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Becoming autónomo or setting up a company in Spain

To work for yourself, there are two main options: registering as autónomo (self-employed) or setting up a limited company (SL). The right choice depends on your income and the risks of your business.

Registering as autónomo

• Registration with the tax office (Hacienda) using form 036.
• Registration with Social Security, in the self-employed scheme (RETA).
• Contributions depend on your real income. New autónomos can benefit from a flat rate of €80 a month in the first year, under certain conditions.

Setting up an SL

• Company name certificate from the Central Mercantile Register.
• Bank account and share capital (since 2022, €1 is enough, with certain conditions).
• Deed of incorporation at the notary and registration at the Mercantile Register.
• Company tax number (NIF) and registration with the tax office.

Autónomo or SL?

Being autónomo is simpler and cheaper to run, but you are liable with your personal assets. An SL protects your assets and can pay less tax when profits are high (25% corporate tax, with reduced rates for new and small companies), but it comes with more accounting obligations.

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