Spain has one of the highest numbers of freelancers in Europe. Technological advances have made more Spaniards interested in working as freelancers or autonomos, as they are referred to. Citizens have jumped on the digitalization cruise, creating self-owned businesses.
Entrepreneurs are on the rise. Freelance in Spain is huge, and Spanish freelancers offer services you would never imagine finding in Spain. Go to the Spanish review site opinionesespana to learn more about Spanish freelances and their kind of services.
Some freelancers run companies that help to connect people like them. A company like Meetup helps connect people to people who share the same interest or hobbies. Becoming a successful freelancer in Spain requires complete knowledge of whatever service you offer. People tend to follow others without realizing they need passion first for anything they wish to venture into.
Possessing a certificate is an advantage too. There are two sides to being a freelancer in the country. This is what we are going to examine below.
Pros and Cons of Being A Freelancer In Spain
· Pros
1. Flexibility
Just like it is with all entrepreneurs, you choose what time you arrive at your office and how you spend your entire day. As sweet as this may sound to the ears, it still takes a lot of time to get the proper documentation to start your business legally in the country. You need to register for an NIE – Number Identification de Extranjeros. The process of setting up a business in Spain is quite expensive.
2. Price Decision is Up to You
You decide on the price you are willing to offer your service to people. Depending on how much work you will do for the client. The downside of this is that you are charged hugely for social security fees regardless of how much you earn monthly with the tax laws in place. This adds up to your running costs.
The social security fee covers the autonomos for healthcare and pension, unemployment and sick leave. The waitlist for health care processing is discouraging because of the large amount of time it takes to process your papers. The pension scheme is also affected by this same waitlist. Better to get private services to augment what you have with the government.
· Cons
3. VAT Charges
If you are a business owner in Spain, you are required by law to pay a 21% VAT or IVA( Impuesto Sobre el Valor Anadido) on earnings from EU customers. You must be charged this percentage regardless of how much you earn yearly. In 2015 it was passed into law that digital creators must also charge IVA on EU customers.
4. Social Security Fee Payment is Constant
If a sickness or injury affects your ability to work, you still have to pay the monthly social security fees. And the system doesn’t cover you for disability or death.
Living in Spain is expensive for freelancers. This is because of the heavy tax laws and loads of paperwork to get registered for business. The government really doesn’t care if you work well or not. There is no consideration that there would be days of no work where the entrepreneur will have to go home empty-handed.