# Setting up business in Spain as a sole trader



## MartinJames (Dec 20, 2009)

Hi All

Just a few questions in helping to start a business as a sole trader "Empresa individual" or commonly know as "autonomo" in Spain, so I know what to expect to pay out each month.

I will be living in Andalucia, expect to turn over we say 40,000 euros and profit of 20'000

How much is the opening licence (licencia de apertura)?

How much will the national insurance/social security contribution will be every month? 

How much tax will I pay per year?

Do all businesses as self employed need to pay IVA? 

How much would an average accountant charge quarterly? 

Do I need a business bank account to operate as self employed? 

Thank you

Martin


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## xabiaxica (Jun 23, 2009)

MartinJames said:


> Hi All
> 
> Just a few questions in helping to start a business as a sole trader "Empresa individual" or commonly know as "autonomo" in Spain, so I know what to expect to pay out each month.
> 
> ...


You really need to see a gestor

I can answer a couple of your questions though, from personal experience. You don't need a separate business account to work as autónomo. If you haven't worked as autónomo for the last 5 years your autónomo payments will start low (there's a discount for new autónomos) but over 18 months will increase to a minimum of 260€ a month. Income tax - you will pay a % each quarter (the actual % depends on income) & at the end of the tax year any allowances are taken into account & you might get a rebate. 

Not all businesses have to pay IVA, but there are very few exceptions. 

An accountant or gestor will have different fees for different business, depending on how complicated the accounts are likely to be.


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