Spain treats autónomo status and an actual company as genuinely different things: autónomo is a tax and social security classification you register under personally, not a company at all, while an SL is a separate legal entity you form. Most freelancers and small operators start out as autónomo, and once you see the cost comparison it's easy to understand why. Here's how the process runs for 2026.
1. Autónomo or SL
Two paths cover most people setting up a business here.
- Autónomo. Not a separate legal entity at all, you personally are the autónomo. It's cheaper and simpler than forming a company, but every business debt is yours personally, and profit is taxed at personal Income Tax (IRPF) rates.
- SL (Sociedad Limitada). Spain's standard limited liability company structure. Minimum share capital is technically €1 under the Crea y Crece reform, though €3,000 fully paid in remains the common practice; dropping below €3,000 brings special legal-reserve rules into play until the balance is rebuilt.
A rough benchmark: an SL tends to start making fiscal sense once net profit consistently clears around €40,000 to €50,000 a year. Below that level, the SL's monthly accounting and filing costs usually eat into the tax savings enough to make autónomo status the better deal.
2. Registering the business
Autónomo
Two filings get you registered: Modelo 036 or 037 with Hacienda (the tax agency) to declare your activity, and enrollment in RETA, the self-employed branch of Social Security, on or before the date you actually start. Both have to be done before trading begins.
SL
Non-Spanish nationals need an NIE (foreigner ID number) first, followed by a notarial deed (escritura pública) signed before a Spanish notary, and then inscription in the Registro Mercantil (Commercial Registry) for the province where the company is based. Express telematic incorporation through the CIRCE system can wrap up in 5 to 10 working days. Once notary, registry, and legal-advisory fees are added on top of the share capital itself, total setup typically runs €1,500 to €4,000.
3. Getting your NIF or CIF
Autónomos simply use their personal NIF (or NIE, for foreigners), with no separate business tax ID to obtain. SLs instead get a CIF, issued through the same Modelo 036 filing used to register the company for tax purposes with Hacienda.
4. Licenses and permits
There's no single national business license in Spain. What's needed depends on industry and municipality: a licencia de apertura (opening license) is commonly required for physical premises, regulated professions need their own authorization, and local town halls sometimes add further requirements. Check directly with your ayuntamiento.
5. IRPF, RETA contributions, corporate tax, and IVA
Autónomos pay IRPF (personal income tax) on business profit at progressive rates, made as quarterly advance payments via Modelo 130 and reconciled in the annual Renta return. Separately, RETA social security contributions scale with income: a reduced flat cuota of roughly €80 to €88 a month covers the first 12 months (extendable a second year if income stays below the minimum wage threshold), after which contributions climb according to your declared income bracket, landing around a combined 31.4% of the contribution base you choose.
SLs pay corporate tax (Impuesto sobre Sociedades) at a standard 25%, reduced to 15% for the first two profitable years for companies with individual shareholders, with further reduced brackets available to micro and small enterprises under recent turnover-based reform.
VAT (IVA) sits at a standard 21%, charged on invoices and reclaimed against business expenses, with the net amount remitted quarterly via Modelo 303.
6. Staying compliant
Autónomos file Modelo 303 (IVA) and Modelo 130 (IRPF advance) every quarter, on top of an annual Renta return and a VAT summary (Modelo 390). SLs file annual accounts with the Registro Mercantil and an annual corporate tax return, in addition to the same quarterly VAT filings. Spain is also rolling out Verifactu, a certified electronic invoicing system, with mandatory compliance now scheduled for mid-2027 for most businesses.
Spain business costs at a glance
| Item | Cost |
|---|---|
| Autónomo registration (Hacienda + RETA) | Free |
| SL formation (notary + registry + advisory) | ~€1,500 to €4,000 |
| SL minimum share capital | €1 (€3,000 common practice) |
| Autónomo cuota (first 12 months) | ~€80 to €88/month |
| Autónomo cuota (ongoing, income-based) | ~31.4% of chosen base |
| Corporate tax, standard rate | 25% |
| Corporate tax, first 2 profitable years | 15% |
| VAT (IVA), standard rate | 21% |
Frequently asked questions
How much does it cost to register as autónomo in Spain?
Free. Registration is a two-step process: filing Modelo 036 or 037 with Hacienda and enrolling in RETA (Social Security).
How much does the autónomo cuota cost in the first year?
A reduced flat rate of roughly €80 to €88 a month for the first 12 months, extendable a second year if income stays below the minimum wage threshold.
How much capital do I need to start an SL in Spain?
Technically €1 under the Crea y Crece reform, though €3,000 fully paid remains common practice.
What's the corporate tax rate in Spain?
25% standard, reduced to 15% for the first two profitable years for companies with individual shareholders.
At what profit level does an SL make more sense than being autónomo in Spain?
Roughly €40,000 to €50,000 a year in net profit, the point where an SL's tax savings typically start to outweigh its extra accounting and filing costs.
Fees and rates above come from the Agencia Tributaria (Hacienda) and Seguridad Social as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Spain-qualified gestor or lawyer about your specific situation.