Self-Employed in Malaga, Spain
Embarking on a self-employed journey in Spain offers exciting opportunities for entrepreneurship and professional growth. However, it is crucial to understand and fulfill the requirements set forth by the Spanish authorities.
OUR TEAM of Specialists know all you have to fulfill, in order to be self-employed in Malaga, Spain.
At Malaga RELOCATION SERVICES, you will find a specialized partner if you’re thinking to become self-employed in Malaga, Spain. We can advise you through this process, providing professional legal advice in all matters related to sel-employment.
In this article, we will provide you with SEVEN key aspects to become self-employed in Malaga Spain,
1. TAX REGISTRATION
As a self-employed individual in Spain, you must register for tax purposes. This entails obtaining a tax identification number (NIF) and enrolling in the appropriate tax regime, such as the Special Regime for Self-Employed Workers (RETA) or the Simplified Regime for Small Businesses (REDEME).
Further, registering with the tax authorities will ensure compliance with tax obligations and enable you to issue invoices.
Also, deductions and allowances are available based on specific circumstances, such as family status and contributions to pension plans.
2. SOCIAL SECURITY REGISTRATION
Self-employed individuals are also obligated to register with the Spanish Social Security system. This registration provides access to healthcare benefits, pension contributions, and other social security benefits.
Moreover, the monthly social security contributions are based on your estimated income and chosen regime.
We assist our clients, providing them with the best outlook for their financial interests.
3. BUSINESS ACTIVITY LICENSING
Certain business activities in Spain require specific licenses or permits. Depending on the nature of your self-employed venture, you may need to obtain professional certifications, health permits, or licenses from relevant authorities.
Additionally, it is important to research and comply with any specific requirements for your industry or profession.
OUR TEAM consists of qualified lawyers and business advisors, specialized in all legal issues concerning licensing in Malaga, Spain. We will provide you with a comprehensive advise, as you start filing for your business license.
4. BOOKKEEPING and ACCOUNTING
Keeping accurate financial records is essential for self-employed individuals. In Spain, maintaining a detailed accounting system is mandatory. This includes recording income, expenses, invoices, and other financial transactions.
Additionally, hiring an accountant or utilizing accounting software can streamline this process and ensure compliance with reporting obligations.
We offer professional Bookkeeping which is in full compliance with the Spanish Law.
5. VAT - (VALUE ADDED TAX)
Registering for VAT is mandatory for self-employed individuals when their annual turnover exceeds a certain threshold (currently €30,000). VAT returns must be filed periodically, and VAT collected from clients must be remitted to the tax authorities.
Moreover, understanding VAT rates, exemptions, and allowable deductions is crucial to managing your tax obligations effectively.
6. INCOME TAX
As a self-employed individual, you are responsible for reporting and paying income tax on your business profits. Spain operates on a progressive income tax system, and your tax liability will depend on your earnings.
In addition to it, you need to familiarize yourself with the applicable income tax rates, deductions, and allowances to ensure accurate reporting and compliance.
We are specialized in calculating INCOME TAX-related matters for self-employed individuals.
7. BUSINESS INSURANCE
While not mandatory, it is advisable to obtain appropriate business insurance coverage to protect yourself and your business. Insurance options may include professional liability insurance, public liability insurance, or business property insurance.
Further, assessing the risks associated with your specific self-employed activity and obtaining suitable insurance can provide peace of mind.
Bare in mind that it is essential to carefully go over the these specific details. We can provide you with professional advice on this stage as well.
Consulting with a knowledgeable business advisor, tax consultant, or lawyer who specializes in self-employment can provide invaluable assistance in meeting legal obligations.
OUR TEAM can help you optimize your tax position, and ensuring a successful start to your self-employed journey in Spain.