This guide is what worked for us and the people we've helped — it is not legal or tax advice, and we are not legal or tax professionals. Rules change, every situation is different, and the cost of getting it wrong (denied visas, double taxation, fines, missed deadlines) is real.
Before you act on anything here, speak with a qualified legal or tax professional — an immigration lawyer (abogado de extranjería), a cross-border tax accountant, or a licensed gestor — who can review your specific facts. Use this guide to know what questions to ask, not as a substitute for paid advice.
Autónomo (self-employed) is Spain's equivalent of a US sole proprietor. You register with Hacienda (Modelo 037/036) and Seguridad Social, pay a monthly cuota, and invoice clients in your own name. Setup is free; ongoing accounting via a gestor runs €60–€120/month.
An SL (Sociedad Limitada) is a private limited company — Spain's equivalent of an LLC. You need a notary, a unique company name from the Registro Mercantil Central, a minimum share capital of €1 under the 2022 Crea y Crece law, and a CIF (corporate tax ID). Setup costs €600–€1,500. Ongoing accounting runs €150–€350/month plus annual cuentas anuales filing.
Rule of thumb: under €40,000–€60,000/year of net profit, autónomo is usually cheaper and simpler. Above that, an SL starts to pay off in tax efficiency and liability protection.
Social Security cuota is now income-based (the post-2023 reform): roughly €230/month at the low brackets, scaling to €590+/month at €6,000+/month of net income. New autónomos get the tarifa plana (€80/month) for the first 12 months, extendable a second year if you earn under SMI.
Income tax (IRPF) is withheld at 15% on most invoices to Spanish clients (7% for new autónomos in years 1–3). Quarterly Modelo 130 / 303 (VAT) filings are mandatory; annual Modelo 100 / 390 closes the year.
Deductible expenses are narrower than in the US: home office is partially deductible only if you've declared part of your home as the business address; meals are deductible only with full invoice + payment by card, capped at €26.67/day; vehicles are almost never fully deductible unless used 100% for business.