Starting out as a freelancer is the dream of many people in Spain. The idea of being your own boss, setting your own hours and working on something you are truly passionate about is very attractive.
However, behind this apparent freedom hides a less brilliant reality: costs. And, beyond the illusion of entrepreneurship, it is essential to understand the financial responsibilities that being self-employed entails.
In this article, we explore the expenses related to being self-employed in Spain, including initial and recurring costs. If you are thinking about taking the leap, this article will give you a clear and realistic vision so that you can plan your future successfully.
Taking the first step to becoming self-employed in Spain is exciting, but it can also be a little intimidating if you are not familiar with the necessary administrative procedures.
Although technically the registration process is free, the reality is that it is not always easy, especially if it is your first time managing this type of procedure.
The process begins with two essential steps:
- Registration in the treasury: You must present form 036 or 037, which allows you to declare the economic activity that you will carry out. This procedure defines important aspects such as the taxes that you will have to pay.
- Registration in the RETA: This step involves registering in the Special Regime for Self-Employed Workers (RETA) of social security. Here you must choose your contribution base, which will affect both your monthly payment and your future benefits.
Although these procedures are free of charge, it is essential to do them correctly to avoid penalties. An error in the declaration, for example, can complicate your tax obligations and cause long-term problems.
If you do not feel confident or simply prefer to delegate these tasks, hiring an agency can be an excellent option. For a cost that ranges between €60 and €100, these professionals will take care of carrying out all the procedures for you.
Although it represents an initial expense, many freelancers consider that the peace of mind and time savings offered by these services more than justify the investment.
If you plan to incorporate a company, the startup costs are significantly higher. In addition to the standard procedures, you will have to cover additional expenses, such as:
- Notary and registrar fees: These costs can exceed €600, depending on the complexity of the company.
- Minimum share capital: Some corporate forms require initial capital, which can vary from a few hundred to thousands of euros.
- Possible legal services: If you need legal advice, you must also add a lawyer’s fees.
These additional costs make starting as a corporate self-employed person more complex, but it is a necessary investment if you require this type of structure.
¿How much does the self-employed fee cost?? The self-employed fee is one of the most relevant expenses. Starting in 2023, this amount is calculated based on your actual income, which is a significant change from the previous system.
With the new system, monthly payments are determined based on the net income you declare. Here’s a basic breakdown:
- Income less than €670 per month: Minimum fee of €200.
- Income between €1,000 and €2,000 per month: Approximate fees from €294 to €400.
- Income greater than €6,000 per month: Maximum fee of €590.
For example, if your monthly net income is €1,500, your fee will be around €375 €. This system seeks to be fairer, since those who earn less pay lower fees.
If you are starting out as a freelancer, you can take advantage of the full rate. During the first year of activity, you will pay only €80 per month. Furthermore, if your income does not exceed the minimum interprofessional wage (SMI), you can enjoy this reduced quota for a second year. It’s an excellent opportunity to reduce fixed expenses while your business takes off.
Selecting the right listing basis is crucial. If your income is low, you can opt for the minimum base to reduce costs. However, as your business grows, consider increasing your base to improve your social benefits, such as pension or temporary disability coverage.
