Registering or invoicing before you move to Spain

Terms used

• RETA — RETA is Spain's Social Security scheme for self-employed workers.
• NIE — The NIE is the tax and identity number Spain gives to foreigners.
• TGSS — The TGSS is Spain's Social Security treasury, which registers workers and decides which country's social security applies.
• IRNR — IRNR is Spain's income tax for non-residents, charged on income earned in Spain.
• Modelo 036 — Modelo 036 is the form used to register for tax, including Spanish VAT.

Key rules

• RETA: You normally cannot join RETA before you live in Spain.
• NIE: A NIE lets you register for tax but does not give you the right to work.
• Spanish VAT: You usually do not register for Spanish VAT when invoicing Spanish businesses from abroad.
• Non-resident tax: You owe Spanish tax only on Spanish-source income, and business profits only through a permanent establishment.

The short answer

Most people can keep invoicing from abroad and wait to register until they arrive. Self-employed registration in RETA needs you to live in Spain and work from there, so you normally cannot do it before you move. Spanish VAT and non-resident tax only matter in some cases, covered below.

Can you register as self-employed before you move?

Probably not. RETA, the self-employed Social Security scheme, requires habitual residence in Spain and activity carried out in Spain. An EU citizen who still lives elsewhere normally cannot register early.

• EU citizens: you need a NIE. If you stay more than three months, you must also register as a resident.
• Non-EU citizens: a NIE does not give you the right to work. You need a work and residence permit before you can register as self-employed.
• Working in Spain while living in another EU country: EU rules decide which country's social security applies. You may need an A1 certificate. Ask the Spanish Social Security office (TGSS) to confirm your case.

Can you get a NIE before you arrive?

Yes, if you have an economic, professional or social interest in Spain. Having Spanish clients can count. Apply on form EX-15 at a Spanish consulate or at a police station in Spain. A NIE lets you register for tax. It does not let you work.

Do you need Spanish VAT while abroad?

Often no. Rules depend on who your client is.

• Spanish business clients: the client accounts for the VAT itself. You do not register for Spanish VAT.
• Business clients elsewhere in the EU: invoice without VAT. You may need to file an EU summary statement in your own country.
• Private customers in Spain, work on Spanish property, or goods located in Spain: you usually must register for Spanish VAT using Modelo 036 and file Spanish VAT returns. If you are outside the EU, you may need a fiscal representative.

Do you owe Spanish income tax while abroad?

Only on income earned in Spain. As a non-resident you pay tax on Spanish-source income, called IRNR.

• Business profits are taxed only if you have a permanent establishment in Spain. A fixed place of business or a dependent agent can create one.
• Services you perform outside Spain for Spanish clients are generally not Spanish-source income. Services you perform in Spain are taxable. So are some royalties and technical-assistance fees.
• Tax treaties usually limit Spanish tax to permanent establishments. To use a treaty, show a tax residence certificate from your home country.
• The general rate on net income is 24% for non-EU residents and 19% for EU/EEA residents.

What to do

1. Work out who your clients are and where you perform the work.
2. If you do not need Spanish VAT, keep invoicing from abroad.
3. Get a NIE if you need one for tax or to prepare your move.
4. Register in RETA once you live in Spain and, if non-EU, hold your permit.

The decision, timeline, documents, checklist and FAQ below set out the options and steps.

Choosing between options

Do you need to register for Spanish VAT or pay Spanish non-resident tax as a freelancer abroad?

• Invoice from abroad without registering: Your clients are Spanish businesses and you work outside Spain with no fixed place of business there. The client handles the VAT and your profits are generally not taxed in Spain.

• Register for Spanish VAT: You sell to private consumers in Spain, do work related to Spanish property or sell goods located in Spain. You register on Modelo 036 and file Spanish VAT returns, and non-EU businesses may need a fiscal representative.

• Pay Spanish non-resident income tax: You work through a permanent establishment in Spain, or perform services in Spain.

Selling to Spanish businesses from outside Spain means no Spanish VAT registration. Selling to private consumers or working in Spain means you register and may owe Spanish tax.

Timeline and deadlines

• Apply for a NIE if you have an economic, professional or social interest in Spain: before you move, at a Spanish consulate

• Register as a resident if you are an EU citizen staying in Spain: if you stay more than three months

• Register in RETA, the self-employed Social Security scheme: once you live in Spain and work from Spain

Documents you need

• NIE (foreigner ID number), applied for on form EX-15 at a Spanish consulate or a police station in Spain, with proof of your economic, professional or social interest in Spain.

• Work and residence permit, if you are not an EU citizen. You need it to register as self-employed with Social Security.

• EU citizen registration certificate (certificado de registro de ciudadano de la UE), if you are an EU citizen staying more than three months.

• Tax residence certificate from your home country, to show you are resident there under a double taxation treaty.

Checklist

• Check that you have an economic, professional or social interest in Spain to support a NIE application.

• Confirm whether you need a work and residence permit, which non-EU nationals need before registering as self-employed.

Frequently asked questions

Does a Spanish NIE let me work in Spain?

No, a NIE gives you a Spanish tax number but not the right to work. If you are not an EU citizen, you still need a work and residence permit before you can register as self-employed with Social Security.

Can I get a NIE if I do not live in Spain yet?

Yes, you can get a NIE as a non-resident if you have an economic, professional or social interest in Spain.

Do I need to charge Spanish VAT to Spanish business clients from abroad?

No, for services to Spanish business clients the client accounts for the VAT itself, so you do not need to register for Spanish VAT.

What income tax rate applies to a non-resident freelancer in Spain?

The general non-resident income tax rate is 24% on net income for non-EU residents and 19% for residents of the EU or EEA. It only applies to business profits if you work through a permanent establishment in Spain, such as a fixed place of business.