How to Become a Contractor When you Relocate to Spain ?

Have you ever thought about moving to Spain and working as a contractor?

You’re not alone. Freelancing in Spain has become a hugely popular choice for self-employed professionals who want to enhance their career and enjoy a better quality of life.

The latest figures from Statista, as reported by Forbes, show there are 3.2 million freelancers in Spain today. This puts it in the top 10 fastest-growing countries for freelance work.

As newcomers look to enter the Spanish remote work market, particularly within freelance , understanding the dynamics at play is essential.

In this article we will look at the opportunities available in Spain for freelancers, as well as some of the challenges you may face – such as finding consistent work.

Let’s dig in.

Choosing the Right Freelancing Path in Spain

In Spain, there are several ways to set yourself up as a freelancer – each with its own set of benefits, rules, and tax implications etc.

It’s crucial to understand these options so you can make a choice that fits your career, lifestyle, and how long you plan to stay in Spain.

Autónomo Status

In Spain, contractors and freelancers often pursue the autónomo status, which is equivalent to being self-employed or a sole trader in the UK. This status allows  you the freedom to serve multiple clients and independently manage your workload. 

Alongside the benefits of flexibility, being an autónomo entails certain obligations, such as registering with the Spanish tax authorities, contributing to social security, and submitting monthly or quarterly VAT and income tax returns. It’s important to note, however, that autónomos are ineligible for benefits under the Beckham Law, a point we will delve into further in the article.

Using a Foreign Company for periods shorter than six months

Contractors planning to stay in Spain for under six months, or those with a registered company abroad, might choose to work through their foreign entity while in Spain. This can make tax processes easier, but it’s crucial to consult a tax advisor familiar with both Spanish and the relevant foreign tax laws. This ensures compliance and tax efficiency.

It’s important to note that choosing this route as a contractor means you are not considered a local tax resident if your stay is under six months. As a result, you may have trouble accessing local services like social security benefits and might find it difficult to open bank accounts, rent apartments, and integrate into the local community.

Thorough planning and professional advice are essential before you start any contractual work in Spain.

The good news is Hightekers simplifies all of this by guiding the selection and setup process, handling legal and tax formalities, and offering continuous compliance support. We make the transition smoother and allow you to focus on growing your freelance business.

Working as a contractor in Spain with a Management Company

Operating as a contractor or freelancer in Spain can be challenging due to the country’s legal and tax requirements, especially for foreigners who aren’t familiar with Spanish bureaucracy.

Hightekers is a company that helps freelancers and tech pros navigate these complexities. We handle important tasks and legal paperwork, letting you focus on your work. We also help you stay compliant with local laws while taking care of taxes – including optimising your tax efficiency.  

We can help with practical matters too like opening bank accounts and finding accommodation, making the process of relocating to, and working, in Spain less stressful.

Facilitating Your Transition: How Hightekers Simplifies The Beckham Law Process

The Beckham Law, named after the famous footballer David Beckham who was among the first to benefit from it, is a Spanish tax regulation designed for foreign employees working in Spain. It offers a significant tax advantage for  those who relocate to Spain for employment purposes. 

Let’s take a look at some of the benefits:

Fixed Income Tax Rate: Eligible individuals can opt to be taxed at a flat rate of 24% on their income up to €600,000, rather than the progressive tax rates that can go up to 47% for residents. This is considerably lower for high earners compared to the standard income tax rates for Spanish residents.

Exemption on Worldwide Income: Under the Beckham Law, expatriates are taxed only on their Spanish-sourced income. This means income from outside of Spain is not subject to Spanish income tax, which can lead to significant tax savings for individuals with investments or business activities abroad.

Duration of the Benefit: The tax benefits under the Beckham Law can be applied for up to 6 years, including the year of relocation and the following five years.

Hightekers play a key role in simplifying the Beckham Law for freelancers. By offering local contracts, we enable contractors to attain employee status, which is crucial for qualifying for the Beckham Law.

We also support you with guidance on determining your eligibility, navigating the application process, and maximising tax advantages – all while ensuring adherence to Spanish tax regulations.

On top of this, we handle important tasks like tax filings, legal paperwork, opening bank accounts, and finding accommodation. Partnering with Hightekers not only helps freelancers access the Beckham Law benefits, but also ensures a smoother transition to living and working in Spain.

Achieving Freelancer Status in Spain – Independently vs Management Company

Moving to Spain as a  contractor and choosing the autónomo status requires handling several administrative tasks on your own. First, you need to get an NIE (Número de Identificación de Extranjero), an identification number necessary for all financial and legal activities in Spain.

Next, you’ll have to register with the Spanish Social Security System to contribute to services like healthcare and pensions. Additionally, you must comply with tax obligations, including registering for VAT and income tax with the Spanish Tax Agency (Agencia Tributaria). This process demands a good understanding of the Spanish legal and tax systems and can be quite complex and time-consuming.

For freelancers who want to avoid these complexities, Hightekers offers a straightforward alternative. We take care of all essential procedures, including getting the NIE, registering with the Spanish Social Security system, and handling tax registrations.

By taking over these tasks, Hightekers allows you to stay focused on your work while ensuring all legal and tax requirements are met efficiently. This approach not only makes the transition to freelancing in Spain quicker and easier but also provides peace of mind that everything is being managed correctly.

This clear comparison helps freelance pros decide whether to navigate the process independently or use Hightekers for a smoother transition to living and working in Spain.

Streamline your freelancing business in Spain with Hightekers

Spain is a vibrant country, highly attractive to self-employed professionals in the IT and tech industries. It offers a welcoming environment, rich culture, and opportunities for a balanced lifestyle, making it a great place for freelancers. However, the bureaucratic and administrative processes can be challenging, particularly for newcomers.

To set yourself up as a contractor in Spain, there are several personal and professional steps you need to take.

First, you must obtain legal residency in Spain by getting the NIE (Foreigner Identification Number), which is used for financial and legal transactions. This is especially important for non-EU nationals planning to live and work in Spain.

Hightekers can help with this. We offer full support to help freelancers handle the administrative tasks of setting up and running your business. From legal registrations to tax advice, Hightekers makes it easier for you to concentrate on delivering great services to your clients.

Whether you’re thinking about moving to Spain to freelance or you want to improve your current setup, Hightekers can provide the support you need for success.

Get in touch and boost your freelance career today