Starting a new life and taking career steps in Spain is often connected to launching your own business.
Sooner or later, any professional who decides to work independently arrives at the status of Autónomo (self-employed).
In the Spanish reality, this status comes with many professional opportunities as well as certain responsibilities. However, with precise knowledge of the rules and legislation, the process is completely manageable.
For registration, it is essential to have a professional advisor—a so-called Gestor. Having a gestor in Spain is your guarantee of peace of mind, as they monitor your declarations and communication with the state on a monthly basis.
Tarifa Plana (Flat Rate) and New Benefits
A preferential system known as Tarifa Plana applies to new autónomos in Spain. Although conditions have evolved over the years, today the fixed preferential amount for newly established autónomos during the first 12 months is approximately 80 Euros per month (depending on the activity).
How benefits are maintained or refunded: This 80-Euro rate covers basic social security costs. If your income in the first year does not exceed the minimum wage (SMI), this benefit can be extended for another year.
Income-based contribution system (Sistema de cotización por ingresos reales): This means that at the end of the year, actual earnings are verified (Regularización). If you earned more than you declared in advance, Social Security will request the difference; if you earned less, the overpaid amount will be refunded or credited toward future taxes.
Main Taxes for an Autónomo
In addition to your monthly social security contribution, you must settle accounts with the state budget based on your income:
Personal Income Tax (IRPF): Every quarter (Model 130), you pay a percentage of your profit (revenues minus expenses). Typically, this is 20%. At the end of the year, an annual tax return (Declaración de la Renta) is filed.
Value Added Tax (IVA): If your activity is subject to IVA, you file a return every quarter (Model 303). Certain sectors (such as medicine and specific types of education) are exempt from IVA.
The Dual Reality: Being a Spanish Resident While Maintaining an Individual Enterprise in Georgia
If you are a citizen of Georgia, hold Spanish residency (living here and integrated into the market), but simultaneously have an individual entrepreneur status opened in Georgia (including small business status, which is taxed at 1%), what does the law say?
According to the Spanish Tax Code: If you spend more than 183 days a year in Spain, or if your family and the center of your vital interests are here, you automatically become a Spanish tax resident.
Worldwide Income Taxation: Under Spanish legislation, residents are required to declare their worldwide income (Renta Mundial). This means that income earned through a Georgian individual enterprise is also subject to declaration in Spain.
Double Taxation Avoidance Agreement: An agreement to avoid double taxation is in effect between Georgia and Spain. This means that the tax paid in Georgia is taken into account. However, because Spain has progressive and higher tax rates (especially compared to Georgia's 1% small business rate), the Spanish tax authority (Hacienda) is authorized to demand the coverage of the difference (i.e., the tax determined by Spanish standards).
Practical Advice: Maintaining a Georgian individual enterprise alongside Spanish residency requires strict attention from tax authorities. If your Georgian business genuinely deals with digital services and your clients are from Europe, the Spanish Hacienda may require you to transfer this activity into the Spanish space (i.e., opening a local autónomo) to avoid risks. In such cases, consultation with a professional gestor is critically essential to ensure your financial flows are completely transparent and legal.
Life as an autónomo in Spain is not a difficult labyrinth—it is simply a set of rules where precision and timely response guarantee your own success. Trust the process, act in full compliance with the law, and give your ideas European opportunities!
This article has been prepared based on official legislative sources of the Kingdom of Spain and verified data from the State Official Gazette (BOE).
— Discover your Spain.
