Autónom@s in Spain & self-employed in U.S.A. (LLC)

A self-employed (autónom@) person in Spain is a person who works for himself, that is, he is not dependent on an employer or company but rather carries out economic or professional activities independently. Self-employed people usually offer services or products directly to clients or companies and are responsible for managing all aspects of their business, including billing, taxes and social security contributions.

Registering in the Self-Employement Regime (RETA) in Spain.

To register in the autónom@s regime, it is first necessary to register with the Tax Agency (AEAT) in the economic activity that is going to be carried out, this is very important because it can determine the type of expenses that you can deduct depending on your economic activity, according to the new CNAE 2025.

List of documentation required for registration as Autónomo HERE

Self-employed people generate their income based on their income invoices, and by default, they must invoice with VAT, except if the activity is exempt or the invoice is for a payer outside the European Union. And therefore, they are obliged to present Modelo 303 (VAT) quarterly.

In general, they are also required to file Modelo 130, also quarterly, except for those self-employed persons who pay taxes in modules (objective estimate), or who have more than 70% of their income from invoices with a 15% withholding, as professionals.

Self-employed people in the USA receive 1099 or 1042 from their payers at the beginning of the year and have to fill out Schedule C of Form 1040 or 1040NR in the USA. If the invoicing is done through an LLC or an S-Corp, they pay the taxes directly through Schedule C and Spain does not consider it an entity with legal personality.

The AEAT considers that the economic activity is carried out in Spain if the holder lives in Spain, even if they invoice or receive the money in an account in the USA or it is an LLC.

Totalization Agreement for Social Security between the U.S. and Spain

The Totalization Agreement between the US and Spain is a Social Security agreement that avoids double contributions and protects the rights of workers who have worked in both countries.

Workers who work temporarily in the US or Spain only contribute to the Social Security system of their country of origin, avoiding paying contributions in both countries simultaneously. This especially benefits expatriates and companies with employees abroad.

Allows combining retirement contributions. If a person has contributed in both countries, but does not meet the minimum contribution time requirements in one of them, they can add the periods contributed in both systems to access benefits such as retirement, disability or survivors.

Facilitates access to benefits. Beneficiaries can receive retirement, disability or survivors pensions in either country, according to the rules of the country that grants the benefit. In addition, payments can be received in the other country without significant restrictions.

What can we do from US Tax Consultants?

At US Tax Consultants we can manage your registration as a self-employed person and prepare all taxes and payments to social security or the Tax Agency in Spain; as well as the presentation of the 1040/1040NR in the USA with Schedule C.

Do not hesitate to ask us if you have any questions or request a free consultation with no-obligation