Autonomo vs PYME: Which Path Should You Take in Spain 2024?

Autónomo

Overview

Advantages

Disadvantages

Administration

To register as self-employed in Spain, the first step is to register in the Special Regime for Self-Employed Workers (RETA), a free procedure that involves paying the self-employed fee. The flat rate for the first year is approximately 80 euros per month, while the standard fee is around 300 to 320 euros per month, depending on income and bonuses. This procedure can be done on the same day. It is also necessary to register with the Treasury using form 036 or 037, a free and immediate process if done online, or which may take one or two days if done in person.

Other aspects to consider for the self-employed include civil liability and accident insurance, which can cost between 150 and 500 euros per year depending on the type of activity. Accounting and tax advice is another recurring expense, with an approximate cost of 50 to 150 euros per month.

Example

A graphic design freelancer might face initial registration costs in the RETA and the Treasury for free, with a self-employed fee of 80 euros per month during the first year under the flat rate. The costs of accounting advice would be 50 euros per month, and the total time to complete all the procedures would be less than a week. Additional annual costs, including insurance and software, would be approximately 300 euros.

PYME

Overview

Advantages

Disadvantages

Administration

To open a company in Spain, one of the first steps is to choose the appropriate legal form. The Limited Company (SL) requires a minimum share capital of 3,000 euros, which can be in cash or assets. Notary and registration fees usually range between 500 and 1,000 euros, and the process can take between one and four weeks. On the other hand, the Public Limited Company (SA) needs a minimum share capital of 60,000 euros, with at least 25% paid up at the time of incorporation. Notary and registration fees for an SA are usually higher, around 1,000 to 1,500 euros, and the process can take between two and six weeks.

Among the administrative procedures necessary to establish a company, is the reservation of the name in the Commercial Registry, which costs approximately 13 euros and can take one or two business days. Next, it is necessary to open a bank account and deposit the share capital, a procedure that depends on the bank and generally takes one or two business days. Obtaining the Tax Identification Number (NIF) is free and may take one to two weeks. The public deed of incorporation, another essential step, has a notarial cost of approximately 150 to 300 euros and can be completed in one or two days. Finally, registration in the Commercial Registry costs between 250 and 350 euros and usually takes one or two weeks.

Additionally, other expenses must be considered such as licenses and permits, the cost of which varies depending on the type of activity and location, and may require more time depending on the city council. Legal and accounting advice is also important, with an approximate cost of 50 to 150 euros per month.

Example

A digital marketing company (SL) would need a share capital of 3,000 euros, with notary and registration costs of 800 euros and a total time of approximately three weeks to complete all the procedures. In addition, it would have additional annual costs of around 1,000 euros for licenses, advice, and insurance.

Conclusion

Choosing between being Autónomo or establishing a PYME in Spain depends on your business goals, risk tolerance, and resources. Each option offers unique benefits and challenges. Whether you need flexibility and simplicity or are aiming for growth and structure, understanding these differences is crucial.

At Entre Trámites, we offer personalized consultations to help you navigate these decisions. As a member of the Club GLOBALS community, you can benefit from our free 30-minute consultations with our specialists. We’re here to support you every step of the way, from initial setup to ongoing management.

Contact us today to schedule a complimentary consultation and take the next step in your entrepreneurial journey!