Agency for foreign self-employed workers in Mallorca | G1

Registering as a self-employed foreigner in Mallorca is perfectly possible, but the procedures depend on nationality, the right to reside and work in Spain, the activity to be carried out, and tax residency. There is no single valid procedure for all foreigners.

A citizen of the European Union can work as self-employed without applying for a work authorization, although if they remain in Spain for more than three months, they must comply with the corresponding registration obligations. A citizen of a third country, on the other hand, needs to have an authorization that allows them to carry out self-employed activity, unless they already have another residence status that enables them to work.

At Gestoría G1, with services in Mallorca and fiscal, labor, and immigration services, you can centralize the preparation of the NIE, the census registration, the RETA, periodic tax returns, and the review of the foreign professional's tax situation.

EU citizen or non-EU citizen: the first step is different

Citizens of the European Union, EEA and Switzerland

Citizens of the European Union, the European Economic Area and Switzerland can engage in self-employment in Spain without needing a work permit equivalent to that required of nationals of third countries.

If they are going to reside in Spain for more than three months, they must personally request their registration in the Central Register of Foreigners within three months of entry. To prove that they are self-employed, among other accepted means, registration in the census of economic activities or proof of registration with Social Security may be used.

Therefore, “being a European citizen” does not eliminate all immigration procedures: it eliminates the need for prior work authorization, but not the registration obligations when establishing residence in Spain.

Third-country nationals

When a person from outside the EU wants to move to Spain specifically to carry out a self-employed activity, the immigration regime applicable to the initial temporary residence and self-employment authorization comes into play.

The regulation requires, among other aspects:

• Meet the requirements that the legislation requires of Spaniards to open or develop the activity.
• Prove sufficient professional qualification or experience when the activity requires it.
• Prove the planned investment and the viability of the project.
• Meet the general requirements regarding foreign nationals, background, and public order that apply.
• Pay the applicable fees.

The initial authorization has a specific duration and may be limited territorially and by sector of activity in accordance with current regulations.

For those who are outside Spain, the procedure is coordinated with the application for the corresponding visa. If the person already resides legally in Spain with another authorization, it must be analyzed whether that situation already allows them to work or whether a modification is appropriate. It is not correct to assume that any legal resident can simply apply for self-employment registration without first reviewing their authorization.

How to obtain the NIE to work as a self-employed person in Mallorca

The Foreigner Identity Number (NIE) identifies the foreigner in their administrative, tax, and economic relations in Spain.

It can be requested in Spain before the competent Police authorities or, when the interested party is outside the country, through the Spanish consular offices, provided that the requirements of the procedure are met.

The application uses the form EX-15 and normally requires:

• Valid identity document or passport.
• Explanation of the economic, professional or social reasons justifying the application.
• Proof of payment of the corresponding fee.
• When acting through a representative, sufficient power of attorney to carry out the procedure.

How long does the NIE take?

The regulations establish a maximum period of five days to resolve the assignment of the NIE from the entry of the application in the registry of the competent body.

This legal period should not be confused with the time that may be required to get an appointment, prepare documentation, obtain a power of attorney, or resolve an incident. Therefore, it is not correct to present “between two and six weeks” as the ordinary legal period.

Gestoría G1 NIE Service

Gestoría G1 offers NIE processing for foreigners. The value of a specialized service lies in properly preparing the file, checking the documentation, and coordinating the submission or representation when legally possible.

There is no official administrative category called “NIE express” that creates a different legal procedure or guarantees a privileged resolution. If the expression is used commercially, it should be understood as an agile management service, not as a special channel before the Administration.

Tax registration: form 037 no longer exists

Registration in the Census of Entrepreneurs, Professionals and Withholders is currently processed using form 036.

The old simplified form 037 was abolished and ceased to be used on February 3, 2025. Therefore, a guide that still indicates “form 036 or 037” is outdated.

Form 036 is used to report, among other matters:

• Date of start of activity.
• Activity or activities carried out.
• Tax domicile and, where applicable, affected premises.
• Obligations relating to VAT.
• Personal Income Tax (IRPF) regime when applicable.
• Withholdings that must be made.
• Intra-community transactions when applicable.

The IAE heading does not by itself determine all your taxes

Correctly classifying the activity is important, but it should not be stated that the IAE heading by itself determines the VAT regime, withholdings, or the IRPF method.

These obligations depend on the actual nature of the activity and the specific regulations of each tax. Two professionals engaged in similar activities may have different obligations due to their clients, international operations, or tax regime.

Registration in the RETA: when it should be done

Registration as a self-employed worker is managed with the General Treasury of the Social Security, currently electronically through the enabled channels, including Importass.

Registration must be requested before starting the activity and can be processed up to 60 calendar days in advance.

Therefore, it is not advisable to wait until issuing the first invoice and then regularize Social Security afterwards.

Contribution based on net income

The self-employed system uses brackets linked to net income. Upon registration, a forecast is communicated and the base can be modified several times during the year to adjust it to the evolution of the activity.

Subsequently, the Social Security system carries out the corresponding adjustment based on the available tax information.

It is not advisable to publish a single “minimum contribution” as if it were fixed for any self-employed worker. The amount depends on the income bracket, the base chosen within the permitted limits, the applicable contingencies, and possible contribution benefits.

Reduced contribution for new self-employed workers

Persons who meet the access requirements may apply for the reduced contribution rate provided for new registrations. The legal reference starts at 80 euros per month for the first twelve months, to which the corresponding contribution to the Intergenerational Equity Mechanism is added when applicable.

A second twelve-month period may exist if the income requirements established by law are met and it is requested under the corresponding terms.

Foreign nationality does not by itself exclude this benefit: what matters is meeting the conditions established for registration and the reduction.

Is a Spanish bank account necessary?

You will need an account suitable for operating with the Administrations and managing collections and payments, but it should not be generally stated that a self-employed worker is obliged to open an account with a Spanish IBAN in order to register.

In the SEPA area, there are rules that prevent unjustified discrimination against an IBAN from another Member State. In practice, each procedure must be reviewed to confirm which accounts and payment methods the corresponding body accepts.

Tax residency: it does not depend solely on the 183 days

Administrative residency and tax residency are different concepts.

An individual may be a tax resident in Spain if any of the criteria established in the Personal Income Tax Law are met, including:

• Remaining more than 183 days during the calendar year in Spanish territory, with the legal rules on sporadic absences.
• That the main core or basis of their activities or economic interests, directly or indirectly, is located in Spain.

There is also a presumption, unless proven otherwise, when the spouse not legally separated and the dependent minor children habitually reside in Spain.

Therefore, “being less than 183 days” does not automatically guarantee being a non-tax resident.

Personal income tax for resident self-employed workers: forms and installment payments

A self-employed worker who is a tax resident in Spain is subject to personal income tax in accordance with the rules applicable to their activity.

Form 130

Those who carry out economic activities under the direct estimation method usually make installment payments using Form 130.

However, there is an important exception for certain professional activities: they are not obliged to make these installment payments when, in the legal reference period, at least 70% of their professional income was subject to withholding or payment on account.

Therefore, it should not be stated that every resident self-employed worker necessarily files Form 130 every quarter.

Form 131

Form 131 corresponds to those who determine the income from certain activities using the objective estimation method, when they meet its requirements.

Type of IRPF

IRPF is progressive and its result depends on the base, the state and regional scales, personal situation, and applicable reductions and deductions. It is not advisable to summarize it in a single percentage range as if all self-employed workers in Mallorca were taxed between two fixed rates.

VAT for foreign self-employed workers

The nationality of the business owner does not determine VAT. What matters is where the transaction is located, what service or good is provided, who the client is, and whether any exemption applies.

Many activities apply the general rate of 21%, while others may be subject to reduced rates or be exempt.

When there are clients in other EU Member States or outside the EU, the following must be especially reviewed:

• Whether the client is a business or an end consumer.
• The rules for locating the service.
• The possible reverse charge of the taxable person.
• Registration in the Register of Intra-Community Operators when applicable.
• The use of schemes such as OSS for certain services or B2C sales.

What if I am a non-resident for tax purposes?

Being a non-resident does not mean that any activity carried out from Mallorca is simply settled with the form 210.

Form 210 is used for certain income obtained in Spain by non-residents without a permanent establishment.

If the business or professional activity is carried out in Spain through a fixed place of business or the elements that determine the existence of a permanent establishment are present, the tax obligations change substantially and other models and rules of taxation may come into play.

International Social Security: EU, postings and agreements

A foreigner working from Mallorca should also not assume that “if a bilateral agreement exists, they only contribute where they work”. The rules are more precise.

Within the EU, EEA and Switzerland, coordination mechanisms are applied to determine which Social Security legislation is applicable when a person works in one or several States.

With third countries, there may be bilateral agreements that contain their own rules on posting, simultaneous activity and aggregation of periods.

Before registering with RETA, it is advisable to check whether:

• The activity is carried out exclusively in Spain.
• There is simultaneous activity in another State.
• It is a temporary assignment.
• There is an applicable international agreement.
• A document certifying the applicable Social Security legislation must be obtained.

Enrolment and deregistration in RETA for seasonal activities

The regulations allow certain registrations and cancellations within the year to take effect from the actual day of start or cessation, provided they are communicated correctly and within the established limits.

In general, there can be up to three registrations and three cancellations per year with effect from the specific day when the regulatory conditions are met; from then on, different rules apply regarding effects and contributions.

The cancellation can be communicated within the regulatory deadline and can also be scheduled in advance through the Social Security services.

This may be relevant for seasonal activities in Mallorca, but it must be coordinated with the census registration and with the effective reality of the activity. It is not correct to deregister from Social Security while continuing to work on a regular basis.

Books and documentation that a self-employed worker must keep

The mandatory books depend on the type of activity, the method of determining income, and VAT obligations.

Among the records that may be required are books of income or sales, purchases and expenses, capital assets and, for certain professional activities, funds provisions and disbursements.

In addition, there may be specific VAT books.

The rule of “keep everything for four years and then destroy it” should not simply be used. The general statute of limitations for tax purposes is four years, but certain documentation may continue to have tax effects in later periods —for example, depreciation, capital assets, pending tax bases, or transactions whose verification affects non-prescribed fiscal years— and it must be kept for as long as necessary.

B2B e-invoicing and VERI*FACTU: they are different obligations

There are two reforms that are often confused and that a foreign self-employed worker must distinguish from the beginning.

Electronic invoice between companies and professionals

The Law on Business Creation and Growth established the future generalization of electronic invoicing between entrepreneurs and professionals.

The regulatory development was approved by means of Royal Decree 238/2026. Its effective application is linked to the development of the public invoicing solution through a ministerial order: the regulation establishes staggered deadlines of 12 months for certain business owners with turnover exceeding eight million euros and 24 months for the rest, counted from the aforementioned order.

Therefore, it is not correct to state generally that “electronic invoicing between self-employed workers has been mandatory since 2025”.

Billing computer systems and VERI*FACTU

A different obligation is the adaptation of certain billing computer systems to the requirements of Royal Decree 1007/2023.

The legal deadlines were modified and different dates were established for Corporate Income Tax taxpayers and for the rest of the affected obligated parties. Before contracting software, it is advisable to verify whether the activity is included and which date applies to it.

A program compatible with the requirements of billing systems does not automatically convert an invoice into the future B2B e-invoice: they are related but distinct frameworks.

Form 720 for foreigners resident in Spain

A foreigner who becomes a Spanish tax resident may have reporting obligations regarding assets and rights located abroad.

Form 720 groups several categories—such as certain accounts, securities/rights/insurance, and real estate—and contains thresholds, exceptions, and rules for subsequent filings.

The 50,000 euro reference is relevant for the first obligation in certain categories, but it should not be presented as an isolated rule applicable without exceptions to any foreign asset.

Crypto-assets held abroad also have a specific information return, form 721, when its requirements are met.

Impatriate regime: not available for any self-employed worker

The special regime for workers, professionals, entrepreneurs and investors relocated to Spanish territory may allow certain individuals who acquire tax residency in Spain to calculate their taxation according to special rules during the year of relocation and the following five tax periods.

But it is not enough to be a foreigner and register as self-employed.

Among the cases included in this regime, with specific requirements, are:

• Certain entrepreneurial activities qualified in accordance with applicable legislation.
• Services provided by highly qualified professionals to startup companies.
• Certain training, research, development, and innovation activities when the required income percentages are met.

The option is communicated using form 149 within the legal deadline, which is generally linked to six months from the start of the activity or from the corresponding Social Security documentation.

Before opting in, the result must be compared with the ordinary personal income tax regime, because it is not always the most favorable option.

Deductible expenses: not all personal expenses are deductible

For an expense to be tax-deductible, it must meet the legal requirements of connection with the activity, justification, and record-keeping.

Among the items that may have specific rules are:

• Social Security contributions.
• Professional expenses necessary for the activity.
• Certain health insurance policies within the legal limits.
• Supplies for the home partially allocated to the business activity, applying the corresponding legal rule.
• Capital assets through depreciation when applicable.

Working from home does not automatically turn all rent, internet, electricity, or phone into a professional expense. It is necessary to correctly declare the allocation and apply the corresponding rules.

Regulated professions and licenses in Mallorca

Some activities require additional procedures before starting.

It may be necessary to obtain a license or submit a municipal responsible declaration, have sectoral authorizations, or prove professional qualifications.

In regulated professions, the procedure for recognizing a foreign qualification depends on the profession, the country where the degree was obtained, and the applicable European or Spanish regulations. Not all professionals follow exactly the same “homologation” procedure.

Therefore, doctors, architects, psychologists, lawyers and other professionals must specifically review the recognition of qualifications and the mandatory professional association membership, where applicable.

Agency for foreign self-employed workers in Mallorca: what Gestoría G1 can manage

Gestoría G1 provides services for self-employed workers and foreigners and offers assistance in Mallorca, with offices in Palma and Alcúdia, as well as a presence in other Spanish cities.

Among the services that can be especially useful for a foreign professional are:

• NIE management.
• Census registrations and modifications.
• Registration and monitoring of the RETA.
• Tax filing.
• Accounting and invoicing.
• Tax advisory for residents and non-residents.
• Labor management if employees are subsequently hired.
• Digital certificates and electronic procedures.

The firm offers service in Spanish, English, German, French, and Italian, a particularly relevant point for those starting a business activity in Mallorca without yet mastering Spanish administrative terminology.