If you are thinking of starting a business in Spain, registering with the Tax Authorities is an essential prerequisite to be able to carry out your business or professional activities. Do you know the process to carry out this procedure? Below, we will tell you which forms you need to present and the step-by-step procedure to follow.
When should you register with the tax authorities?
According to Spanish regulations, the Tax Agency establishes that you must register with the Tax Authorities when you start a business activity; regardless of whether you are making a profit with your company at that moment or not.
Likewise, your registration will serve to declare the work that you have to carry out with your business, such as: notary, lawyers’ fees, among others.
On the other hand, in the event that you carry out your activities independently as a self-employed person, it will also be necessary to register in order to be included in the tax regime.
How to register with the tax authorities?
Now, the question you must be asking yourself is: How is the process to register? Below, we present the forms that you must apply to start your process:
In general terms, the form that you must fill in is the one that corresponds to the model 036 or 037. The latter is a simplified version of 036; and it is usually used in those cases in which you are not a large company, but you act as a self-employed person.
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Form 036 can be filed in person at the offices of the Tax Agency, or electronically through its web portal, in accordance with Law 59/2003.
In addition, it is important that you take into account that the intention of these models is to indicate the beginning, the cessation or the modification of a commercial activity; therefore, you will need to specify data related to such activity, as well as your personal data.
After downloading and filling out form 036, you must also attach your DNI. In case of doing the procedure remotely, you will have to have the electronic or digital certificate and your cl@ve PIN, in order to process your application.
If you want to learn how to complete the form step by step to register with Hacienda, we explain the information you must select on each page:
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You must indicate as the reason for filing: registration in the census of businessmen, professionals and withholders.
In addition, you must provide basic information regarding your identification data: NIF, name and last name
It is composed of section 2A (for natural persons), 2B (legal persons or entities), and 2C (for permanent establishments of a natural person or entity).
You will communicate the identification data of the company, if you have residence in Spain and nationality, tax domicile, permanent establishments, among others.
This part applies only in those cases in which a representative is being used to register you with the IRS. Information regarding your personal data must be provided
In box 403 you must select the type of activity that you plan to develop
You will have to specify the place where you are going to operate, either domicile or commercial premises.
Select the heading of the Economic Activities Tax to which the work to be carried out belongs
Provides information on the VAT taxation system (general, special equivalence surcharge, or special for agriculture, livestock and fishing).
You have to check the box related to the start of activity and enter the date and the activity code that you will perform in the VAT regime that applies
In section D (registrations) you can register as an intra-community operator (ROI) if you apply
In this part you must provide the information that involves Personal Income Tax (IRPF).
Box 600 is the one indicated to register in the IRPF, and subsequently select the objective or direct estimation method, and the associated date.
Withholdings and payments on account can be found on page 7, and you will have to indicate if you are going to hire others
In case of hiring the services of a self-employed professional, in box 701 you must indicate it and in box 721 enter the date of income.
So, do you want to know who is obliged to file this form to register with the Tax Authorities? Here are the cases that you should take into account:
Individuals or legal entities (i.e. self-employed or companies) wishing to carry out a business or professional activity in Spanish territory.
Individuals or legal entities that are not resident in Spain, but operate in the territory through a permanent establishment or pay income subject to withholding or payment on account.
Those who, not acting as businessmen or professionals, pay income subject to withholding or payment on account or carry out intracommunity supplies or acquisitions of goods subject to VAT.
Individuals or legal entities that are not physically established in the VAT territory but are taxable persons for VAT purposes.
Partners, heirs, co-owners or participants of entities under the income attribution system that carry out business or professional activities and, in turn, have tax obligations arising from their status as members of such entities.
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In the case of selecting the simplified regime, in form 037, you must comply with the following conditions:
Be a resident of Spain and have a Tax Information Number (NIF).
Not be considered a large company, nor act through a representative.
To have a tax and administrative domicile that coincide with the following
Not being registered in the ROI
Distance selling is not allowed
Not to be included in the special VAT regimes.
Not being a taxpayer of Special Taxes or Tax on Insurance Premiums.
Do not satisfy income from movable capital
Now that you know the forms you need to download to register with the Tax Authorities, are you ready to start your business activity in Spain? Do you need help with any of your paperwork? Enter our website and contact our experts at TAS Consulting to manage each of your requirements.