Self-Employed In Spain: Minimum Wage and Tax Obligations

Spain's self-employment sector continues to experience growth, with a staggering 3.3 million individuals currently opting for this career path. For foreign nationals living in Spain, self-employment is an attractive option, with more than 400,000 currently registered as autónomos, comprising 12.3% of the total number according to the Spanish government's Social Security Regime (RETA).

However, being your own boss can be challenging, with various hurdles and pitfalls to navigate. One such obstacle is taxes, with many self-employed newcomers questioning whether they need to register and pay taxes if their income falls below the minimum wage threshold, commonly known as the SMI (Salario Mínimo Interprofesional).

What is Spain’s minimum wage for 2025?

In 2025, the minimum wage in Spain is €1,184 per month if paid in 14 installments, totaling €16,576 annually. This increase aims to reduce wage gaps and improve income equality. Source

Interestingly, it’s estimated that around two-thirds of Spain's registered self-employed workers earn below this threshold.

Will I have to register if I do not earn the minimum wage?

This is a grey area in Spanish law. A 2007 Supreme Court ruling suggests that individuals earning less than the SMI are not required to register as self-employed — but only if the work is occasional or not considered “regular.”

Spain’s Social Security defines autónomos as those who “carry out an economic activity for money on a regular, individual and direct basis.” That term — “regular” — is vague and open to interpretation. Even those earning under the SMI may need to register if their work is frequent or recurring.

If you need to issue invoices, you must register with the Treasury (Agencia Tributaria) using forms 036 or 037. Failing to register while issuing invoices can lead to fines or penalties.

What are the 2025 social security contributions?

Since 2023, Spain has used a sliding-scale system for autónomo contributions based on actual monthly income. In 2025, the contribution ranges from:

• €230/month for income under €670
• €260/month for income between €670–€900
• €275/month for income between €900–€1,166
• … increasing progressively …
• €590/month for income over €6,000

These figures are based on real earnings (“renta real”) and must be declared when registering or updated during the year if income changes. Source

How much income tax will I pay in 2025?

As of 2025, these are Spain’s national income tax brackets for individuals:

• €0 – €12,450: 19%
• €12,451 – €20,199: 24%
• €20,200 – €35,199: 30%
• €35,200 – €59,999: 37%
• €60,000 – €299,999: 45%
• €300,000+: 47%

You’ll also pay quarterly VAT (IVA) returns and file your annual income declaration (IRPF) — typically between April and June for the previous year. Learn how to file a tax return.

Conclusion

Self-employment in Spain comes with flexibility, but also significant financial obligations. Even if you earn less than the minimum wage, you may still be required to register and pay social security depending on how often you work or issue invoices.

The new income-based contribution system offers lower payments for low earners, but there’s still a minimum of €230/month in 2025. If you're unsure, always consult a gestor or tax advisor to stay compliant.

More resources: How to register as autónomo | 2025 social security changes