One of the most frequent doubts when working independently is what happens if I manage to expand, will I be able to hire another person as a freelancer? For your peace of mind, we have created this article in which we explain the possible scenarios in which you can carry out your procedure without any inconvenience.
Types of people you can hire as a freelancer
In Spain, working for your own account is not an impediment to hiring someone else. However, you must understand the labor implications and the regulations that apply in each case. Below, we explain the various forms of contracting:
Hiring another freelancer as a freelancer
First of all, it should be clarified that hiring another freelancer (i.e. another person like you) is not considered an employment relationship like the one between a company and a worker, but it is seen as a commercial relationship.
But what does this mean? It will not be possible to draw up an employment contract, but a commercial contract, where the link between the two freelancers is established as a relationship between a customer and a service provider.
In this way, there will be no way for one of the two freelancers to be seen as an employee and the other as the boss and, therefore, there will be no work schedule to comply with.
They are also individually responsible for complying with their social security contributions and keeping their tax obligations with the tax authorities up to date.
Hiring a family member as a freelancer
According to Article 1.1 of the Workers’ Statute, in this type of situation, a self-employed person may hire a family member as a collaborating self-employed person.
When we talk about self-employed collaborator we refer to a direct relative of the titular self-employed worker, for whom he/she works. And in order to be considered in this way, the person must meet certain requirements such as:
Be a direct relative by consanguinity, affinity or adoption up to second degree
To offer a regular collaboration, not only in specific cases.
Must live at the same address as the self-employed owner
Cannot be registered as a self-employed worker.
Must be over 16 years old
The figure of the self-employed collaborator can enjoy certain benefits such as being exempt from the declaration of taxes such as VAT and Personal Income Tax on a quarterly basis.
On the other hand, if there is a standard employment relationship, the self-employed can hire the family member through a contract under the general regime.
You may also be interested in: Tax benefits for the self-employed in Spain
Hiring an employee as a freelancer
In this case, if you are self-employed and you are looking to hire an employee, you should know that Social Security contributions will be your responsibility, and you will have to register as an employer through the TA.6 form.
Registering as an entrepreneur does not mean that you have to found a company or change your legal form, since it is possible to maintain your status as a self-employed worker.
In addition, it is essential that you request your Contribution Account Code (CCC) in order to be able to pay the amount of social security corresponding to the workers you hire.
However, if you have already registered as an employer, you only need to follow the steps below to be able to hire an employee:
Step 1: Once you have decided who will be the employee to be hired, you will have to register him/her with the Social Security, and two situations may arise:
If it is your first job, you must use the TA.1 form in order for the administration to assign you an affiliation number.
On the other hand, if it is not your first job, you must fill in the TA.2/S form.
Step 2: Make sure to process your CCC, using the TA.7 model.
Step 3: Submit a copy of the contract to the Servicio Público de Empleo Estatal (SEPE) within 10 days. If you wish, you can do it through its electronic portal
Step 4: You must make the payments of the contracted employees’ contributions through the Direct Settlement System.
You may also be interested in: Basic guide to bookkeeping as a freelancer
Hiring commissioned employees on a freelance basis
If you are self-employed and wish to hire an employee, there is also the possibility of offering him/her a commission instead of a monthly salary.
In general, these types of agreements are usually related to the sales sector. And, as in the case of hiring freelancers, you will be able to enter into a commercial contract.
However, in the event that the worker has to work a fixed schedule, you will be obliged to make an employment contract and pay him/her the Minimum Interprofessional Wage (SMI).
Likewise, it is important that you specify in the contract when the employee will receive the commissions, that is to say, establish a date in case you so decide or set it at the time of making a sale.
Hiring a foreigner as a freelancer
Depending on whether the foreigner belongs to the European Union or not, there will be different regulations that allow you to hire him/her:
If he/she is an EU foreigner studying in Spain, you may hire him/her as long as the work to be performed is compatible with the internships he/she is required to do as part of his/her training.
If he/she is an EU foreigner who has already finished his/her studies and has been residing in the country for 3 years, there is also the possibility of joining your work team, as long as he/she has not been granted a scholarship by a public agency.
If it is a non-EU foreigner, it will be within your possibilities to hire them as self-employed, but first you must ensure that they are not irregularly present in Spain and that they have a valid work permit.
You may also be interested in: How to become self-employed in Spain if you are a foreigner?
How many people can I hire as a freelancer?
According to Order HAC/ 1264/2018, in Article 3.d, it is established that depending on the economic activity in which the self-employed person is engaged, they will be allowed to hire between 2 to 10 people, provided that they are taxed by the objective estimation method or module system.
The following are the most common cases along with the number of people allowed to be hired:
On the other hand, if you are self-employed and taxed under the simplified direct estimation method of the IRPF, you will not have a limit on the number of employees to be hired.
The flat rate for the self-employed
Have you heard about the flat rate? This regulation offers a benefit to those who wish to start as self-employed, by agreeing to pay a reduced fee of only $60 for the first 18 months.
Now, if you are one of those who already knew about this rate and have doubts about being able to hire another person, you have nothing to worry about. And the fact is that, according to the last modification in 2015, it is established that a self-employed worker may also hire a third party and be able to enjoy this bonus in its first stage.
We know that working as a freelancer in Spain can generate multiple doubts, but with the right advice you can not only hire the person you are looking for for your business, but also manage any paperwork you need in your work activity. You only have to enter TAS Consultancy and get in touch with our experts.