When I started working as a freelancer in Spain, I came across a lot of unfamiliar terms while researching how to do this legally. The good news is that if you do digital work like I do, you can handle most of the process online. I used Xolo, the platform I mentioned in my previous post. If you have residence and work authorisation in Spain, you can register as self-employed (alta de autónomo), issue your invoices (facturas) and send questions to your digital accountant in writing, all from the same platform. Since I was already registered with Cl@ve, the only thing I had to do in person was an identity check at the city council (Ajuntament) to get my digital certificate (certificado digital).
Both when I started living in Spain and when I registered as a freelancer, certain terms kept coming up. Getting familiar with them, and learning them in Spanish, can be especially helpful when you need to handle something in person. Here are the 25 terms I came across most often.
Identity and residence
- NIE (Número de Identidad de Extranjero): The identification number issued to foreigners. You’ll need it for banking, taxes and contracts.
- TIE (Tarjeta de Identidad de Extranjero): The physical card showing your residence permit.
- Empadronamiento / padrón: Registering your address with the city council. Many procedures require a “certificado de empadronamiento”. When I went to register, nobody there spoke English, so I had to handle everything in Spanish. Luckily, I had prepared a bit beforehand. Practising a few basic phrases before your appointment makes things much easier.
- Cita previa: Appointment. Most public offices only handle procedures by appointment, including the identity check for your digital certificate.
- Sede electrónica: The online portal of a public institution.
- Certificado digital: Digital certificate (e-signature). You apply online, then go in person once to verify your identity. I did this at the city council. Once you have it, most procedures can be done online.
- Cl@ve: The government’s online identification system and an alternative to the digital certificate. You need to go in person with your residence permit and proof of address to get your credentials. It also makes things easier for procedures like exchanging your driving licence.
Taxes and social security
- Agencia Tributaria (Hacienda): The tax agency. In everyday language, people usually just say “Hacienda”.
- Seguridad Social: The social security system.
- Alta de autónomo: Registering as self-employed. Your registration with Hacienda and Seguridad Social, and your alta de autónomo, can all be done online through platforms like Xolo.
- Modelo 036: The form you use to notify the tax agency that you’re starting an activity.
- Epígrafe IAE: Activity code, the classification that describes what kind of work you do.
- RETA: The social security scheme for self-employed workers.
- Cuota de autónomo: The monthly social security contribution.
- Tarifa plana: A reduced contribution for new freelancers during their first period.
- IVA: VAT. The standard rate is 21%.
- IRPF: Personal income tax.
- Retención: Withholding tax applied to the invoices you issue to companies.
- Modelo 303: Quarterly VAT return.
- Modelo 130: Quarterly income tax prepayment.
- Declaración de la renta: Annual income tax return.
Day to day business
- Gestor / gestoría: An advisor who handles accounting and administrative procedures. With digital gestor services, you can send your questions online.
- Factura: Invoice. In Spain, invoices must include certain mandatory details. Issuing them through a platform makes this much easier.
- Domiciliación: Direct debit. Contributions and taxes are usually paid from your bank account this way.
- Baja: Deregistration. The opposite of alta, used when you stop your activity.
A final note
This list may look long at first, but don’t let the process intimidate you. If you do digital work, you can complete most of the steps online, at your own pace.