How to Become Autónomo in Madrid: Registration, Fees and Taxes

To become autónomo (self-employed) in Madrid, you register with the tax office using form 036 and then with Social Security’s RETA scheme, both online. New autónomos usually pay a flat €80 a month for the first 12 months; after that, the monthly fee depends on net income and runs from about €205 to €605, as of November 2026.

Who can register as autónomo?

Anyone who works for themselves on a regular basis in Spain must register: freelancers, consultants, shop owners and partners who run their own company. Spanish and EU citizens only need an NIE. Non-EU nationals need a residence status that allows self-employment, such as a permit for self-employed work, a stay or residence with work authorisation, or the international teleworker residence when it covers self-employed activity. A student or non-lucrative residence does not allow it.

Before you start, get your NIE, a Spanish bank account for direct debits and a way to sign online (digital certificate or Cl@ve). Our guides to the NIE in Madrid, the digital certificate and Cl@ve and opening a bank account in Madrid cover those steps.

How do you register, step by step?

1. Tax registration (alta censal). File form 036 on the Agencia Tributaria’s website. You choose your activity code (IAE epígrafe), say whether you charge VAT and which IRPF method you use (normally estimación directa simplificada).
2. Social Security registration (alta en el RETA). Through Import@ss, the Social Security online portal, before you start working and at most 60 days before. You declare your expected monthly net income, which sets your provisional bracket, and ask for the flat rate if you qualify.
3. Local licences, if needed. Working from home or online usually needs nothing from the city. Opening premises in Madrid city needs a declaration or licence from the Ayuntamiento.
4. Invoicing. Number your invoices in sequence and keep income and expense records. Spain is introducing compulsory certified invoicing software (VeriFactu); check the current start date for self-employed people on the Agencia Tributaria’s website.

Registration is free if you do it yourself. Many people pay a gestor for the first filings, typically a monthly fee.

How much is the Social Security fee in 2026?

Since 2023 the fee depends on real net income. For 2026, Real Decreto-ley 3/2026 kept the 2025 table of brackets and minimum bases. The fee is the base you choose times the contribution rate, which is roughly 31% to 31.5% including the intergenerational equity charge (MEI). Figures below use the minimum base of each bracket and are rounded.

“Net income” here means your profit after deductible expenses, plus the Social Security fees you paid, minus a 7% general allowance (3% for company partners). You can change bracket up to six times a year. At year end Social Security compares your declared income with your tax return and either refunds the difference or asks for more.

What is the €80 flat rate and Madrid’s extra aid?

People registering as autónomo for the first time, or who have not been registered in the previous two years (three if they used the flat rate before), pay a reduced fee of €80 a month for the first 12 months. If your net income in that first year stays below the minimum wage, you can ask for 12 more months at the reduced fee.

The Comunidad de Madrid has run a programme on top of this, known as Cuota Cero or Tarifa Cero, that refunds the €80 fee to new autónomos who meet its conditions, applied for online after the flat-rate period. As of November 2026 the scheme appears in the regional budget, but conditions and deadlines change with each call, so confirm on comunidad.madrid before counting on it.

Which tax returns do autónomos file?

Professionals who invoice Spanish businesses usually have 15% IRPF withheld on each invoice, or 7% in the year they start and the two following years. Our guide to income tax in Madrid explains the rates your annual return will use.

Autónomo or a limited company (SL)?

An SL (sociedad limitada) separates your personal assets from the business and pays corporate tax on profit instead of progressive IRPF. It also costs more to run: notary and registry fees at set-up, annual accounts, corporate tax returns and usually a gestor. Since 2022 the legal minimum share capital is €1, though some reserve rules apply until it reaches €3,000.

• Autónomo suits people starting out, with modest profits and low business risk.
• An SL is worth pricing once profits are high enough that progressive IRPF on them exceeds corporate tax plus the extra running costs, or when the activity carries liability you do not want to hold personally.

Directors who control their SL still register in the RETA, usually at a higher minimum base than a sole trader. The break-even point depends on your numbers, so ask an asesor fiscal or gestor to run both scenarios.

Bottom line

Set aside about a third of each invoice from day one: VAT you collected, the IRPF prepayment and next quarter’s fee all leave your account at once in the quarterly filing months. Declare a realistic net income in Import@ss, since the year-end adjustment can bring a single large bill.

FAQ

How much does an autónomo pay in Madrid in the first year?

€80 a month for the first 12 months with the flat rate, as of November 2026. The Comunidad de Madrid’s Cuota Cero programme may refund that amount if you qualify.

Can I register as autónomo with a digital nomad visa?

Self-employed remote work is possible under the international teleworker residence if your permit covers it, but you must still register with the tax office and Social Security. Check your resolution or ask the immigration office.

Do I have to charge VAT?

Most activities charge VAT at 21%. Some, such as certain medical and educational services, are exempt, and services to businesses abroad follow special rules, so confirm your case when filing form 036.

What happens if my income is lower than I declared?

Social Security refunds the difference after it receives your tax data for the year. If your income was higher, it charges the extra fees.