Paying to Be Self-Employed in Spain: A Canadian’s Experience
From ESL Teacher to Solo Business Owner
A lot of you know I first moved to Spain back in 2014 — but not to run a business. I was living in Madrid at the time, not even imagining I'd ever start my own solo business. My ex-husband and I had just finished backpacking the Caribbean, spent some time in Sint Maarten, and decided to relocate to Spain so I could get to know his culture — he's a Spaniard.
At that time, I was working as an ESL teacher, taking contracts around the world. It wasn’t until I moved back to Canada that I officially launched my own business in 2017. Fast forward to 2022: I left Canada for good and relocated my nail business to Mallorca in mid-2022.
Before I moved, I had been warned by other Spaniards about the headaches of becoming autónomo/a (self-employed) in Spain. But I didn’t really get it until I was knee-deep in it.
Zero Monthly Fee in Canada… Not So in Spain
In Canada, when you're self-employed, you pay zero dollars a month to be registered. That was my reality. In Spain, on the other hand, you're required to pay a monthly self-employment fee (cuota de autónomo) — the amount varies depending on your income.
At first, I found this annoying. I wasn’t earning as much as I had in Canada, so paying a fixed monthly fee felt financially stressful. But once I dug deeper (with the help of a good accountant), I started to understand the system better and actually appreciate it more.
Let me explain in simple terms: in Canada, there’s no monthly fee, but that also means no government support(IMPORTANT: we all have free health care in Canada unlike our neighbours) — no paid maternity leave, no pension contribution, no sick leave. You're on your own. You have to set money aside if you want those things.
In Spain, that monthly fee contributes toward all of it — including healthcare (which, by the way, is excellent here). You're essentially opting into a social safety net as part of being self-employed.
How Much Does It Cost to Be Self-Employed in Spain?
As of 2024–2025, here's the deal:
Your first year as an autónomo/a, you pay €85.17/month.
If you earn under €4,000/year, your accountant can apply to keep that lower fee for a second year.
After that, your monthly cuota increases as your income rises. The maximum fee can go over €500/month.
And the IRPF (personal income tax) is also kinder in your early days: 7% for the first three years, increasing to 15% after that.
*Tax here(VAT: value added tax) is 21% across the board
➡️ Important Tip: Spain doesn’t make it easy for low earners starting out, so it’s crucial to be financially stable before launching a business here. That way, you can afford to stay afloat during the ramp-up period.
🔍 Important Notes:
These are approximate monthly fees based on the selected cotización base within your income bracket.
You can choose a higher base within your bracket if you want to contribute more toward future benefits like pensions.
This chart is valid for general autónomos (not part of the flat-rate plan or special regimes).
A Good Accountant Is Everything
This brings me to one of my most important lessons: get a great accountant. I made plenty of mistakes early on, both from not understanding the system and from working with the wrong people.
My first accountant was cheap, but he had no clue what he was doing — and it cost me. The second one charged a high monthly fee, but again, wasn’t invested in supporting a small business like mine.
Eventually, I turned to Facebook expat groups (very active here in Spain!) and posted my story. A lovely American business owner in Madrid sent me her accountant’s contact — and it was a game changer.
This accountant lives in Valencia, speaks great English, offers an online course that teaches you how to file your own quarterly taxes, and then double-checks your work before submitting. I do the grunt work, pay a much smaller monthly fee, and finally feel in control of my business finances — which is how I like it.
And let me tell you: NOW I understand why accountants here charge what they do. Filing in Spain is way more work than in Canada.
The Reality of Filing Taxes in Spain
In Canada, quarterly tax filing is simple: report what you earned and how much GST/HST/PST(depending on the province) you collected.
In Spain? Not so much.
Every month, I’m logging into my accounting software, inputting every single expense, categorizing everything, uploading invoices from production jobs, etc. It takes me at least 1.5-2 hours/month — and that's with training.
One thing I wish I knew earlier:
Form/Modelo 303: means you pre-pay 20% of your estimated annual income each quarter. If you overpay, you get refunded during your annual filing. But this can catch you off guard if you're not prepared.
Also: if your invoices take 30–60 days to be paid (like mine often do in production), make sure you're registered as an accrual basis taxpayer — or you’ll be paying taxes on income you haven’t even received yet. (And once you switch to accrual, you’re locked in for 3 years.)
You Have to Adjust Your Own Monthly Fee
Unlike in Canada where things are fairly automated, in Spain, you are responsible for updating your own autónomo fee as your income increases. You can do this up to 6 times/year, but you need to be proactive — and again, this is why a good accountant is worth gold.
Final Thoughts (and a Bit of a Rant)
I know this post was a bit of a rant, but this is all stuff I wish someone had told meat the beginning of my business journey here in Spain. If you’re a North American moving to Spain as a solopreneur, expect the systems to feel outdated and a bit frustrating — but also know that they do serve a purpose.
You’re paying into a system that will be there when you need it: healthcare, maternity leave, retirement, and more. And while the fees can feel steep, they come with structure, support, and benefits many freelancers back in Canada or the U.S. don’t have.
Coming Soon…
I’ve got more to say on this topic — maybe too much! Which is why I’ll be putting together a mini e-book in 2027 for anyone thinking of relocating their business to Spain.
But for now, I’ll leave you with my amazing accountant’s contact info:
Gestoría Vilaró
Phone nº 722 378 726
www.ruthvilaro-gestoradministrativa.com