How to register as a self-employed person in Spain: Requirements, steps, and tips

While some legislative changes have been introduced to the system for 2025, the process continues to be focused on being taxpayer-friendly and efficient. Below is everything you need to know about it.

Is registering as self-employed really mandatory?

A few years ago, registering in the Special Regime for Self-Employed Workers (RETA) was only mandatory for workers who met these two characteristics:

• 1. Carrying out an activity on a regular basis
• 2. Earning from this activity approximately the Minimum Interprofessional Salary (SMI).

But since 2023, this has changed and the Real Income Contribution System has been implemented. In other words, your fee is calculated according to your activity's profits. And currently, Social Security has imposed that regardless of your profits, you must register.

Even if your monthly profits are below 670 euros, you will have to do it. This amount is precisely the lowest tier of the table set for self-employed with reduced income, and would correspond to a fee of 200 euros.

Receiving profits below this amount is not an excuse to avoid the process, but what is still maintained is the regularity condition. That is, if you carry out an activity regularly and personally, for which you receive profits, you must register as self-employed.

But what is understood as a regular activity?

What is regularity according to Social Security?

Social Security hasn't clearly defined what it means by a "regular activity", but it's understood to refer to the frequency with which you carry out said activity. The best example is in those activities for which you receive occasional payment, though so occasional that it cannot be defined as constant.

For example, if you're an expert in a specific topic, give a couple of talks throughout the year and receive payment for it, you're not meeting the regularity requirement. You would only have to declare VAT and income tax for these two talks.

However, if the talks are given every two months under an annual schedule, then the regularity requirement would be met. There is an established frequency, and most likely Social Security will require you to register as self-employed.

What are the procedures to register as self-employed in Spain?

For this, you will have to complete two procedures: register with RETA (Social Security), and register with the Tax Agency. In this precise order, it is very important. Both procedures are intended to fulfill their own functions.

• 1. Register with RETA (Social Security): This will serve to mark all your obligations with Social Security, and define what your monthly fee payment will be. Although it will also represent benefits for you. With this contribution, you will have the right to receive benefits such as:
  • - Work disability
  • - Illnesses
  • - Maternity or Paternity
  • - Retirement
  • - Among others
• 2. Register with the Tax Agency (IAE): Registering in the Economic Activities Tax (IAE) is mandatory for any business. You will have to do it with the activity you will develop and depending on this you will probably have to pay, as self-employed, your quarterly VAT and your Annual Income Tax.
• 3. Request Opening License: There is a third procedure, but this is only required for those self-employed who need a physical location to develop their commercial activity. For this, they will need to request an Opening License.

How can I register with Social Security?

The first step you must take to register as self-employed should be to register with Social Security, or coincide with the Tax Agency registration. Why? Registering first with the Tax Agency would show you as a self-employed person who can be denied certain benefits, such as, for example, the flat rate of 80 euros.

With this in mind, you will have to register with RETA first. Which will become your guide from now on. You can do this by filling out the application in Form TA 0521. This form will serve you both to register and unregister or any other variation indicated by RETA.

It's not a complicated form to fill out. Don't be fooled by the large number of boxes you can see at first glance. Only certain basic personal data and information about your activity are requested. Although, the update of the Real Income Contribution System will also request your annual income forecast.

A recommendation is that before filling out the form, have data such as:

• - Your National Classification of Economic Activities (CNAE) code
• - The Economic Activities Tax Code (IAE)
• - The Tax Administration to which you belong
• - The start date and address of the activity
• - Estimation of your annual net income
• - A bank account to direct debit the fee in case of a refund
• - Other requirements can be confirmed here

How to calculate the monthly average of my income?

To follow the correct order according to Social Security, you will have to register before starting your business, however, it leads to another dilemma and that is: how can I know the income that a business I haven't started yet will have?

It's impossible to know how much you will bill, which is why it's indicated that it's only a "forecast". Still, based on this initial estimate is how the fees you will have to pay month by month will be determined. But most likely you will be entitled to the Flat Rate of 80 euros. There is also a Social Security fee simulator that will allow you to calculate this income.

To use it, you will have to select an estimated income, then you will have the fee automatically. Another recommendation is that, if you're starting out, select a lower income level, because if you do, the only thing that can happen is that your business generates more money than you expect. You will pay it to Social Security later in the regularization.

This income forecast is for when you stop paying your flat rate, since at the beginning you may be entitled to a bonus.

For those who have recently registered as self-employed and haven't registered with RETA in the previous two years, they have the right to the flat rate and will only pay 80 euros per month for the first year. As a curious fact, the bonus could cover you for two years if you bill below the Minimum Interprofessional Salary (SMI).

How can I register with the Tax Agency?

Registering with the Tax Agency will be the next step. You must register what your economic activity is in the tax system. For this, you will have to submit Forms 036 or the simplified version 037, according to your needs. In these basic forms, you will inform about the data of the commercial activity you develop.

You can register through the Electronic Tax Agency Office (AET), as long as you have the electronic certificate or PIN key. Just fill in the data about your tax life. Keep in mind that all self-employed are required to declare VAT, except for certain professionals such as doctors, physiotherapists, and teachers who are exempt.

When indicating what your profession is, you will have to select the IAE heading of your business. That is, the code that identifies it and indicates the taxes that are subject to it. If you have doubts about this topic, enter the heading searcher of the Tax Agency.

How can I request an opening license?

The third step, which is optional and will depend on whether you need a physical location to manage your business, would be to request an opening license. This is a procedure that you do directly with the city council of your locality.

You will have to comply with the legal requirements they request, however, these requirements vary greatly depending on where you live. There are sectors where the application for this license can take months and be more complex than in other places.

The best option will always be to contact the direct phone number of the corresponding city council to request more information.

How much does it cost to register as self-employed?

The last question and one of the most concerning for its answer is this, the price it costs to register as self-employed. The truth is that this is a process that has no costs when done on your own.

They are free processes where the use of a management service is totally optional if you want to save time and not fill out forms.

After registering, you will have to face some payments, the most important being your fee. If you meet all the requirements to enjoy the flat rate, you will have to pay 80 euros per month. Although if your contribution bracket corresponds to one of higher income, between 200 and 500 euros per month.