Clients, contracts and late paymentArticle 5 of 7 · 4 min read
Relying on one main client: economically dependent freelancers (TRADE)
If one client pays most of your income, you may count as an economically dependent freelancer. This page explains when that applies, what the written contract must say, the protections you get and the duties you take on. It is for self-employed workers in Spain.
Key rules
- Income share: You count as economically dependent (TRADE) when at least 75% of your income comes from a single client.
- Written contract: A TRADE contract must be in writing and registered with the public employment service within 10 working days of signing.
- No employees: You cannot have employees or subcontract work and still qualify.
- Ending early: A client who ends the contract without a justified reason owes you compensation.
Do you count as a TRADE?
You are a TRADE when at least 75% of your income comes from a single client. That counts income from work and from economic or professional activities. The "client" is the person or company that contracts you.
The income share is not enough on its own. You must also meet these conditions:
- You have no employees and you do not subcontract any part of the work, for this client or any other.
- You do not work in the same way as the client's employees.
- You have your own equipment and premises or tools, needed for the work and not only for this client.
- You organise the work yourself, following only the client's technical guidance.
- You are paid for results, and you carry the risk of the activity.
Some people are excluded, such as those who run a shop open to the public or a professional office, and partners in companies. If one of these applies to you, check with a gestor or Social Security before relying on the status.
What the contract must look like
The contract must be in writing and must say that you are a TRADE. Before signing, tell the client about your status and give proof of your income share. Without a written contract and registration, the status is not formally recognised.
The contract must be registered with the public employment service within 10 working days of signing. The client usually does this and the service then informs you. Ask the client to confirm it was done.
You must also report the status to Social Security through the RETA, and update it if your conditions change. The timeline and checklist below give the order.
What protections you get
- Rest: You get 18 working days of paid-equivalent annual rest. The period is set by agreement with the client.
- Working time: You have a limited working-time regime. The cap on hours is set by agreement, and extra hours are limited.
- Ending the contract: The client needs a justified reason to end it. Ending it early without a reason or a breach by you means the client owes you compensation for damages.
- Notice: The notice period comes from your contract or a professional agreement. If neither says, good faith applies.
- Disputes: They go to the labour courts.
What you owe in return
If you end the contract without a valid reason, you may owe the client compensation. Read the notice and termination clauses before you sign.
If you have several clients and none gives you 75% of your income, this status does not apply to you. You are an ordinary freelancer.
Timeline and deadlines
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Tell the client you are a TRADE and give proof of your income share: before signing the contract
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Sign the written contract stating you are a TRADE: after the client has your proof
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Report the status to Social Security and update it if conditions change: when your situation changes
Documents you need
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Written TRADE contract that states you are a TRADE, signed with your main client
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Proof that at least 75% of your income comes from that client, to give the client before signing
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Registration of the contract with the public employment service (SEPE), which the client generally handles and the SEPE confirms to you
Checklist
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Gather proof that at least 75% of your income comes from one client
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Tell your client you are a TRADE before you sign
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Sign a written contract that states you are a TRADE
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Make sure the contract is registered within 10 working days of signing
Frequently asked questions
Can I still be a TRADE if I have a few employees?
No, a TRADE cannot employ workers or subcontract any part of the activity, either for the main client or for others. Shop owners, people with open professional offices and company partners are also excluded.
What happens if my client ends the contract without a reason?
Your client needs a justified cause to end a TRADE contract, and ending it early without cause or breach gives you a right to compensation for damages. The notice period is set by your contract or professional agreement, or by good faith if neither sets one.
Do I get holidays as a TRADE?
Yes, a TRADE has 18 working days of annual rest, and the period is set by agreement with the client.
Where do I take a dispute with my main client?
Disputes go to the labour courts, known as the social jurisdiction. This also applies if you end the contract without cause, since you then owe compensation.
More in Clients, contracts and late payment
- Finding your first clients in Spain as a newcomer
- How Spanish clients actually pay: terms, approvals and August
- What to put in a Spanish freelance contract
- Deposits and milestone payments to reduce unpaid-work risk
- Late payment law: maximum payment terms and interest owed to you
- Chasing an unpaid invoice from reminder to formal demand
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