Can you be self-employed in Spain as a foreigner?

Some foreigners consider self-employment as a good option for professional development in Spain. Before doing so, you should consider the requirements and the advantages and disadvantages of being self-employed in Spain.

Can foreigners be self-employed in Spain?

Yes, it is possible to be self-employed in Spain as a foreigner. In fact, both EU and non-EU foreigners can do so, if they meet the requirements. Furthermore, they will have the same rights and benefits as Spanish self-employed workers.

Requirements to become Self-Employed (Autónomo) in Spain

General Requirements

The requirements that must be met to become self-employed in Spain are the following:

Be of legal age or an emancipated minor. That is, be a minimum of 18 years old or be a minor who is legally emancipated.
Have legal capacity. One must not have any legal limitations to carry out an economic activity.
Economic activity on one’s own account and for profit. It is important that the activity is developed independently and with the goal of obtaining financial benefits.
Habitual activity. This means that the activity is carried out regularly and not occasionally.
Obtain licenses and permits, if necessary.
Reside in Spain. It is required to have legal residence or a stay/resident authorization that permits the activity.
Documentation. Spanish people: DNI. EU Foreigners: NIE and Certificate of Registration as an EU Citizen (if the stay exceeds 3 months). Non-EU Foreigners: TIE with the self-employment work authorization.

Requirements for EU Foreigners

In the case of people who originate from a country belonging to the European Union, they must:

Be of legal age.
Have a valid passport or identity document.
Obtain the Certificate of Registration as an EU Citizen (NIE and Registration Certificate), if the planned stay is longer than three months.

Requirements for Non-EU Foreigners

For non-EU foreigners, it will be necessary to obtain and provide:

Initial authorization for temporary residence and self-employment work.
Comply with the general requirements to be self-employed in Spain, such as being up to date with tax and social security obligations.

Advantages and disadvantages of being self-employed in Spain

Like almost everything, being self-employed has its advantages and disadvantages.

Advantages of being self-employed

Flexible hours. You have the freedom to organize your work however you want, to work wherever you want and to accept or reject whatever assignments you want.
You can earn more money. You keep all the money your work generates, and how much money you earn depends only on your ambition, professionalism and dedication.
No initial capital is required to get started. You won’t need to provide any initial capital or submit year-end balance sheets, and you can start developing your business immediately.
Ease of professional growth. You can modify your activity, services and prices, allowing you to expand your client base and grow your business.
VAT deduction. Expenses directly related to the activity are eligible for VAT deduction.
You can work for several clients at the same time. If you have a versatile career path, you’ll be able to offer different services depending on the client you’re targeting.

Disadvantages of being self-employed

There’s no fixed income. Many people worry about not having a secure monthly income, with months of high income and others where there may be less or even no income.
Unlimited liability. As a self-employed person, there is no limited liability. This means that if you incur a debt, you will be liable with all your assets.
Financing difficulties. If you need to get a loan, it’s going to be much more difficult for you as a self-employed person than for someone else. This is because banks don’t want to take on more risks in an environment where income isn’t guaranteed.
Obtaining unemployment benefits is more difficult. Self-employed workers are also entitled to unemployment benefits, similar to those of employees, but they must meet more requirements and stipulations. Self-employed workers must prove that their cessation of activity is due to a significant loss of earnings, i.e., that it is not their own choice.

Now you know that foreigners can be self-employed in Spain, provided they meet the requirements, which differ depending on whether they are EU citizens or non-EU citizens. The main requirements are to be at least 18 years old, have documentation, and a permit to work in Spain and carry out an economic activity on a personal and regular basis. If this is the case, you can enjoy the flexibility, growth, and income that comes with being self-employed, although always keeping in mind that there are also greater economic instability, responsibility and difficulties in obtaining financing.

Further information

This article is part of our service Business consulting. Visit this section where you will find all the useful information on this topic, including a complete guide on How to start a business in Spain as a foreigner.

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