Expats: How to Become Self-Employed in Spain

Navigating the journey of becoming self-employed in a new country can be both exciting and challenging, especially for expats in Spain. 

Quick takeaway: Becoming self-employed in Spain as an expat requires understanding tax residency, autónomo requirements, Beckham’s Law eligibility, and how foreign assets impact your taxes. With the right guidance, the process is manageable — and surprisingly fast when handled by experts.

Starting your freelance journey in Spain is exciting, but the combination of new laws, foreign tax rules, unfamiliar documents, and registration steps can feel overwhelming. This guide breaks down the essentials: when tax residency begins, who qualifies for Beckham’s Law, what to do with foreign-owned property, and what happens to income earned outside Spain once you open an autónomo. Whether you’re planning your move or already settling in, these insights will help you stay compliant and confidently build your business.

When Does Tax Residency Begin in Spain?

It’s important to know when you need to begin considering your newfound tax residence. Understanding and meeting these criteria is how you get ahead of the game. You may find that you do not need any extra steps.

Spanish tax residency typically begins when you meet one of the following criteria:

• You spend more than 183 days in Spain during the calendar year.
• Your primary economic interests or activities are in Spain.
• Your spouse and/or minor children reside in Spain.

Check a few of these examples and you may just discover your tax residency is up-and-coming or that now is the time:

• You arrived in Spain at the end of February.
• Your nomad visa approval is at the end of March.
• Your residence permit card was received in early June.

Your tax residency generally begins either when you surpass 183 days in Spain or from the time you establish primary economic interests there (e.g., through substantial business activities). Opening an IP (individual business) itself does not determine the start of tax residency but can be part of establishing your economic ties to Spain.

Understanding Beckham’s Law as an Autónomo

Beckham's Law is designed for employees, but recent changes have extended it to include some self-employed individuals (autónomos). To qualify for this in Spain, specific conditions must be met, such as:

• You carry out an economic activity considered "entrepreneurial", i.e., you must be in possession of an ENISA report in this respect.
• You are a highly qualified professional who provides services to an entity considered an "emergent" Spanish start-up company (the company should be able to prove this "emergent" and technological status with an ENISA report) or develop research, training, development, or innovation activities aimed at this type of entity.

While there is a growing trend to include more remote and digital nomad workers under Beckham's Law, acceptance as an autónomo on a Digital Nomad Residency is less straightforward and would depend on meeting the specific criteria and the interpretation by the Spanish tax authorities.

Opening an Entity in Spain: Impact on Foreign Income

If you open an entity in Spain, your worldwide income becomes taxable in Spain from the time you become a tax resident. There are two times throughout the year you should take note of:

• At the Beginning of the Year: If you open an entity at the beginning of 2024 and become a tax resident, your global income for the year, including income from another country, will be subject to Spanish tax laws.
• In the Middle of the Year: If you open an entity in the middle of the year and have already spent more than 183 days in Spain or established economic interests, you would still be considered a tax resident for the entire year. Thus, your income for the whole year, including that from another country, would be taxable in Spain.

Becoming self-employed in Spain as an expat involves understanding tax residency rules, possible eligibility for Beckham’s Law, and how foreign income or property affects your obligations. While the process can feel complex, the right support makes it simple and safe.

Xolo helps you register as autónomo for free, manage taxes, invoice clients worldwide, and stay fully compliant from day one.

👉 Start your Spain freelance journey with Xolo today.

Frequently Asked Questions

Q1: Do I become a tax resident immediately after receiving a Digital Nomad Visa?
No. You become a tax resident only after spending 183+ days in Spain or establishing economic interests.

Q2: Do I pay Spanish taxes on income earned before becoming autónomo?
Yes. Once considered a tax resident, Spain taxes your worldwide income for the full year.

Q3: Does the timing of my move affect tax residency?
Yes. Moving later in the year may keep you below 183 days, delaying tax residency until the next year.

Q4: Do I need to declare foreign property?
Yes. Tax residents must declare global assets (Modelo 720) and possibly pay tax on foreign rental income.

Q5: Can Xolo help with autónomo registration and taxes?
Absolutely. Xolo manages registration, VAT rules, invoicing, and quarterly/annual filings.

How Xolo Helps Expats Become Self-Employed in Spain

Navigating the intricacies of freelancing in Spain can be daunting, but Xolo is designed to help. Xolo offers everything you need as an expat in Spain:  

1. Fast, Free Autónomo Registration: Xolo takes care of the entire autónomo registration process, ensuring you meet all legal requirements.
2. Smart Invoicing With Automatic VAT/IGIC Calculation: Xolo provides intuitive invoicing software that supports multiple currencies and automatically calculates VAT when needed.
3. Tax Filings Done for You (Quarterly + Annual): Stay on top of your tax obligations with Xolo’s expert guidance. Personalized quarterly and annual tax filings ensure you avoid any penalties.
4. Expert Support for Foreign Residents & Digital Nomads: Whether you have questions about VAT, social security contributions, or currency exchange, Xolo’s team of experts is available to provide support.

Invoicing international clients as a freelancer in Spain involves understanding VAT rules, currency conversion and legal registration requirements. For expats in Spain, Xolo offers unshakeable support, making the process of freelancing and invoicing simple and efficient.

Take the stress out of freelancing with Xolo’s comprehensive service, and focus on what you do best: your freelance work.