How to Register as a Self-Employed Worker in Spain as a Foreigner
NIE, Form 036, RETA, and mistakes to avoid. Everything you need to start invoicing legally—step by step.
Can a foreigner register as a self-employed worker in Spain?
Yes, without exception. Any foreigner can work as a self-employed individual in Spain, regardless of their nationality. What varies depending on your country of origin is the documentation you need to provide before starting the process.
There are two distinct situations:
In this article, we focus on the process of registering as a self-employed worker once you have your residency documents in order. If you don’t have them yet, please contact us first —the order matters, and starting in the wrong order can cost you time and money.
The 4 steps to register as a self-employed worker if you are a foreigner
The entire process has four steps. The order is important: you can't do step 3 without step 2, or step 2 without step 1.
Get your NIE (Foreigners' Identification Number)
The NIE is your tax identification number in Spain. Without it, you can’t do anything at all: not open a bank account, not sign a contract, and not register with the tax authorities.
How to get it:
- From Spain: Apply at the police station in your province by making an appointment. You will need your passport, form EX-15, proof of the reason for your visit (starting a business), and proof of payment of fee 790.
- From your home country: at the Spanish consulate in your city. This is useful if you haven't traveled to Spain yet.
Estimated time: 2 to 8 weeks, depending on the province. In large cities such as Madrid or Barcelona, it may be faster with expedited processing.
Tax Registration: Form 036 or 037
Before issuing your first invoice, you must notify the Tax Agency that you are starting a business. This is done using Form 036 (full version) or Form 037 (simplified version, for residents only).
Model 036 or 037?
| Feature | Model 036 | Model 037 |
|---|---|---|
| For non-resident foreigners | ✓ Yes | ✗ No |
| For residents of Spain | ✓ Yes | ✓ Yes |
| Intra-Community transactions | ✓ Yes | ✗ No |
| Activities under various headings | ✓ Yes | ✗ No |
| Easier to process | — | ✓ Yes |
The most important decision in Form 036: the IAE classification code. The IAE (Tax on Economic Activities) classifies your business activity. Choosing the wrong code could invalidate your VAT returns or result in obligations that do not apply to your actual business activity.
Some common job titles for digital workers:
- 769.9 — Other professionals involved in computer-related activities
- 763 — Computer Programmers and Analysts
- 719 — Other professionals in the retail sector
- 841 — Advertising, public relations, and related services
- 899 — Other professional services not elsewhere classified
Registration with the RETA (Special Scheme for Self-Employed Workers)
The RETA is the Social Security system for the self-employed. Once you have registered with the tax authorities, you have exactly 60 calendar days to register with the RETA. After that period, a penalty is automatically imposed: a 20% surcharge on all unpaid contributions dating back to the start of your business activity.
RETA Contributions in 2026 (Actual Income System)
Starting in 2023, self-employed contribution rates are calculated based on actual net income. In 2026, the schedule will look like this:
| Monthly net income | Minimum base | Minimum monthly payment |
|---|---|---|
| Less than €670 | 735,29 € | ~200 € |
| €670 – €900 | 816,99 € | ~230 € |
| €900 – €1,166.70 | 872,55 € | ~245 € |
| €1,166.70 – €1,300 | 950,98 € | ~267 € |
| €1,300 – €1,700 | 960,78 € | ~270 € |
| €1,700 – €2,500 | 960,78 € | ~270 € |
| €2,500 – €3,000 | 1.143,79 € | ~321 € |
| More than €6,000 | Up to €4,139.40 | Up to ~€590 |
Registration with the RETA is processed through the General Treasury of the Social Security (TGSS), either in person or via the online portal. You will need a digital certificate or a Cl@ve.
Open a bank account and get your finances in order
It’s not an official requirement, but it’s essential in practice. Keeping your personal and business finances separate from day one will save you a lot of headaches when it comes to filing your taxes and in the event of an audit.
- Business bank account: at any Spanish bank. You will need your NIE and registration with the TGSS. Some banks also require registration with the tax authorities.
- Invoicing software: Generate invoices with sequential numbers, dates, customer information, and the applicable VAT. Save all expense receipts.
- Income and Expense Ledger: If you’re on the simplified direct tax system (which applies to most freelancers), you’re required to keep one. A well-organized Excel spreadsheet or any basic accounting software will suffice.
Do you have any questions about any of these steps?
We handle the entire registration process for you: NIE, Form 036, RETA, and opening a bank account. You can focus on your business.
The 5 Most Common Mistakes Foreigners Make When Registering
After more than 15 years helping foreign self-employed individuals register in Spain, these are the mistakes we see most often:
An incorrect classification can invalidate your VAT returns, require you to file your taxes differently, or exclude you from certain deductions. Always check before filing Form 036.
The reduced rate of €80/month is not automatically applied. You must specifically request it when signing up. If you do not request it at that time, you will lose this benefit.
The payment period begins on the date you indicate as the start of your business activity on Form 036, not when you start receiving payments. An automatic late payment penalty of 20% applies to all overdue payments.
If you invoice customers both within and outside the EU, the VAT requirements differ. Always applying a 21% rate to all invoices could be a mistake that leads to refund claims or penalties.
If you have been a resident of Spain for less than 5 years, you may be eligible for a flat tax rate of 24% instead of the progressive income tax rate (up to 47%). You must apply within 6 months of becoming a resident. After that period, you lose this eligibility permanently.
Your tax obligations after registering
Signing up is just the beginning. Once you’re up and running, you have a number of recurring obligations to the IRS and Social Security:
| Obligation | Model | Frequency | Deadline |
|---|---|---|---|
| VAT Return | Model 303 | Quarterly | The first 20 days of January, April, July, and October |
| Installment payments for income tax | Model 130 | Quarterly | Same deadlines as for VAT |
| Annual VAT Summary | Model 390 | Annual | January of the following year |
| Income Tax Return | Model 100 | Annual | April–June of the following year |
| Transactions with third parties | Model 347 | Annual | February of the following year |
| RETA Contribution | — | Monthly | The last business day of each month (direct debit) |