Advice for Expats Looking to Work in Spain

Spain is renowned for its incredible climate, affordable living, healthy Mediterranean diet, friendly locals and its growing international community. And now with the possibility of working remotely being a reality for many professionals following the pandemic, there is no wonder that expats are flocking to live and work here.

Please keep in mind though that while the quality of life in Spain is rated highly, wages are low compared to other EU countries with a national minimum wage of 1000 Euros per month and an average annual income of 27,000 Euros (according to Expatica.com).

Unemployment is also high at 13.33% (Q4 2021 results provided by Statista) which means Spain has one of the highest unemployment rates out of the EU countries. For those of you hoping to move to Spain, we suggest that you already have a business in mind and are prepared to set up your own company or be self employed as the chances of finding employment with a Spanish company while on the ground here are slim, especially if you don’t speak Spanish.

Who can work in Spain? 

For those from an EU country, you automatically have the right to work in Spain. If you are from outside the EU, you will need to apply for a residence visa before you even consider moving.

What do you need to work in Spain? 

The first and most important document you will need to obtain is the NIE (Numero d’Identidad Extranjero). This is your personal identification number that you can apply for from the local police station, it’s printed on A4 white paper and doesn’t expire (we get asked this a lot!). A NIE number is also needed in the case of renting or buying a property, paying for utilities and opening a bank account.

For citizens from outside of the EU, you can find an overview of the long-term visa options available here.

Choose your business’s legal form

Once you have the legal right to live and work in Spain, you must then decide the legal form of your business and set it up. Here you have two main options:

1.     Register yourself as a sole trader in the form of “autonomo” (self-employed) or “empressa individual” (sole proprietor)

2.     Create a limited company “Sociedad Limitada” (S.L.)

Being an autonomo is the easiest and most cost- effective way to start doing business and it will also allow you a certain amount of flexibility. In the first year of being an autonomo, you will have to pay 60 Euros each month to be self-employed which then increases to 289 Euros per month in the third year.

Having a limited company is definitely the most difficult and expensive to set up and run with various requirements but it does have its advantages such as more favorable taxation and limited liability. There is the possibility to set up a limited company online which will cost you much less at 300 Euros (excluding notary fees) versus the traditional method which will cost you close to 3000 Euros. To use the online method, you will need to employ a lawyer registered to carry out the process, unfortunately it’s not something you can do yourself.

Social Security and Healthcare

Once you are living and working in Spain and your business is set up, you will be required to make social security contributions which will give you access to the public healthcare system and entitle you to free healthcare.

VAT

If you are self-employed or have a limited company, no matter how much or little you make, you will have to charge and pay VAT which is 21%. Some businesses are exempt such as teaching. For certain types of goods there are lower VAT charges between 10% and 4%.

You will be required to submit your tax returns each quarter as well as an annual return.

How can Encantada Help?

Navigating around the Spanish administration and legal system is not easy. We are a team of trained professionals, a Spanish lawyer and an English expat, here to take the stress away from your move to Spain. We can assist you with all your immigration paperwork, house hunting and even help find your children a school or nanny. We gurantee a professional, efficient and friendly (English, Spanish and French) speaking service. And if it’s not something we can do, with our network of trusted contacts, we will recommend professionals that can.

For assistance with your move to Spain, please don’t hesitate to contact us:

For general enquiries: steph@encantadaworld.com

For legal enquiries: maria@encantadaworld.com