How to Register as Self-Employed with the Social Security System

Are you going to register as self-employed with the Spanish Social Security system for the first time? As expert advisors, we explain everything you need to know.

Starting a self-employed activity requires completing a series of essential administrative procedures. Although the process may seem simpler than incorporating a company, registering with the Special Regime for Self-Employed Workers (RETA) of the Social Security system is a key step that requires understanding the obligations and rights involved.

Below, we break down the key aspects of this process.

 

I want to register as self-employed

 

Who must register with the Social Security system?

Any adult person who carries out on a regular, personal, direct, self-employed basis and outside the management and organizational scope of another person, an economic or professional activity for profit.

This obligation is independent of nationality (provided the person has a work permit) and regardless of the level of income generated.

What does “regular activity” mean?

The regulations do not define a specific income threshold to determine whether an economic activity is considered “regular.” However, case law has established that the main indicator is whether the net income from the activity exceeds the annual minimum wage (SMI).

Required information and documentation (Form TA.0521) to register

When completing the registration process, you must provide the following information, corresponding to form TA.0521:

• Personal information: Name, surname, ID/NIE number, and address.
• Activity details: Economic Activity Tax code (IAE), National Classification of Economic Activities code (CNAE), start date, and business address.
• Estimated income: A declaration of the estimated net income you expect to obtain during the calendar year, in accordance with Article 30 of the General Regulation on company registration and affiliation, registrations, and deregistrations.
• Choice of contribution base: You must select a provisional contribution base according to your estimated income.
• Collaborating mutual insurance company: Choice of the entity that will manage occupational contingencies and temporary incapacity.
• Bank details: An account for direct debit of monthly contributions.

Deadlines for registering as self-employed with Social Security

It is important to know that you must register before starting your activity.

In any case, you may complete the registration up to 60 days in advance.

If you have already started working as self-employed, you must still notify your registration, although it will be considered late for all purposes.

The registration process can be completed in several ways:

• Electronic headquarters: through the Social Security online portal using a digital certificate or Cl@ve PIN system.
• In person: you may go to a Social Security office with a prior appointment and submit form TA.0521 in paper format.
• Through an authorized advisor or manager: an advisor or consultancy firm can help you complete this process, especially if you have doubts about the procedure.

Please note that you must first register for the Economic Activities Tax (IAE) with the Tax Agency (the start date of the activity must match in both administrations).

When indicating the start date of the activity in the Social Security registration process, there is the possibility of contributing for the entire month if you wish to improve your benefits. Immediately after this step, it is essential to indicate the professional activity or CNAE code.

Contributions and self-employed fees in Spain

Since 2023, self-employed contributions are based on annual net income. The system works as follows:

The new contribution system based on real income

Since 2023, self-employed contributions are based on annual net income. The system works as follows:

1. Provisional contributions: When registering and throughout the year, you contribute based on a provisional contribution base selected according to your estimated income, within one of the 15 established brackets.
2. Adjustment of the contribution base: You may change your contribution base up to six times per year to adapt it to the evolution of your income. The effective dates for these changes are March 1, May 1, July 1, September 1, November 1, and January 1 of the following year.
3. Annual regularization: The following year, the General Treasury of Social Security (TGSS) will compare your net income (reported by the Tax Administration) with the provisional contributions made. According to Article Five of the General Regulation on Contributions and Settlement of Other Social Security Rights:
   • If you contributed below the corresponding level, you must pay the difference.
   • If you contributed above the corresponding level, Social Security will automatically refund the excess.

What benefits does RETA cover?

Being registered and up to date with payments in RETA entitles you to the protective action of the system, which includes, among others, the following benefits (provided the specific requirements for each are met):

• Healthcare assistance.
• Temporary incapacity (sick leave) due to common illness or non-work accident.
• Temporary incapacity due to occupational illness or workplace accident.
• Birth and childcare benefits.
• Risk during pregnancy and breastfeeding.
• Permanent incapacity.
• Death and survivor benefits (widowhood, orphanhood).
• Cessation of activity (“unemployment benefits” for the self-employed).
• Retirement pension.

Incentives for new self-employed workers: the flat rate

To encourage entrepreneurship, new self-employed workers may benefit from the flat rate scheme. According to Article 38 ter of the Self-Employed Workers Statute Act, this measure consists of:

• First 12 months: A reduced monthly contribution of €80.
• Following 12 months: The €80 contribution may be maintained provided annual net income remains below the minimum wage (SMI). If this threshold is exceeded, the contribution will be adjusted according to the corresponding income bracket.

In addition, the 2023 General State Budget Act establishes a reduced monthly contribution of €80 during the first 36 months for new self-employed workers residing and carrying out their activity in the provinces of Cuenca, Soria, or Teruel.

Do you need help registering as self-employed?

Although the procedures can be carried out independently, hiring a manager or advisor specialized in self-employed matters can save you a great deal of time and potential mistakes. They will take care of filing your taxes, managing corporate procedures, and informing you about available incentives or financial aid.