If you are living in spain and wish to start your own business here, you need to register as self employed (autonomo) for income tax and social security reasons. many small businesses also prefer that their staff are autonomo too, as this effectively means that they are working without a contract and are therefore liable for paying all taxes and contributions themselves, and are working without the protected rights that a contracted employee would have.
You may already be registered for tax (for instance if have already purchased and sold a property here)or if you have had any other employment in Spain. Contact an assesor or gestor and give them your NIE number and they will check to see if you are on the tax office's ( Hacienda ) database. If you are, they can then proceed to register you as Autonomo online without the need for any further documentation.
Usually you will be required to have these copies certified (compulsada). Your local Ayuntamiento will often do this for free, if not a Notary will be able to do this for you at a modest charge.
The current rate is approximately 240 euros per month and after registration this will be debited automatically from your bank account at the end of each month.
There is optional state cover for work-related accidents and illness; the extra monthly contribution for this is roughly 25 euros.
Once you are registered, you or your Asesor must submit quarterly income tax returns and payments on account. This is usually done the 3rd week of jan, april, july & october, but your facturas need to be presented to him sooner to enable him to prepare and submit the tax return.
Your quarterly tax bill will then be calculated based on the iva that you have charged minus the iva that you can reclaim. Your assesor will then give you a slip which you need to pay by bank transfer at your local bank (usually before the 21st of the month) - Fines are levied for late payment!
If you are supplying goods or services which are subject to vat (called iva in spain), it is also necessary to file quarterly returns.
As of the 6th novermber 2010, changes to the social security system for autonomo workers allows the option of paying a voluntary 1.7% extra contributions (approx 15 euros per month) in order to have provision for a maximum 12 months unemployment benefit payments. The duration of time that payments will be made for will depend on the amount of time that contirbutions have previously been made, and a minimum qualifying period of 12 months contributions is in place.
Please click here if you wish to read about these changes to procedure.
Hi. What is the situation with maternity pay if you are self employed?
I am self employed do / can I get benefit if my business goes under ?
Thank you Ed, for your most helpful reply.
Catherine - All is not lost. Just because a patent or trade mark has been awarded does not mean it cannot be revoked. If you can prove your brand, and that you have been in business for sometime, you can contest the patent/trademark by contacting the Spanish Patent office and formally contest the brand. If they refuse to investigate fully, you can get in touch with the EU patent office. Spain has recently been forced to signup to a new EU wide patent law. In the law there is provision to contest any patents awarded, especially trademarks. Get a good patent lawyer, but also apply for a UK patent/trademark immediately. A UK patent is worth more than a Spanish one!
Claire : If you have been paying the optional supplement to give you unemployment cover, then yes, you can claim entitlement. If not, no. If you should decide you can wind up your Autonmo status and end your contributions, but your entitlement to Healthcare etc... will end after 6 months.
Hi...I have been autonomo for 2yrs 6 months but do not have enough work to carry on...can I claim any unemployment benefits if I stop paying autonimo?...I have just a small market stall business but am losing money every week.
I am receiving sickness benefit every week, and have to report to the doctor on a weekly basis to get the baja, sick note, but my solicitor said I should not pay my autonomo whilst I am off sick and receiving benefit, I am now very confused as below you have said I should continue to pay.
3) The length that you can make a claim for needs to be substantiated by a Doctor.
In the case of an Employee, you can claim for a maximum of 12 Months. This may be extended by a further 6 months if the Doctor feels that there is a strong chance a full recovery may be made within this period - otherwise you would be ruled as being `Permanently incapable of working´. I `expect´ that the rulings will be similar for Autonomos.
The article did not help at all, it explains quite a few things regarding unemployment benefit, but I really need to know for what length of time I will be paid sickness benefit.
I have contributed into the Spanish system now for 7 years, I have autonomo, I cannot work now due to needing two knee replacements, for how long will I be paid sickness benefit?
Ramon : In answer to your repeated question - We are NOT a Government agency, nor did you make any such application through us. Speak with the agency you made your application with.
Ramon : We are not associated or affiliated with the Spanish Authorities in any way and therefore unable to advise you of the status of your application.