Question
Can someone share what it’s been like to be living as an Autónomo in Spain?
How are taxes paid on a monthly/yearly basis? How much?
How does the Spanish government determine the rate?
Answers
These are the answers of some Facebook group members:
”I’m not autónomo in Spain, but I’ve heard of people having to pay a monthly fee of 50€ for the first year (maybe two)… but it gradually increases to I think 250-300€/month. Hopefully, someone with more experience can chime in as I’m also interested to know”
”It’s 80€ now, a lot changed for 2023”
”Things have changed a lot this year regarding payments. One thing that’s been helpful for me is finding clients outside of Spain that can pay more. This doesn’t work for every industry, but for the work I do know I can charge clients from the US and Northern Europe more than I could a Spanish one for the same service. That helps offset the taxes and monthly payments a bit”
”I’m not autonomo, but know a good few. The problem I keep seeing is that freelancers in Spain only bill out something equivalent to what a salary would be in a similar permanent job. They aren’t adding taxes, social security, or the general ‘cost of doing business’ to their fees. And because that’s the status quo, if they did bump fees to cover these, they’d price themselves out of the market”
”I think it’s a bit better for ex-pats but you’re right that their billing rates are too low to be comparatively lucrative to self-employment in the US”
”Everything changed significantly in January of this year. The current base rate for an autónomo starting out in Spain is 80€ a month paid to Social Security every month directly from your bank account. You will then file Modelo 130 quarterly and pay 20% of your net income minus any retention that has been paid by your clients as estimated income tax. In April you will file you tax return for the year and at that time you will either owe more tax if you did not pay enough or get a refund if you have overpaid”
”Your autonomo payments will give you healthcare and it will be much less than your healthcare bill in the USA”
According to Spainguru Facebook group members, living as an “autónomo” in Spain has its challenges. The current monthly fee in 2023 is around €80, but it is only at the beginning. Later it goes over 200€. Freelancers often struggle to set their fees, as they typically charge rates comparable to permanent jobs without considering taxes and business costs. Some find success by targeting international clients who pay more. Taxes are paid quarterly, around 20% of net income, with an annual tax return filed from April to June. Despite the challenges, being an autónomo in Spain grants you access, for example to cheaper healthcare services, compared to the US.
