Self-employment is the state of working for oneself rather than an employer. Generally, tax authorities will view a person as self-employed if the person chooses to be recognised as such, or is generating income such that the person is required to file a tax return under legislation in the relevant jurisdiction

A sole proprietor or self-employed individual is called an 'Autónomo' in Spain. It is where you accept personal liability for your business. Tax is paid through the personal Spanish income tax system.

Self-employed individuals in Spain have to pay: Personal Income Tax (IRPF). This is paid quarterly, once you have declared your income from your professional activity and deducted your expenses. From that amount, you'll pay 20% personal income tax.

Autónomo is the tax and social security regime for self employed workers in Spain. You join the regime if you are for example a sole trader, freelance consultant, running an unincorporated business, or small to medium sized company.

For the autonomo registration, you need a national insurance number for Spain (An NIE) and a Spanish bank account. If you're from outside the EU you will also need a work permit or residency visa. The form should be accompanied by proof of identity, usually, your passport and you will need to provide your NIE number.

The typical practice for attaining Autónomo include:
1. Register your business with the Agencia Tributaria.
2. Register with the Tesorería de la Seguridad Social.
3. Get yourself a good private health insurance.
4. Get yourself the correct legal advice for contracts and liability issues.

The process of gaining Autónomo involves registering your business with the Spanish tax authority (Agencia Tributaria) and registering with the Spanish Social Security System (Tesorería de la Seguridad Social).

With our Autónomo service we require all the relevant documentation to ensure that we make the necessary checks on the status of the residency. As standard, we ensure that the client has legal residency in Spain.

Our Spanish consultants have wide expertise in self-employment and residency matters. We always maintain contact with clients throughout the attainment of residency and self-employment fulfilment, while providing recommendations that better suit your needs.

Utilising PSI Consultants to help initialise your career will be an effective solution for you, as we use the vast experiences and practices that we have developed since 2002.

We have firm connections and work closely with local estate agencies in and around the Costa Blanca area. Allowing us to help you discover relevant business opportunities that suit your needs.

Over the many years that we have provided this service, we have had to adapt to current requirements for applying for residency in Spain and self-employed work. This further aids our clients in deciding how best to act.

Furthermore, we help with, legal and tax advice, using Power of Attorney, obtain an Identification Fiscal Number (NIE), Liaise with your Spanish bank, schedule appointments for bank and Notary, fill and pay all appropriate taxes, fill & pay Land Registry with Notary payments, transfer contracts with electric and water suppliers and organise IBI tax payment.

A company formation is the process of registering a business as a limited liability company (Sociedad Limitada S.L.) or joint ownership (Comunidad de Bienes C.B.). As a result, the business becomes a distinct legal entity. The process is also referred to as ‘company registration’.

A company acts as an 'individual' that is completely distinct from its owners and responsible for its own finances, assets and liabilities.

Taxation: corporate taxation, VAT, local taxes Taxation: corporate taxation

The obligations of a limited liability company, include:
• Leagality: Register the company and obtain a NIF (Número de Identificación Fiscal) number. • Taxation: Pay corporate taxation, VAT and local taxes.

The obligations of a co-ownership company, include:
• Leagality: Create a partnership agreement and isgn between all owners. • Taxation: Pay IAE tax (Impuesto de Actividades Económicas), VAT and local taxes.

The main features of a limited liability company, include:
• Usual format for small and medium businesses.
• Minimum share capital is €3,000, all paid up.
• Minimum number of shareholders is one.
• Annual audit is not usually required. However, there is an annual account.

The main features of a co-ownership company, include:
• Usual format for small and medium businesses.
• There is no minimum share capital, but there are goods.
• Minimum number of shareholders is two.
• Annual audit is not usually required. However, there is an annual account.

To set up a limited liability company, you will need:
• Research, apply and register the company’s name.
• Open a Spanish bank account.
• Draft Articles of Association.
• Sign Public Deed.
• Register Public Deed.
• Obtain a NIF (Número de Identificación Fiscal) number.
• Complete required form paperwork.

To set up a co-ownership company, you will need:
• A partnership agreement (contrato de constitución) will need to be drawn up by the members stipulating the amount contributed by each partner.
• Register to pay IAE tax (Impuesto de Actividades Económicas).
• Register a declaration for starting a business (Declaración Censal de Inicio de Actividad).
• Register for social security.
• If there are business premises, the person must apply for an opening licence (Licencia Municipal de Apertura) at the Town Hall.

At PSI Consultants, we will provide an in-depth service that will help you select a business model that works best for you in the current situation, while building the business from scratch or moving from an other country in to Spain.

We take the responsibility in analysing the best opportunities that a business can take in order to better perform and strive. Moreover, our consultants will advice the clients throughout the service in the best business practices.

Clients will benefit from utilising our company formation service as we will take a hands on approach to guiding the owners & their business. We make sure that your business utilises the correct type of entity at the current time, and hat the setting up process is streamlined while stress-free.

In addition, we can be of help with registering any other workers you may have with the social security office and the preparation of the business permit if you have an office or business premise.

Accounting is the comprehensive recording of financial transactions pertaining to a business, while also helping to organise resident & non-resident tax payments. The process utilises bookkeeping on a day-to-day basis, of the financial transactions and information pertaining to a business. It ensures that records of the individual financial transactions are correct, up-to-date and comprehensive.

Additionally, accounting is one of the key functions for almost any business. The financial statements that summarise a large company's operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period.

A new or an established business has to maintain an accounting report in accordance with the Spanish accountancy laws. Another obligation is the declaration of taxes monthly or quarterly depending on the size of the business.

For clients seeking to live or retire in Spain, it is worth using an accounting service to better manage your cashflow and limit unnecessary expenses & tax payments.

With most legal & fiscal services in Spain, you will need to provide details of yourself and other partners involved in property ownership of the Spanish property, but also for any business in Spain. Typically you will need to provide details of the passport and NIE.

We will provide a personalised service that better suits you and your business, and in your own language. Upon the business generating enough profit, specific taxes will need to be paid.

We will concentrate in helping you run your business & fiscal obligations more efficiently and in accordance with Spanish business laws.

The accounting department in PSI Consultants has the responsibilities in advising residents in Spain about the different ways to reduce their tax burdens. We provide expert assistance in how to better manage expenses and incomes.

Also, we help business owners by offering all the services regarding labour matters and work contracts. We can also calculate the wages every month; prepare the payslips, and all other necessary work to comply with the labour regulations.

Clients will be provided with professional accountants and fiscal representatives who will guide your business and personal accounts in compliance with all the fiscal obligations. From the tax registration and accountancy services to the preparation and filing of all the tax forms.

Additionally, our high quality accounting service is competitive with a high standard of satisfaction. Clients are best served by a professional who can fluently speak their language and who has the qualifications and expertise to represent them.