27 Jul Freelancing In Barcelona: What You Need To Know Before Going Autónomo

Rare are the places that truly have it all. Sunlit and playful, Barcelona bursts with creativity and diversity. There’s something for everyone in the capital of Catalonia, and more free spirits, middle-aged and millennials alike, are recognizing its abundant potential. With welcoming people, irresistible food and an unpretentious lifestyle, the City of Gaudi lately seems like a perfect destination for settling down, at least for a little while.

How Welcoming Barcelona Really Is?

Even though Spain has not been so lucky in terms of the economic and employment status for the last couple of years, experts from all over the world are still quick to rush to Barcelona, brave enough to try to make a living there, under the gentle sun and swaying buildings. Going freelance here is not impossible, but from what we know so far, it is not so easy either.

Furthermore, the law forbids you from starting the process right away, and you’ll need to spend at least a year in the country as its legal citizen beforehand. Still, the myriad of simple pleasures that Barcelona offers to weary foreigners may be just enough to compensate for potential financial difficulties. If the thought still tempts you, read on.

In the Catalan capital, the freelance life certainly comes with its glorious advantages and troubling disadvantages. The status of autónomo, a Spanish freelancer, is not easily acquired, and the process of becoming one seems like the greatest stumbling block. Here’s what you need to apply for registration.

What Do You Need To Register?

As a foreign citizen, you’ll need to thoroughly assemble all of your expat documentation in order to begin the process. Have in mind that each single paper needs to be translated to Spanish, and unfortunately, you’ll need to hire an official translator for the job. Furthermore, those documents that originate from your home country will have to undergo the legalization process as well, which means you’ll have to officially stamp them and forward to the Consulate or Embassy in Spain of the country of your origin for a further check.  

In addition to the passport, you’ll need to become a legal citizen of Barcelona and obtain a Spanish ID, or how they call it over there, a NIE, as well as a Community Registration Certificate. Once your citizenship status is settled, the process of becoming an autónomo may begin.

First, you’ll need an elaborate description of your proposed activity and proof that you have enough financial resources to develop it. The rest of the required documents, such as academic accreditations, proof of property ownership and a driver’s license, depend on the very line of work you’ll be conducting in Barcelona. As everywhere else when it comes to business, a bank account is another thing necessary for the process.

Where to Set It in Motion?

After collecting, stamping and legalizing all of the documents required, the first step you ought to make is to apply for the IAE (Impuesto de Actividades Economicas) registration, a part of the Spanish tax regulation system. Then, another thing you’ll need to register for is Social Security, which can be done in the RETA (Régimen Especial de Trabajadores Autónomos) at the Seguridad Social.

What Fees To Expect?

Even when paying the minimum base social security contribution, autónomo monthly fees in Spain are still pretty high. However, the government has recognized the problem, and decided to make the freelance community a bit more welcomed in the country.

In accordance with that, new autónomos are now compelled to pay a reduced monthly fee of €50 for the first 30 months of the business activity, if under the age of 30, while budding freelancers that are older than that are allowed to enjoy that financial perk for the first 18 months.

How Much You’ll Have To Spend On Taxes?

Like the social security monthly fee, the Spanish tax requirements are another burden on the autónomo s’ budget. Even though they certainly don’t make a freelancer’s life much easier in the country, tax systems are pretty well managed here, which means that they offer a couple of benefits for regular payers. If self-employed and registered as one, the government of Spain allows you a possibility of compensating expenses against your annual bill.

Depending on your line of work, expenses like social security contributions and accounting services, as well as the cost of materials and supplies, rent and the insurance you’ll need for conducting your independent business, can be tax-deductible.

Even with all of these benefits, the following tax fees, with potential additional requirements that depend on the nature of your business, will still be mandatory:

• IVA (Impuesto sobre el Valor Añadido) – translated to simple English, IVA is in fact a Value Added Tax (VAT).
• IRPF (Impuesto sobre la Renta de las Personas Físicas) – a quarterly return that refers to personal income tax.
• Declaración de la renta – an annual income return that every autónomo is compelled to pay by June 30th each year.

Are They Any Alternatives?

Luckily, there are a couple of freelancing options in Spain that don’t require an autónomo registration. As representatives of free agents, Spanish co-ops, like Barcelona-based SMartib, recognize the difficulties of becoming an independent worker in Barcelona, and offer an alternative. For the expense of an initial membership fee and the percentage of invoices, these organisations are on a quest of reducing the cost of living as a freelancer in the country, but not only that.

By applying for their membership card, you’re being freed of most of the additional requirements that the autónomo process implies. Instead, your work, especially if you work as an artist – a musician, designer or photographer, for instance – is represented by the co-op and thereby completely legal. Apart from that, such organisations provide professional orientation and educate their protégées on how to stay legal and protect their legal status and the licence of their work.  
With fees or without them, Barcelona stays one of the ultimate destinations for working remotely. If nothing else, being registered as an autónomo in the capital of Catalonia will certainly allow you a decent and relaxed living in one of the most beautiful cities in the world.