Autonomo - Nomadoro

The Spanish “autónomo” regime refers to the Special Regime for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos). When you register as an autónomo, you are legalizing your business activities for tax purposes and registering yourself for the social security regime in Spain.

What is the Special Regime for Self-Employed Workers?

When you start your professional journey, you need to fulfill several obligations, including paying taxes on your income to the Treasury (Hacienda) and contributing to Social Security to be eligible for benefits and help maintain the system¹. While employees are registered and contribute to the General Regime, self-employed workers do so in the Special Regime for Self-Employed Workers¹.

Who should register in this regime?

All individuals who regularly, personally, and directly carry out one or several economic activities for profit must register in this regime, provided that these activities are not subject to an employment contract by any company¹.

Do I even need to register with it as a Digital Nomad?

If you have committed or want to open an autonomo, then yes. In fact, half of the “opening of autonomo” is registration with social insurance. Separate registration is usually not required. You simply open autonomo via PAE/Xolo/Taxdown/hestor/whatever – this includes TGSS registration.

If for some reason you still need to register separately (in this case, you register with the tax office separately manually), then in your personal social insurance account you need to do alta en trabajo autonomo.

What taxes do digital Nomads pay in Spain?

There are three main taxes for digital nomad freelancers in Spain

Income tax (IRPF) that you pay on your earnings
Value added tax (IVA) that everybody pays on products and services
Social security (la cuota de autónomos). Technically not a tax, but an obligatory monthly payment for social security services

IRPF: Income tax and rates

Digital Nomads living and working in Spain have to pay income tax on all their income — whether payment comes from Spain or abroad.

Unlike value added tax and social security contributions, income tax for digital nomads in Spain fluctuates greatly depending on the region, marital status, and children.

Spain’s general IRPF rates vary from 19% to 47% in a progressive system, with regional taxes added on top. The tax brackets are as follows:

Up to €12,450: 19%
€12,450 — €20,200: 24%
€20,200 — €35,200: 30%
€35,200 — €60,000: 37%
€60,000 — €300,000: 45%
More than €300,000: 47%

Digital Nomads who receive 70% or more of their income from foreign clients are obliged to file tax returns in Spain every quarter to stay compliant. Think of it as an installment on your annual tax return.

What if I can’t pay my taxes?

If for whatever reason, you’re coming up short for VAT, income tax, and social security payments, you can ask for an extension, which pushes it back to a later date.

What are the benefits of registering as a self-employed worker?

Registering as a self-employed worker in Social Security and paying your quota will allow you to access the benefits covered by the System¹. These include medical leave for common illness and non-work-related accidents, medical leave for occupational disease or work accident, birth and care of a minor, risk during pregnancy and breastfeeding, permanent disability, widowhood and orphanhood, cessation of activity due to involuntary causes, and retirement¹.

How much does it cost?

The monthly contribution that a self-employed worker must pay to the Social Security system is determined by their estimated annual income³. This contribution is calculated based on a general table set annually in the General State Budget Law and limited by a minimum and maximum contribution base³.

Reduced Contribution Rate for the first 12 months

In Spain, the Special Regime for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos, or RETA) has a special provision for new self-employed workers in their first 12 months of activity – a reduced contribution rate. This is often referred to as the “flat rate” (tarifa plana), and it significantly reduces the monthly Social Security contributions for new self-employed workers.

What if my income changes?

If at the end of the year your annual income has been lower than what you had estimated, you can request a refund of contributions³. Conversely, if your income has been higher, you will need to regularize your situation by paying the difference

How to calculate my contribution?

The Spanish Social Security system provides a simulator tool that allows you to estimate your monthly contribution based on your expected net income³. This tool can be found on the official website of the General Treasury of Social Security.

Can I check my contributions?

Yes, you can check your monthly contribution receipts through the Electronic Office of Social Security. This service allows self-employed workers to consult the receipts of monthly settlements detailing the information related to Social Security contributions.

Sources

For more detailed information, you can consult the Practical Guide to Self-Employment and the official website of the Ministry of Labor and Social Economy. Please note that this is a general overview and the specifics may vary depending on your situation. It’s always a good idea to consult with a professional or the relevant government agency for advice tailored to your circumstances.

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