Self‑employed in Spain (for non‑residents)
Becoming self‑employed in Spain is a practical route for consultants, creatives, and remote professionals who want control over pricing and invoicing while remaining compliant. In this expanded walk‑through we cover registrations in the right order, VAT mechanics for typical services, the income‑tax and Social Security interplay, defensible deductions, pricing and cash‑flow tactics, and a real‑world compliance calendar. With these tools, operating self‑employed in Spain feels predictable and professional from day one.
Jacob Salama
9/25/20252 min read
Registration roadmap (and why order matters)
NIE: obtain your foreigner ID number so the Tax Agency and Social Security can process your filings; use a power of attorney if you cannot appear in person.
Tax census (036/037): choose the IAE activity that best fits what you actually do, indicate your VAT status (subject, exempt, or reverse‑charge contexts), and register for withholdings if you will pay employees or certain professionals.
Social Security (RETA): enroll from the same effective date as the tax census to avoid a gap in coverage or a mismatch that can generate arrears.
Optional: open a dedicated business bank account and obtain professional liability insurance; these two simple steps dramatically improve audit outcomes and client confidence.
VAT mechanics for typical services (with evidence)
Domestic B2C services are generally subject to Spanish VAT at the applicable rate. EU B2B services often fall under reverse‑charge rules—your invoice shows no VAT but must include your client’s valid VAT ID and the legal reference. For non‑EU clients, many services are outside the scope of Spanish VAT when used and enjoyed abroad. Save VIES validation screenshots, signed contracts stating the customer’s location and use, and delivery logs (for digital services). This evidence is the backbone of self‑employed in Spain VAT defensibility.
Income tax and installments (avoid surprises)
If resident, you will make quarterly payments on account and file an annual return on worldwide income, offset by legitimate expenses. If non‑resident with Spanish‑source business income, you file under the Non‑Resident regime. Keep a conservative, consistent approach to deductions and ensure every expense has an invoice in your name and a traceable payment method. Accounting software that reconciles your bank feed monthly saves hours and prevents forgotten invoices.
What to deduct (and what not to)
Deduct hardware and software used to produce income, essential subscriptions, telecoms, travel strictly linked to projects, professional services, marketing, and—under strict conditions—part of home‑office costs. Avoid claiming personal expenses, round‑number allocations, or ambiguous mixed‑use items without clear logs; these attract adjustments and weaken your credibility.
Pricing and cash‑flow (build in taxes and contributions)
Set prices that reflect not only your time and expertise but also VAT timing and Social Security contributions. As a rule of thumb, reserve 25–35% of gross receipts for taxes/contributions during your first year. Invoice promptly, set payment terms that fit your clients’ cycles, and consider small discounts for early payment to protect cash flow.
Compliance calendar (make it boring)
Schedule quarterly VAT and income‑tax installments, annual VAT summaries where relevant, and any informative returns. Add reminders one week in advance to gather documents calmly. The goal is to make self‑employed in Spain compliance routine rather than reactive.
Clear call to action
Thinking about going self‑employed in Spain? Get a tailored setup plan and cost forecast. Website: our contact page • Email: taxlegalspain@gmail.com • Tel: +34 644121802 . Submit the form at our contact page for a free first review.