If you’re about to register as self-employed (autónomo) in Spain, your first question is usually: “How much will this cost me?”

Below is a simple, realistic overview of the most common costs and obligations, so you can build your business plan without surprises.

We’ll cover:

• Social Security contribution

• Income Tax (IRPF)

• VAT (IVA)

• Bookkeeping formalities and recurring reports

1. Social Security contribution (your first fixed cost)

This is the first cost to consider. 

This is the first cost every autónomo must consider.

From the moment you register, you must pay a monthly Social Security contribution. The amount depends on your estimated profit, and you can choose your contribution base within a legal range.

That contribution base matters because it defines your future benefits, such as:

• Sick pay

• Maternity / paternity pay

• Unemployment benefits

• Pension

So even though it feels like a “monthly fee,” it’s also your protection system.

2. Income Tax (IRPF)

Autónomos trade in their own name, which means:

• All business profit is directly attributed to you.

• There is no separate company salary vs. profit.

• What you earn is your personal income.

Like any other income, autónomo profit is taxed under personal income tax (IRPF), calculated annually.

Quarterly income tax prepayments

Every quarter, you report your operating results and prepay part of your yearly IRPF bill.

• You pay 20% of your business result every 3 months.

• Your business result is:

Business result = gross income – deductible business expenses

Then:

20% of business result = quarterly IRPF prepayment

These payments are advanced against your final yearly tax bill.

Retentions (withholding tax)

In some cases, clients are required to withhold part of what they pay you and send it directly to the tax agency on your behalf. This is called a retention (retención).

If retentions apply to you, they reduce what you pay quarterly, because you’ve already prepaid part of your IRPF through your invoices.

Read more:

 How much tax will I pay?

What expenses can I offset against tax?  

3. VAT (IVA) obligations

Not every activity is subject to VAT, and some transactions are VAT-exempt. So depending on what you do, VAT may work differently.

Key point: Spain has no VAT exemption for low turnover.

If your activity is subject to VAT, you must register from day one.

Regular VAT system (general regime)

Under the general VAT system:

• You add VAT to your sales invoices.

• You recover VAT on most business expenses.

• Every quarter you file a VAT return to pay the difference.

Your quarterly VAT report must be submitted whether:

• VAT is payable, or

• VAT results in a credit in your favour.

Read more:

• Understand IVA, retentions and income tax

• How to estimate your quarterly result in Quipu

Retailers VAT system (recargo de equivalencia)

If you sell unaltered goods (in a physical shop or online), you may fall under the special VAT system for retailers.

Learn more in our article: Retailer’s tax system.

International VAT registration (EU business)

If you sell B2B to other EU companies under either VAT system, you’ll also need international VAT registration (VIES).

Read more: Intra-community invoice and VAT number.

Other VAT regimes you may encounter

Depending on your activity, you may fall under other special VAT systems, for example:

• Travel agencies and tour operators

• Electronic services and broadcasting

When in doubt, ask before you invoice — VAT mistakes are expensive to fix later.

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4. Bookkeeping formalities & recurring reports

Besides paying Social Security and taxes, autónomos must stay compliant with ongoing bookkeeping duties.

You are required to:

• Issue invoices correctly

• Keep a copy of every expense invoice

• Track all invoices issued and received (including IVA)

• Maintain ledgers of assets and depreciation

And to submit recurring reports such as:

• Quarterly VAT balance

• Quarterly profit & loss

• Annual report of clients/suppliers over €3,000 (Modelo 347)

• International operations reports (e.g., Modelo 349)

• Other filings depending on your specific case

Missing a filing or failing to provide documents when requested can lead to serious penalties. That’s why clean, up-to-date books matter — not only for compliance, but for peace of mind.

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How Limit helps

At Limit, we handle all of the above for you:

• Registration as autónomo

• Quarterly tax filings

• Tax agency representation

• Ongoing bookkeeping review

• Verifactu-ready accounting

• Full integration with Quipu

With Quipu you can invoice, track expenses, and monitor results in one place — so you can anticipate taxes and avoid surprises.

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Ready to register as self-employed?

If you want a smooth, fully remote setup in English — and a bookkeeping system built for digital businesses — we’ve got you.

Register as self-employed with Limit.