Moving region or leaving Spain: what happens to your self-employment

Terms used

• IRPF — IRPF is Spain's personal income tax, which includes a regional part set by each region.
• Modelo 030 — Modelo 030 is the tax agency form for an individual to report a change of tax address.
• Modelo 036 — Modelo 036 is the tax agency census form for registering, changing or closing a business activity or address.
• Padrón — The padrón is the town hall's register of residents.
• Baja — The baja is your cancellation of registration in the self-employed Social Security scheme.
• A1 certificate — The A1 certificate shows you stay under Spanish Social Security while working temporarily in another EU country.

Key rules

• Region on 31 December: The region where you live on 31 December sets your regional income tax scale for the whole year.
• Leaving Spain: Leaving the country does not cancel your registration as self-employed; you must request it.
• Basque Country and Navarra: Moving to or from these territories changes your tax administration and its forms, but not your Social Security.
• Final returns: Closing your activity means filing final VAT and IRPF returns and the quarterly returns for the closing period.

Moving within Spain: mainly your income tax scale changes

Your self-employment carries on as it is. What changes is the regional income tax (IRPF) scale and deductions that apply to you. The region where you live on 31 December decides the scale for the whole year, so a move mid-year does not split the year. Your habitual residence is the place where you spend more days in the year (over 183, counting short absences).

Each region sets its own scales and deductions, so look at your new region's rules before you move.

Tell the right offices about your new address

• Tax agency: report a new tax address within one month. Individuals use modelo 030. Use modelo 036 for a change of business address. A new address can also mean a different tax office handles you.
• Social Security: report the change as a variación de datos within 6 days, through the Sede or Import@ss.
• Town hall: update your padrón registration at your new town hall. This is separate from the other two.

Moving to or from the Basque Country or Navarra

These territories run their own tax administrations, with their own income tax scales and forms. Moving in or out changes which administration handles your income tax, based on where you live on 31 December. Register or update your census with the new administration and use its forms and platforms.

VAT depends on where you carry out your operations and how much you invoice. If you work in both territories, your VAT may be split between them. Ask the tax administration concerned how this applies to your turnover.

Social Security stays the same: it is one state-wide system.

Leaving Spain: two separate decisions

Leaving the country does not cancel your self-employment. You must decide on your baja and on your change of tax residence.

Baja in the self-employed scheme

If you stop working in Spain, request your baja within 3 natural days after you stop. Use the Sede or Import@ss. On time, it takes effect on the day you stopped. Late, contributions keep accruing for the gap.

Then close your activity with the tax office using modelo 036 within one month. File your final VAT and IRPF returns, plus the usual quarterly returns for the closing period.

Working from abroad

If you move abroad and keep working, you generally cannot stay in the scheme. The exceptions come from EU social security rules. You stay under Spanish rules if you mainly work in Spain, or if you are posted to another EU country for up to 24 months with an A1 certificate. If you work in several EU countries and a substantial part of your work is in your new country of residence, that country's rules apply. Agreements with some non-EU countries may also apply. Social Security decides case by case.

Tax residence

Once you stop being a Spanish tax resident, you pay non-resident income tax on Spanish income. The year you leave is normally a resident year if you spent over 183 days in Spain, and your IRPF return covers the whole year. Report the change with modelo 030, or the address update in modelo 036.

Two special cases exist. If you move to a tax haven, you stay a Spanish tax resident for the year of the move and the next four. An "exit tax" can apply if you hold large shareholdings in companies. If either could apply to you, get tax advice before you go.

Use the timeline, documents and checklist below to follow the steps in order.

Choosing between options

Which tax rules will apply to you after you move?

• Move to another region of Spain: You move between regions under the common regime. The region where you live on 31 December sets the IRPF scale and deductions for the whole year, with no separate return.

• Move to or from the Basque Country or Navarra: You move to or from a territory with its own tax administration. Your IRPF goes to the administration of the territory where you live on 31 December, and you register with it and use its forms. VAT depends on where you carry out your operations and on your turnover.

• Leave Spain: You stop living in Spain. You must decide whether to close your self-employment, and you report your change of tax residence.

Your residence on 31 December decides the region for IRPF, and you count as living where you spend more than 183 days of the year. If you leave Spain, close your Spanish activity and returns as well as changing your tax residence.

Timeline and deadlines

• Report your new tax address to the tax agency with modelo 030 (modelo 036 for a business address): within one month of the move

• Tell Social Security about your new address as a change of data: within 6 days of the move

• Declare the end of your activity to the tax office with modelo 036: within one month of the end of the activity

• File the final VAT and IRPF returns and the quarterly returns for the closing period: after you stop working, for the closing period

• Keep your Spanish cover while working in another EU country under an A1 certificate: for a posting of up to 24 months

Documents you need

• Modelo 030, the tax agency form for an individual's change of tax address. Use modelo 036 instead for a change of business address.

• Updated registration in the padrón, the town hall's register of residents. Your new town hall handles it, separately from your tax and Social Security changes.

• A1 certificate, issued through Social Security, which keeps you under Spanish rules while posted in another EU country for up to 24 months. You need it only if you work abroad under a posting.

Checklist

• Check which region your home is in on 31 December, because that region's IRPF scale applies to the whole year.

• Check your new region's income tax scales and deductions, since each region sets its own.

• Report your new tax address to the tax agency with modelo 030, or modelo 036 for a business address.

• Tell Social Security about your new address through the Sede or Import@ss.

• Register with the new tax administration and use its forms if you move to or from the Basque Country or Navarra.

• Request your baja, declare the end of your activity to the tax office and file your final returns if you stop working in Spain when you leave.

• Decide on your change of tax residence and report it with modelo 030 or the address update in modelo 036 if you leave Spain.

Frequently asked questions

Does leaving Spain cancel my self-employment automatically?

No, leaving Spain does not cancel your self-employment automatically, because you have to close it yourself. Until you do, your registration stays open and contributions can keep accruing. Closing also means filing the final VAT and income tax returns and the usual quarterly returns for the closing period.

Can I stay in the self-employed scheme if I work from another country?

Generally no, you cannot stay in the self-employed scheme if you move abroad and work from there, but EU rules can allow it. You can stay if your activity is mainly in Spain, or if you are posted abroad with an A1 certificate for up to 24 months. Outside the EU, a bilateral agreement may apply, so ask Social Security.

Does my Social Security change if I move to the Basque Country or Navarra?

No, your Social Security stays the same, because it is state-wide and does not change with the region. Only your tax administration changes, along with its forms and platforms.

Will I still pay Spanish tax after I leave Spain?

Yes, you will pay Spanish non-resident income tax on any income you still earn in Spain.