How do I register as a sole trader in Spain?

How do I set up a sole trader in Spain?

Every foreign citizen who wants to become a sole trader in Spain needs to obtain NIE (Numero de Identification de Extranjeros) – an identification number for foreigners. The persons who are not citizens of the European Union are required to obtain a self-employment work permit and a residence visa.

How do I register as self-employed in Spain?

Firstly, you register with the tax office (Agencia Tributaria or Hacienda) and secondly, you join the autonomo social security system (Regimen Especial de Trabajadores Autonomos or RETA). For the autonomo registration, you need a national insurance number for Spain (An NIE) and a Spanish bank account.

Do you need to register anything when setting up a sole trader?

To set up as a sole trader you must register for income tax with Revenue as a self-employed sole trader. You do this using Revenue’s online service. … You must keep proper records to allow you to fill out your annual tax return. You pay the Universal Social Charge directly to Revenue when you make your annual tax return.

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How do I start a trading company in Spain?

How to start a business in Spain as an expat

  1. Ensure you have a foreigner’s tax identification number (NIE)
  2. Register the company name with the Mercantile Registry (Registro Mercantil Central or RMC)
  3. Get a company tax identification number (CIF)
  4. Open a business bank account.
  5. Sign the deed of incorporation.

How much does it cost to register a company in Spain?

There’s no fixed cost. It would depend on several factors (such as: initial share capital, number of partners, extension of the incorporation deeds, …). The costs for setting-up an ordinary limited company (3,000 euros initial share capital, with 1-4 shareholders usually are: 3,000 € (initial share capital).

Can you work in Spain without residency?

The exact duration depends on the type of roots process: For the social arraigo, you must have lived in Spain for 3 years without legal residency, and find a job offer. For working arraigo or arraigo laboral, the years required in Spain are 2, out of which during a minimum of 6 months you have worked for a company.

How do I move to Spain as a self-employed?

To apply for a self-employed work visa in Spain, you must:

  1. Not be a citizen of the European Union (EU)
  2. Be over 18 years old.
  3. Not be in Spain with irregular immigration status.
  4. Have no criminal record; proved by a certificate issued in the countries you have resided in during the previous five years.

How much does it cost to be self-employed in Spain?

As of January 2021, the general rate for self-employed professionals increased to 30.6%. This means that self-employed persons paying on the lowest base (€289 per month) will see a €3 monthly increase and the maximum (€1,233.20) will pay €12 more each month.

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Do I need to register as Autonomo in Spain?

The rules in Spain regarding autonomo status are strict. Regardless of whether your earnings are casual and small-scale – such as selling on eBay, selling at craft markets, running a Tupperware party, selling makeup, or if you do occasional after-dinner speaking – you do have to register.

Can I use personal bank account for sole trader?

Can a sole trader use a personal bank account? As a sole trader, you’re not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes.

How much does a sole trader have to earn before paying tax?

The tax-free threshold for individuals is $18,200 in the 2019–20 financial year. A sole trader business structure is taxed as part of your own personal income. There is no tax-free threshold for companies – you pay tax on every dollar the company earns. The full company tax rate is 30%.

What’s the difference between a sole trader and self-employed?

To summarise, the main difference between sole trader and self employed is that ‘sole trader’ describes your business structure; ‘self-employed’ means that you are not employed by somebody else or that you pay tax through PAYE.