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: info@limitconsulting.com : +34 951 087 937
Limit ConsultingLimit Consulting Limit ConsultingLimit Consulting
  • Starting a Business
  • Tax
  • Social Security
  • Employing

Fake Autonomo or Autonomo TRADE?

In Spain, the term “falso autónomo” (fake self-employed) refers to someone registered as self-employed but who, in practice, works under conditions that make them more of an employee than an independent professional.

This is illegal and considered a form of Social Security fraud — both the company and the individual can face serious penalties.

Why does this situation occur?

Usually, companies use fake autónomos to reduce labor costs and avoid the obligations associated with hiring employees (such as Social Security contributions, paid leave, or severance payments).

However, this “cost-saving” shortcut can backfire.

If a labor inspection determines that the working relationship is effectively one of employment, the inspector will reclassify the worker as an employee. The company will then have to:

  • Pay all Social Security contributions retroactively from the start of the relationship.
  • Face fines of up to €3,005 for each affected worker.
  • Possibly deal with legal claims from the worker, who may report the situation to the authorities.

Signs that you might be a “fake autónomo”

You could be at risk if most of these conditions apply:

  • You work under a fixed schedule set by the client.
  • You follow orders and don’t use your own professional judgment.
  • You receive a fixed monthly payment regardless of project outcomes.
  • You don’t use your own tools or capital, so all profit or loss is assumed by the client.

In short: if you operate under your client’s organizational and disciplinary control, you are not a real autónomo, but rather an employee in disguise.

Example:

A delivery driver registered as self-employed only works for one company, follows its schedule, and receives a fixed salary. Although labeled “autónomo,” this person is, in reality, an employee — and should be registered as such.


The legal alternative: Autonomo TRADE (Trabajador Autónomo Dependiente)

To address this grey area, Spanish law created the figure of the Economically Dependent Self-Employed Worker (TRADE).

A TRADE provides services habitually and predominantly to a single client, who accounts for at least 75% of their total income.

This model allows for a legal, flexible collaboration without crossing into employment — but only if several strict conditions are met.


Key requirements to qualify as a TRADE

A lawful TRADE must:

  • Operate with their own equipment, assets, or structure, and assume business risk.
  • Organize their work independently, though they can follow technical or procedural guidelines from the client.
  • Be paid based on results, not a fixed wage.
  • Have a written commercial contract, registered with the Servicio Público de Empleo Estatal (SEPE).

Additionally, a TRADE cannot:

  • Have premises or offices open to the public.
  • Be part of a Limited (SL) or Civil Company (SC).
  • Avoid contributing for work accident coverage in their monthly self-employed fee (the minimum contribution is around €278.60).

Obligations and rights of a TRADE

Once registered, a TRADE must:

  • Sign and register the contract with SEPE, detailing the terms of collaboration.
  • Comply with the same administrative duties as any other autónomo (tax filings, contributions, etc.).

They also enjoy specific rights, such as:

  • At least 18 days of paid holidays per year, as defined in the contract.
  • Compensation if the client ends the contract without cause.
  • Legal protection under the Statute of Self-Employment, in case of disputes.

What must the TRADE contract include?

According to Article 12 of the Estatuto del Trabajo Autónomo, the TRADE contract must specify:

  • Identification of both parties.
  • Description and nature of the activity.
  • Duration (fixed-term or indefinite).
  • Payment terms and invoicing conditions.
  • Working schedule and rest periods.
  • Rules for justified interruptions (vacations, illness, maternity/paternity).
  • Causes and notice periods for termination.
  • Compensation clauses for early termination without justification.
  • An explicit statement confirming TRADE status.

What if the TRADE contract isn’t registered?

Failing to formalize or register the contract has serious consequences:

  • Loss of TRADE rights (no holidays, no compensation, etc.).
  • Risk of being classified as a fake autónomo.
  • Legal vulnerability in disputes.
  • Heavy fines for the company.
  • Mandatory retroactive registration in the Social Security system, with surcharges of around 20%.

The TRADE model provides a balanced legal framework for professionals who work mainly for one client while maintaining autonomy.

For companies, it offers flexibility; for workers, it provides protection and stability.

But it’s essential that both parties strictly comply with the legal requirements and register the contract.

Otherwise, what starts as a “collaboration” can quickly turn into a labor fraud case — with severe financial and legal consequences.


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