# When to be an autonomo, and when not?



## libove (Feb 24, 2008)

I'd been thinking - perhaps incorrectly I now realize, after reading everything I could find here about 'autonomo'- that autonomo status was necessary if I wanted to legally do an irregular series of small consulting work for whoever wanted to pay me.

But I'm beginning to think that 'autonomo' is intended to include only someone who is opening their own business which expects to have retail or commercial customers on a fairly constant flowing basis, and that doing a series of small contracts is supposed to be handled by the interested company actually hiring me on a temporary contract basis each time.

Actually, even just writing this, it doesn't sound right. Because I can't imagine the small restaurant down the street writing a temporary work contract for me to spend one week in their office helping them with a computer problem...


So: If I want to be able to either a) take a real, full-time job (regardless whether short/fixed term, or indefinite) if/when I find a good one; and also b) be able to do a few hours here, a few weeks there, for whoever needs work that I can do and wants to pay me .. what status should I have? 

Is autonomo necessary / helpful to enable these 'many small' jobs, for example if I were to do a few hours here and there helping someone with their computer questions, with the occasional weeks/months doing formal security analysis of a new business startup venture? (I do want to retain the ability to just get a long term contract, if one arises, so I know I need to also keep the 'cuenta ajena' status, along with possibly adding autonomo / cuenta propia status).


No need to go in to the cost pros and cons - that I've got clear from my reading here; I'm just looking for clarity on what kinds of work can only / can most easily/best be done with autonomo status vs. standard cuenta ajena contracts.


My actual status is permiso de trabajo (por cuenta ajena, no restriction anymore on province or sector, as I've successfully renewed by initial work permit).

Oh, and lastly, am I right that the words on a visa/ work permit which mean autonomo are 'cuenta propia'?


Many thanks,
Jay
Barcelona


----------



## nigele2 (Dec 25, 2009)

I think the first questions might be: 

Do you need to create a business identity?
What would your clients/customers like you to be? 

then once the business need is met consider the spanish requirements (after all if your business fails the authorities and you won't care what you are ). 

As an ad hoc employee do you get good pension benefit, cause as autonomo you will not normally?
Do you ever see yourself signing unemployed? 
Do you ever work black economy? 
Do you make any investment in tools of the trade (even if it amounts to a mobile phone and internet access)?
Do you make investment in marketing and sales?
Do you invoice and/or claim against tax expences (travel, subsistance)?
Could you increase income by sub-contracting?
Do you need to protect yourself with liability (public or otherwise) insurance.

I think you have to look at every case individually; there is no easy answer, but for sure think your business need first.. Well best of luck with whatever it is you do


----------



## libove (Feb 24, 2008)

Nigele, thanks for your thoughts. I really am looking for the legal answer - what is the Spanish autonomo status meant for - what type of work, to be done fully correctly within the designs of the Spanish labor law, MUST be done as autonomo?

What kinds of work could be done either as autonomo, or could be done on individual short temporary contracts ... but likely would be hard to get clients to do on a contract basis (for reasons of it increasing their business complexity and paperwork costs) so that having autonomo status would be better?

I am not looking for costs, tax implications - I understand those. And no I do not participate in the black economy.

I would appreciate a little more information on how the availability and cost of business liability insurance is affected by being autonomo vs. working on short temporary contracts? .. as well as what you have in mind when you mentioned the sub-contracting question?

And finally, still, is 'autonomo' equal to my ID card saying 'cuenta propia' on the back? .. or is that 'cuenta propia' yet another status?

Thanks again,
Jay





nigele2 said:


> I think the first questions might be:
> 
> Do you need to create a business identity?
> What would your clients/customers like you to be?
> ...


----------



## Pesky Wesky (May 10, 2009)

libove said:


> I'd been thinking - perhaps incorrectly I now realize, after reading everything I could find here about 'autonomo'- that autonomo status was necessary if I wanted to legally do an irregular series of small consulting work for whoever wanted to pay me.
> 
> But I'm beginning to think that 'autonomo' is intended to include only someone who is opening their own business which expects to have retail or commercial customers on a fairly constant flowing basis, and that doing a series of small contracts is supposed to be handled by the interested company actually hiring me on a temporary contract basis each time.
> 
> ...


_*Bakeja*_, and possibly other people, will know!


----------



## bakeja (May 26, 2009)

I know a lot of people say "autonomo" = self-employed and as a short hand that will do but there are some things specific about the autonomo status.

For a start there are two classifications - profesional and empresarial. The first is for people carrying on a trade or profession and the other for people opening businesses without the protection of a corporate structure. The latter case would be like a sole trader or partnership in the UK where there is a business trading but it has no separate legal identity so that the liabilities of businesses are indistinguishable from the people who own and run it.

If you are doing any kind of work in Spain and are not an employee of say the government, a company, a coop or an autonomo, you will almost certainly need to become autonomo to be properly legal, declare the income for tax, issue invoices etc An alternative, worthwhile in some circumstances, is to set up your own company and become an employee of the company.

Even just doing occasional small jobs will require registration as autonomo although there is an exemption from autonomo social security payments for some "occasional" autonomos.

There is a page on my website dedicated to all things autonomo, things like invoicing requirements, allowable expenses, social security etc


----------



## libove (Feb 24, 2008)

Thanks James. I've read your site's pages on this point, as well as the classification system. It seems pretty clear that I'd be 62.02 or 62.02, computer consultancy or other IT and computer service activities.
What I didn't figure out is whether these fall in to the professional or empresarial category, and what the real difference is (for organization, complexity, and tax/cost purposes) between the two?
Cheers,


----------



## bakeja (May 26, 2009)

libove said:


> Thanks James. I've read your site's pages on this point, as well as the classification system. It seems pretty clear that I'd be 62.02 or 62.02, computer consultancy or other IT and computer service activities.
> What I didn't figure out is whether these fall in to the professional or empresarial category, and what the real difference is (for organization, complexity, and tax/cost purposes) between the two?
> Cheers,


If you went for 62.02 you would be "profesional". The only real difference in the costs and burdens is that when you invoice a business "retenciones" (advanced tax payments) are deducted. Empresarial autonomos are not subject to retenciones. The autonomo page has a section on retenciones.

As for your other question about "cuenta propia" being on your residency card this is something of a red herring. If you are non-EU you have to apply for residency and this includes a classification of either "propia" or "ajena". The former is for people who have gainful employment lined up to support their application and the latter for people who have a certain trade or profession to carry out. In either case proof has to be presented like certification or contracts. This is merely a pre-requisite for living and working in Spain and the full raft of employment and autonomo requirements still apply as normal.

Happily for EU citizens they do not have to claim residency as it is their's by right and since 2007 the residency cards have been replaced by a simple signing of a register of EU citizens. Even before 2007 residency was granted automatically to them without need to prove your employment, self-employment or other basis for application.

In summary it appears you are stuck with the autonomo as your option if you want to go legal. Setting up your own company is expensive and it is more costly to administer. It also does not save any social security costs. As I said before there may be a case for you claiming a social security exemption, also discussed on the autonomo page.


----------

