If you are an entrepreneur and want to start working on your own, know that the important thing is not just to make the decision. To work on your own, you will have to make some statements and notifications that come with some important documents. Here we present the requirements to register as a self-employed person in Spain.
Although the old continent seems to have everything, there are many projects waiting to be put on the market, innovative spaces and also specialists committed to self-management. If this is your case, it is important to put your ideas down, to accommodate them within a practical planning of how the path to go for this work autonomy is.
It is necessary to submit the application to various entities, such as: Treasury, City Council of your city, Social Security, Work Organizations and online registration of self-employed with Unique Electronic Document through the Entrepreneur Service Desk.
Requirements to register as a freelancer
The self-employment registration process is relatively easy to process. However, take into account that it is still necessary to carry out an administrative process that in many cases suffers from the typical delays of bureaucratic systems.
The minimum step to be performed has to do with enrollment in the Treasury and Social Security. If you want to open a store, you will also have to process an opening license at the City Hall. If your plan is to do restorations or renovations, you will also need a building permit. If hiring workers is part of your plans, this constitutes a series of procedures in addition to registering as a self-employed person.
This is what you need to complete the process:
- Copy of DNI
- Social Security number
- Bank account number: it is preferable that you have an account that you will use exclusively for your professional activity.
When making this decision, many considerations must be taken into account, in addition to the documents listed above.
For example, depending on your business activity, you will be registered under one title or another when you sign up. This is known as IAE (Tax on Economic Activities) with respect to Finance, while the code of its activity in Social Security will be the CNAE (National Code of Economic Activities).
The start date for registering your business activity. He is very aware of that! For your Social Security registration to be considered on time, it must be prior to the start date of your activity.
The most important allowance, or to which most new self-employed workers are welcome, is the so-called 50 euro flat rate. If you have already signed up as a self-employed person receiving the flat rate bonus, you will not be able to benefit from this assistance before three years.
Steps to register as a freelancer
The steps to follow are several that are somehow interconnected, it is necessary that you process everything in Organs competent bodies.
Before performing any procedure, you must register with the Treasury. You have to submit the census statement (models 036 and 037) In it you will notify your personal data, the activity you will engage in, the location of your business and the taxes you will have to pay.
Tax on Economic Activities
When declaring the activity you will have to select one of the sections of the Tax on Economic Activities (IAE), regulated in the Royal Legislative Decree 1175/1990. There are extensive lists of commercial and professional activities. The normal will be to be exempt from the payment of the IAE, since it should only be paid in case of billing above one million euros per year.
Within 60 days prior to the start of the activity, you must enroll in the Special Social Worker Scheme (RETA) of Social Security. For that you will have to present the model TA0521 in any of the Social Security administrations with a photocopy of the DNI or equivalent and a photocopy of the registration with the Treasury.
In the case of a property community, it is necessary to provide a copy of the contract signed between the community partners and, if you register as a company partner, original and a copy of the company’s incorporation document.
Authorization by the City Council
The opening license It is an authorization from the City Council to open a place where an economic activity will be developed. The cost of the opening license is calculated for each location taking into account three factors: commercial relevance of the street, size of the location and type of activity.
What does it mean to be autonomous?
Being autonomous means being the natural person who regularly, directly and personally pursues an economic activity for profit, without being subject to an employment contract. Even with time, use that contribution to employ other people.
Being autonomous in the Treasury means that your company, its facilities or any project you undertake is registered and registered with this body. As you can see, they will ask for personal information like your identity, the activity you do and other things. This document is important and is a basic prerequisite that will be requested everywhere to confirm the legality of your business. Bank accounts are usually required to be opened.
Many people tend to register as self-employed, as it is the procedure that will help you complete subsequent steps. However, they often ignore the next step, signing up for social security, since before that body you will have to pay some money, as a kind of tax.
In Social Security
Registration with Social Security implies that, since you have no employer, you will pay the tax or fee expenses proposed by Social Security. This money will be paid to you in your old age with free medical services available to all Spanish citizens.
As we discussed earlier, many skip this step. This should not cause any major problems if your earnings are low, ie less than 500 euros. On the contrary, if your earnings are greater, you can be in big trouble if you do not report your earnings and the social security commission associated with those earnings.
Because you are self-employed, you have to pay a monthly fee regardless of how much you earn from your venture. It doesn’t matter if you win € 150 or € 5,000, you must pay. Today there is a fixed fee for freelancers for new registrations and costs around € 54 per month for the first 6 months, increasing over the following months in 6-month installments until you pay the average fee of € 265 per month.
Don’t let your digital certificate pass
Don’t forget to complete this step, it is extremely important!
A legal certificate is a document previously issued by a public and official body. With it you can perform procedures and operations in a digital way since this certificate identifies and verifies the identity of the owner.
This document has no cost. This certificate, in a nutshell, attests to the identity of the owner.
With it you can perform the following procedures:
- Registration, cancellation and modifications at the Tax Agency
- High, low on the STRAIGHT
- Presentation of taxes such as VAT and personal income tax.
Benefits of being self-employed
It is true that being autonomous brings many benefits, we list some of them:
- Do you work when you want: If you are a person who does not like to get up early, being autonomous you will be lucky to be able to distribute your time the way you want. You can take a day off when you need to and adapt your schedule to your personal productivity. Some choose to work only in the morning or just at night. The truth is that the hard working hours for you are over.
- Be your own boss: Being autonomous, this gives you the freedom to be your own boss. You are in charge and can decide what to do, how to do it and when. You will also avoid annoying coworkers, as, as a freelance, you can decide who you want to work with and who you don’t.
- You can make more money: Now you will not be subject to the hours served, but to the productivity of your enterprise. Good ideas and planned projects yield a lot. Have a good creative process and the money will come to you! The economic potential will always be greater than that of an ordinary employee. Open your mind and think about how to run your business.
- You’ll work on what you’ve always dreamed of: No more jobs you don’t like and they end up making you unhappy. When you register as a freelancer, you decide how to invest your resources in a project that you are passionate about, that catches the public’s attention and that is innovative. You will be able to fulfill your goals and objectives and fulfill your dreams with hard work.
- You will learn to manage your life, your business and your money: If you don’t know much about project management, meet with the consultants. This opportunity will give you the tools to have good resource management and thus increase profits. You will feel that you are in control of your life and your income and that will make you feel very good.
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