Registering as a freelancer without giving up the stability of your payslip is possible. Dual activity (known as *pluriactividad*), which means combining a job as an employee with your own economic activity, is an increasingly common option in Spain. It allows you to test a business idea with a safety net, but it requires a good understanding of your new obligations.
If you're considering this step, it's essential to understand how to register as a freelancer step by step to get off to a good start.
Social Security Contributions: The Major Benefit
Being in dual activity means you will contribute to Social Security in two ways: through your payslip as an employee and through your freelancer's fee. While this may seem like a double burden at first, it holds a significant advantage.
The regulations provide for a refund of part of the contributions. If the sum of your contributions (from the general employment scheme and as a freelancer) exceeds a limit set annually in the General State Budget, you are entitled to a refund of 50% of the excess from the General Treasury of the Social Security (TGSS). This refund is usually processed automatically before May 1st of the following year.
Tax Obligations: IRPF and VAT
Your dual activity status does not exempt you from your tax obligations as a freelancer. You will need to manage two key taxes:
* Personal Income Tax (IRPF): Your income as a freelancer is added to your salary in the annual income tax return. Additionally, you must file Form 130 quarterly to pay 20% of your net earnings in advance to the Tax Agency. You are exempt from this form if more than 70% of your freelance invoices include IRPF withholding.
* VAT: Unless your activity is exempt, you will have to file Form 303 every quarter to settle VAT (the difference between the VAT you charge your clients and the VAT you pay on your expenses) and the annual summary with Form 390.
Invoicing Gets an Upgrade: Get Ready for VeriFactu
As a freelancer, you are required to issue invoices for your services. And a crucial new development is on the horizon: the VeriFactu system. To comply with the Anti-Fraud Law, all freelancers and companies must use invoicing software that meets VeriFactu requirements.
This system will send information from each invoice to the Spanish Tax Agency (AEAT) almost instantly, ensuring its integrity. The deadline for freelancers to adapt is July 1, 2027. It is vital to start preparing and choose suitable software that simplifies this transition. Therefore, it's important to know who is required to comply with VeriFactu for Freelancers to avoid any surprises.
In summary, dual activity is an excellent way to start a business securely. The key is organization: keep a thorough record of your invoicing and expenses, meet tax deadlines, and anticipate regulations like VeriFactu to make your dual professional life a success.