Autonomo in simple terms

Autónomo is self employed. Start by asking a gestoria (accounts assistant) what you need. They will organise the tax man, social security, business category registration and any other paperwork. Chose a gestoria who has a member of the Colegio de Gestores. They are properly qualified and have access to the annual tax bulletins and system changes. It’s not a requirement to use a gestoria but will save you time learning the Spanish tax regulations and forms.

Your monthly Autónomo costs will be.
Social security 300€ (theres a scheme to start at 60€ and proceed to full payments over a few years)
Accountant 70€
Costs of running your business xxx€

After you have paid the costs you start to earn money for yourself.

Tax is paid quarterly about 20% of your profits.
You can claim as expenses Social security, purchase costs of equipment, materials etc. The tax you pay as Autónomo is included in your personal tax return. If you have overpaid theres a refund.

IVA is paid quarterly plus or minus depending on what you are doing.
When you make a sale you include/add 21% IVA
When you make a purchase you claim back 21% IVA

Ie: item sold at 1,000€
1,000€ + 21% = 1,210€ or
826.45 + 21% (173.55) = 1,000€
The IVA is given to the VAT man

Purchase a computer at 500€
413.22 + 21% (86.78) = 500€
The 86.78 is given back from the VAT man

Autónomo can be stopped/started seasonally. Never done this. There could be a charge for deregistering and reregistering.

If you earn less than the monthly expenses of your business you don’t have a business. You still have to pay social security and other trading costs.

Before you start make a list of expenses, how much you need to earn each month. Make a list of potential customers that can afford your service. Create a marketing plan about how you will contact those customers. Have a cash reserve of at least 3-6 months to get your business started.

Don’t undercharge. I’m in the design industry and always notice local graphic designers undercharging. Ie: Logos @ 25€, websites for 100€ etc. Theres not enough hours in the day or available customers to make it through 1 year at those prices. Usually their businesses fail in the 1st 6 months.

Agencies withholding 19%. Thats something to do with contracted employment. An employer will hold back a percentage to be paid to the tax man quarterly on the employees behalf. Whats withheld is included in the personal tax return at the year end.

Autónomo will invoice and receive the full amount without anything being withheld. The Autónomo will pay the tax amount every 3 months. Also the IVA/VAT due, negative or positive amount.