What Is a Sole Trader in Spain?
In Spain, a sole trader is known as an autónomo. It’s the most common structure for freelancers, self-employed individuals, and small business owners.
You operate under your own name or brand, are personally liable for business debts, and must comply with local tax and social security obligations.
✅ Advantages of Being an Autónomo
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Quick setup and low startup costs
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No minimum capital required
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Ideal for freelancers, remote workers, and solo professionals
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Eligible for flat-rate social security contributions in the first year
📌 Common autónomo professions: consultants, designers, IT specialists, translators, tradespeople, yoga instructors
📝 Steps to Register as a Sole Trader in Spain
1️⃣ Get a Spanish NIE
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Required for all legal and tax matters
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Apply through the immigration office or consulate
2️⃣ Register with the Tax Agency (Agencia Tributaria)
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Submit Modelo 036 or 037
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Declare your business activity (IAE code)
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Choose VAT and income tax payment schedules
3️⃣ Register with Social Security (Seguridad Social)
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Submit TA0521 form
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Pay monthly autónomo contributions (flat rate available for first 12 months)
🩺 Your contribution includes health coverage and pension rights.
4️⃣ Keep Business Records
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Issue invoices with required VAT and client info
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Track expenses and submit quarterly taxes
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Annual tax declaration required (Modelo 100)
💰 Tax Obligations as a Sole Trader
| Tax Type | Details |
|---|---|
| IRPF | Personal income tax (up to ~47%) |
| VAT (IVA) | 21% standard rate (varies by sector) |
| Quarterly Returns | Income tax (Modelo 130) and VAT (Modelo 303) |
| Annual Returns | Income (Modelo 100) and VAT summary (Modelo 390) |
📊 Accurate accounting is essential to avoid penalties.
💼 Autónomo vs. SL (Limited Company)
| Feature | Autónomo | Sociedad Limitada (SL) |
|---|---|---|
| Setup Time | 1–5 days | 2–4 weeks |
| Liability | Personal | Limited to capital |
| Social Security | Flat rate available | Higher contributions |
| Tax | Personal income tax | Corporate tax (25%) |
🧠 If you’re planning to grow or hire employees, an SL might be more suitable.
📌 Special Cases
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Autónomo Colaborador: For spouses working in the business
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Digital Nomads & Remote Workers: May benefit from the Digital Nomad Visa while registered as autónomos
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EU Nationals: Easier setup with valid ID and NIE
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Non-EU Nationals: May require residency or work permits
📍 Real-World Example
Case: A Canadian marketing consultant moved to Barcelona and registered as an autónomo. We helped her secure her NIE, register with the Tax Agency and Social Security, and apply for the flat-rate social contribution—allowing her to start work in less than a week.
🌍 How Borderless Lawyers Can Help
We guide you through every step of setting up as a sole trader in Spain:
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✅ NIE and tax registration
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✅ Business activity classification (IAE)
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✅ Social security enrolment
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✅ Ongoing accounting and tax filing
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✅ Support in English and Spanish
🚀 Start Working as a Sole Trader in Spain—With Legal Peace of Mind
Avoid red tape and costly mistakes. Let Borderless Lawyers handle your registration and compliance, so you can focus on growing your business.