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SELF-EMPLOYED

Baja de autónomo: How to deregister as self-employed in Spain

Did you know that self-employed workers in Spain can deregister from the autónomo system up to three times per year without having to pay the full social security fee for that month? It's tricky but worth it, here we’ve explained how to do it.

Published: 26 March 2021 18:06 CET
Updated: 29 March 2024 08:26 CET
Baja de autónomo: How to deregister as self-employed in Spain
Photo: Tim Gouw/Pixabay

Official freelance processes in Spain can be challenging, even getting yourself off the system can be complicated.

But learning how to do the ‘baja’ from Spain’s self-employment system is definitely worth it.

You are able to deregister from the autónomo system up to three times per year without having to pay the full social security fee for that month.

You will only pay the portion up until the day you get yourself off the system. If you deregister a fourth time, however, you will be liable to pay the full fee.

This can be useful to know because it means you can temporarily stop trading and avoid having to pay the social security fee if you’re not earning.

You might need to temporarily unregister if you know you are not going to get any work for a couple of months, but will have a bigger project later on in the year or if you have lost some clients and need to wait until you can get some new ones.  

READ ALSO: Spain’s new tax rates for the self-employed from 2023 onwards

Or perhaps your work is seasonal, maybe you’re a freelance teacher who won’t get any work during the summer months. In this case, you can do the baja from the system for the months of July and August only. Similarly, you can also re-register as an autónomo up to three times per year.

If you have a digital certificate, you can do the baja online yourself, and there is no need to wait ages for appointments to become available and go into the offices.

If you don’t have a digital certificate, you can ask your gestor to submit them for you.  

READ ALSO: What does a gestor do and why you’ll need one

Keep in mind, deregistering online is only for people who are sole-traders and not for anyone who also employs other people. In order to deregister when you employ others, you will have to go in person to both the Hacienda and the TGSS Social Security office.

How to deregister from Hacienda 

The first step is to make Hacienda, Spain’s official tax body, know about your plans.  In order to stop being deemed as self-employed,  they will have to remove you from RETA (Régimen Especial de Trabajadores Autónomos) or the Special Scheme for Self-Employed Workers.

It’s very important to let the tax office know that you are not going to be working so they don’t expect you to present future quarterly tax returns. If you stop working in the middle of the financial quarter, you will still have to declare what you earned in that quarter ie) If you deregister in April, the first month of Q2, you will still have to do your declaración. 

Once you’ve gone on to the tax office website, type Modelo 037 into the search box or click on this link. This is the form you’ll need to deregister. Alternatively, you can also fill out the other version of the form – the Modelo 036 for the ‘Declaración censal de alta, modificación y baja’.

Next, click on ‘Trámites’ and select ‘Cumplimentación y presentación telemática 037’ (Online completion and presentation of 037) or 036, if you are choosing that form.

The system will then ask you to log on using your digital certificate or your Cl@ve pin.

READ ALSO: Spanish bureaucracy explained: Saving time through the Cl@ve system

Fill out all your details on the form, making sure to select box 150 (baja) to deregister or unsubscribe. You will also need to fill out the date that you ceased trading or stopped working and the reason why.

Once the form has been filled out, you can send it for processing. You can check this has been done correctly by going back to the home page and logging on with your digital certificate, before selecting ‘Mis Expedientes’ or My Files.

Freelancer
Freelancer. Image: StartupStockPhotos / Pixabay

How to deregister from Spain’s Social Security system

Remember, it’s also very important to deregister from Spain’s Social Security system. If you don’t do it with both Hacienda and the Seguridad Social, they will not accept your deregistration and you will have to continue paying the Social Security fees every month, despite not actually earning anything.

Once on the Social Security website, you can search for and select ‘Solicitud de baja en el Regimen Especial de Trabajadores por Cuenta Propia o Autónomos’ or Withdrawal from RETA. 

You’ll then be prompted to log on with your digital certificate and make sure all your personal details are up to date.

The next step is to fill in your IAE code. This is the code that corresponds to your profession. You can find it on the original RETA certificate you received when you registered as autónomo in the first place.

You will also need to fill out the date that you stopped working, making sure it’s the same date that you put on the Modelo 037 that you sent to Hacienda.

When you have finished filling out the form, press confirm to generate a PDF certificate to show that you’ve deregistered. Save this just in case you might need it later as proof. 

It may take a few days for the system to recognise that you’ve deregistered and once it has, you will receive an e-mail or text message to say that everything has been done correctly.

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For members

VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

Published: 30 April 2024 14:20 CEST
EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur Visa – Visado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

Unfortunately, this exchange is not possible. The main issue is that you’re not allowed to work while on a NLV and the requisites of the DNV are that you must have worked for the company that hired you for a remote role (or your clients if you’re self-employed) for a minimum of three months before you apply.

If this is the case then you’ll be admitting that you were working while on your NLV, which could get you into trouble. This means will have violated the terms of your visa and will be highly unlikely to be granted another one. You may also face penalties and fines, depending on your circumstances.

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