First of all, registration as a resident is required, for which a NIE (Número de Identification de Extranjero), an identification number for foreigners, is needed.
Unfortunately, only part of the application process can be completed online. Therefore, it makes more sense to apply for the NIE in person. In Spain, of course, this can be done directly at the National Police (Comisaría de Policía) or an immigration office (Oficina de Extranjeros). You will need a valid passport, two passport photos, proof of the reason for the application and a completed EX-15 form, which you can find online and fill out in advance.
The NIE can also be applied for at a Spanish consulate in your home country. The process is the same as in Spain, but it takes much more time.
Registration should be started as soon as you decide you want to work as a freelancer, but no later than 90 days after entering Spain.
The NIE serves freelancers in Spain for the following things:
- Open a bank account
- Work in Spain
- Buy or rent real estate
- Buy and register a car
- Start a business
- Pay taxes
- Take out insurance
- Make use of public services
- Register a marriage
- Claiming social security
- Transfer or receive large sums of money
- Submitting applications to the government
To be self-employed, you must register as an autónomo and pay regular social security contributions. Income tax (IRPF) and VAT (IVA) are relevant for tax purposes, whereby proper accounting and compliance with legal regulations are essential. In order to pay taxes, you must also register as an Autónomo with the Agencia Tributaria, the Spanish tax authority.
It is also advisable to open a Spanish bank account and take out professional indemnity insurance if necessary. A tax advisor can help to ensure that all requirements are met correctly. A good knowledge of Spanish is also an advantage, as most applications to the authorities are processed in Spanish.
Non-EU residents
Non-EU citizens or citizens from outside Switzerland can only apply for a work visa in person at a Spanish consulate. The fees for the visa can also be paid there. These amount to between 60 and 170 Euros, depending on the country of origin. The work visa is valid for one year and can then be extended each time for 2 years.
To apply for a work visa, you need the following:
- you must be at least 18 years old
- a certificate of criminal record
- a health check
- proof of insurance for health insurance companies
- proof of education and work permit
- proof of capital
- Passport incl. copy
- business plan
- proof of investment
- Form EX-07 (on the consulate website, completed, including form 790 - 052 and - 062)
After successful registration, the residence permit can be collected within 30 days of arrival in Spain.
Becoming Autónomo is then the same process as for EU residents (see above).
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Tax Obligations
Of course, you also have to pay taxes in Spain if you work there. As a freelancer in Spain, there are several types of tax to consider.
Income from another country or a residence there requires double taxation to be taken into account. It is important to check whether a double taxation agreement exists. This will help you avoid double taxation.
In addition, local taxes may apply depending on the business location and the specific activity. It is advisable to consult a tax advisor to ensure that all tax obligations are fulfilled correctly and that possible tax benefits or tax relief are used to the full.
The most common and sensible legal form for founding a company is the Sociedad de Responsabilidad Limitada, the S. L., comparable to a German GmbH. However, in contrast to its German counterpart, a founding capital of only approx. 3000 euros is required here.
In addition to the requirement for founding capital, there are also costs for founding the company of approx. 1500 euros plus approx. 500 euros in notary fees. This does not make setting up a company in Spain exactly cheap, but it is still cheaper than in some other EU countries.
Other common company forms are:
- Sole proprietor / freelancer – „Empresario Individual“ / „Autónomo“: TThere is no minimum capital requirement here and incorporation is very simple. As described above, all you need to do is apply for a tax identification number and register with the tax authorities as an autónomo.
- Partnership or BGB company - “Sociedad Civil”: In this form of company, two or more partners join forces. No minimum capital is required here either, but the merger must be officially recorded in a contract.
- The Spanish public limited company - “Sociedad Anonima” (S.A) The most common form for larger companies. In this form of company, the company is a legal entity and the shareholders are only liable to the extent of their contributions. The minimum capital here is 60,000 Euros.
Opening a Spanish bank account
A Spanish bank account is not necessary to work as a freelancer in Spain. It does, however, make many things easier, such as paying bills or social security contributions.
To open a bank account as a foreigner in Spain, you should start by choosing a suitable Spanish bank such as Banco Santander, BBVA, CaixaBank or Banco Sabadell. Each bank offers different account models, from simple giro accounts to special offers for foreigners.
Some documents are required for the opening:
- The NIE number (required for financial transactions in Spain)
- a valid passport or identity card
- proof of residence (such as a utility bill or registration certificate)
- possibly a proof of income, especially if the bank requires one
After selecting a branch of the chosen bank or starting the process online, the submitted documents are checked by a bank employee and the account is opened. The appropriate account type can be selected according to individual requirements. Once the account has been successfully opened, it is usually activated immediately. A debit card and access to online banking are provided so that the account can be managed conveniently. Some banks also offer accounts without fees, especially for certain age groups or if certain conditions are met.
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Professional Indemnity Insurance through exali covers precisely these risks reliably and worldwide. The only requirement for this is a place of business in the European Union. As a freelancer in Spain, you can therefore have all your professional risks insured without any problems! The experts from exali's customer service team will provide you with personal support in choosing the perfect cover for your company.
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