Choosing the right activity code (epígrafe) for your work

Terms used

• Epígrafe — The epígrafe is the tax-office category number that describes your activity in the IAE tariffs.
• IAE — The IAE is Spain's business activities tax list, which classifies activities into business, professional and artistic sections.
• CNAE — The CNAE is the national statistical code for your economic activity, also requested on the census form.
• IRPF — The IRPF is Spain's personal income tax; withholding is an advance payment of it taken from your invoices.
• RETA — The RETA is the Social Security scheme for self-employed workers.
• Modelo 036 — The modelo 036 is the census form used to register, change or end your activity with the tax office.
• Modelo 130 — The modelo 130 is the quarterly income tax advance payment filed by many self-employed professionals.
• Modelo 303 — The modelo 303 is the quarterly VAT return.

Key rules

• Real activity: Choose the epígrafe and CNAE that match the work you really do, because they drive withholding, VAT and filings.
• Several activities: You can declare several activities on one census declaration, each with its own epígrafe and CNAE.
• Withholding: Professional (section 2) invoices to Spanish businesses generally carry 15% IRPF withholding, or 7% in your first three years.
• Quota: Your activity code does not set your Social Security quota; your declared net income bracket does.

Pick the code that matches what you really do

Choose the code that describes the work you actually do, not the one that looks cheapest or simplest. The code decides whether your invoices carry withholding, which VAT treatment you get and which quarterly filings you make. Changing it later means a correction with the tax office, so get it right the first time.

The census form asks for two codes:

• An IAE epígrafe, the tax-office category for your activity.
• A CNAE code, a statistical code for the same activity.

There is no strict one-to-one match between them, but the tax office's guidance links them. Pick the epígrafe first, then the CNAE that fits it.

The three IAE sections

The IAE tariffs split activities into three sections:

• Section 1: business activities. Trading, crafts, hospitality and similar work.
• Section 2: professional activities. Services based on your qualifications or expertise, such as consulting, programming or translation.
• Section 3: artistic activities. Performers, artists and similar work.

The decision below helps you choose between them.

Examples

These are typical matches. Check the exact epígrafe against the current official tariff before you register.

• Software consultant: IAE 763 (computer professionals) or 849.x.
• Translator: IAE 774 (translation).
• Graphic designer: IAE 844.
• Programming: CNAE 62.01.

What the code changes

Withholding. With a professional code (section 2), invoices to Spanish businesses generally carry IRPF withholding. The standard rate is 15%, and 7% for your first three years. Business activity (section 1) invoices usually carry none.

VAT. Some activities, such as health or teaching, can be VAT-exempt, depending on the activity. If you have several activities, different VAT regimes can apply to each.

Filings. Professionals normally use direct estimation and file quarterly modelo 130 and modelo 303. Some business activities may use modules instead.

Social Security quota. Your code does not set your quota. It depends on the net income bracket you declare.

Registering more than one activity

If you do different kinds of work, declare each one. You can list several activities on the same census declaration, each with its own epígrafe and a CNAE code.

You need only one RETA registration (the self-employed Social Security scheme), with one main activity. If you start another activity later, add it with a modification declaration, modelo 036.

Example: you translate (section 2) and also sell products you make (section 1). Declare both so each is taxed correctly.

Before you submit

1. Write down everything you will invoice for in your first year.
2. Match each item to an epígrafe and a CNAE code.
3. Check the matches against the current official tariff, or ask a gestor (a professional who handles tax paperwork).
4. Make sure the start date is the same everywhere you register.

The warning below lists the registration mistakes that cost newcomers money, and the FAQ answers common questions about codes.

Choosing between options

Which type of activity code fits the work you do?

• Professional activity (IAE section 2): Your work is a skilled profession, such as a software consultant (epígrafe 763 or 849.x), translator (774) or graphic designer (844). Invoices to Spanish businesses generally carry IRPF withholding (Spain's income tax): 15% as standard, 7% for the first three years.

• Business activity (IAE section 1): Your work is trade or commercial activity rather than a profession. Invoices usually carry no IRPF withholding, and some business activities may use the modules system.

• Artistic activity (IAE section 3): Your work is artistic. Choose this section only if the tariff lists your activity there.

• Several codes at once: You do more than one kind of work. Declare each one with its own epígrafe and CNAE code in the same census declaration.

Choose the code that matches the work you really do, and add a separate code for each distinct activity. The code drives withholding and VAT treatment, so do not pick one just because it looks cheaper.

Registration mistakes that cost newcomers money

• Choosing the wrong activity code: The wrong code can change how you invoice. A professional code usually means invoices to Spanish businesses carry IRPF withholding (income tax kept back by the client): 15% as the standard rate, 7% for the first three years. Business activity codes usually carry none. Some activities, such as health or teaching, can be VAT-exempt. A wrong code can also put you in the wrong tax regime and filing routine. Match the code to what you actually do before you register. If two codes fit, add both. Ask the tax office or a gestor if you are unsure.

• Forgetting regimes and quarterly filings: Professionals use direct estimation and file modelo 130 (income tax) and modelo 303 (VAT) every quarter. Skipping these filings leads to penalties. Your Social Security quota depends on your declared net income bracket, not on your code, and the reduced quota does not apply automatically. Put the quarterly filing dates in your calendar from day one, and apply for the reduced quota yourself.

• Mismatched start dates: If your tax registration (modelo 036 or 037) and your Social Security registration show different start dates, you can face queries, back charges or a lost reduction. Missing the registration window with Social Security makes it worse. Use the same start date in both registrations and follow the registration order and alta window set out in the other guides.

• Working before you are registered: Working without self-employed registration is an infringement. Social Security can register you automatically, charge unpaid contributions with a surcharge and interest, and the Labour Inspectorate can fine you. Late registration also loses the reduced-fee schemes. Do not issue your first invoice until both registrations are complete. Also hold a valid work authorisation first, and get a digital certificate or Cl@ve so you do not miss official notifications.

Frequently asked questions

Can I register more than one activity code?

Yes, you can declare several activities in the same census declaration, each with its own IAE epígrafe and a CNAE code. You still need only one Social Security registration (RETA), with one main activity.

Does my activity code change my Social Security quota?

No, the Social Security quota does not depend on your activity code. It depends on the net income bracket you declare. The code matters more for tax: withholding, VAT and which quarterly forms you file.

Do I need both an IAE epígrafe and a CNAE code?

Yes, the census form asks for both. The IAE epígrafe is the tax tariff heading, and the CNAE is a statistical code. There is no strict one-to-one match between them, so pick each for the work you really do. For example, a translator would use IAE 774, and programming work would use CNAE 62.01.