I kept doing what I'd always done — from a different country
Working and building a business in Spain is one of the topics I get asked about most — and one of the areas where bad or incomplete information causes the most problems for Americans.
After six years in Valencia, and after eventually registering as autónomo and navigating the Spanish tax system myself, I've learned how this works the hard way: through research, through professional advisors, and through watching other expats make avoidable mistakes. The Spanish system isn't hostile to foreign workers or business owners — it's just different, and it rewards people who understand the rules before they need them.
I'm a web developer, not a lawyer or accountant. Everything here reflects my understanding of these systems, but your situation will differ from mine. Use this page to get oriented — then get professional advice before you make structural decisions.
Your legal basis for working in Spain
Before anything else: your legal right to work in Spain depends entirely on your visa and residency status. Working without the correct authorization can have serious consequences for both your residency and your ability to stay long-term.
Non-Lucrative Visa (NLV)
Cannot workYou cannot work on an NLV — not for Spanish clients, not for foreign clients, not remotely. This includes freelance work and running an active business. Many Americans worked remotely on NLVs before the Digital Nomad Visa existed — technically a violation. It's now no longer necessary.
Digital Nomad Visa (DNV)
Remote workYou can work remotely for non-Spanish clients and employers. Up to 20% of your income can come from Spanish sources. This is the correct legal framework for remote workers and digital nomads.
Self-Employment Visa (Cuenta Propia)
Spanish clients OKAllows you to register as autónomo and actively work with Spanish and international clients from the start.
Work Visa (Cuenta Ajena)
EmploymentAllows you to work as an employee for a Spanish company. The employer drives this process.
Long-term EU Residency (after 5 years)
Full rightsFull right to work in any capacity — employment, self-employment, and running a business — the same as a Spanish citizen.
The Digital Nomad Visa: the remote worker's route
Spain's Digital Nomad Visa (Visado para Teletrabajo de Carácter Internacional), launched in 2023, created the first legal framework for remote workers to live and work in Spain without being employed by a Spanish company.
Who it's for: remote employees with non-Spanish employers, freelancers and contractors whose primary clients are outside Spain, and independent consultants working internationally. Up to 20% of total income can come from Spanish sources.
Two application routes
Apply before traveling; receive a 1-year visa; convert to a 3-year residence permit after arrival. Processing 2–8 weeks; total timeline often 3–7 months. The first year on the initial visa does not count toward the 5-year permanent residency clock.
Enter visa-free as a tourist (90-day Schengen), then apply directly to the UGE from within Spain. You receive a 3-year residence permit directly — no conversion step, all years count toward permanent residency. Processing 1–3 months. File before the 90-day window closes.
Important for Americans: the Beckham Law does not exempt you from US tax obligations. You still file a US return and report all worldwide income. The flat Spanish rate can be used as a foreign tax credit, but the interaction is complex — get advice from a tax advisor with dual US/Spain expertise.
Spain's Digital Nomad Visa: Everything You Need to Know →Autónomo: Spain's self-employment regime
Autónomo is the Spanish self-employment status — the equivalent of being a sole trader or independent contractor. If you want to legally work with Spanish clients, run a freelance business, or formalize self-employment income in Spain, registering as autónomo is the standard path.
I registered as autónomo after obtaining long-term residency. It changed my relationship with Spain in ways I didn't expect — I became part of the system differently. More paperwork, yes. But also a real business identity here.
Who needs to register
The registration process
Obtain your NIF/NIE
Your Spanish tax identification number.
Register with the Agencia Tributaria
The Spanish tax authority — Modelo 036 or 037.
Register with Seguridad Social
As autónomo under the RETA (Régimen Especial de Trabajadores Autónomos) system.
Register with your ayuntamiento
Optional — if you have a physical business location.
An asesor fiscalcan handle all of this for you — and for the first registration, it's strongly advisable. Fees are typically €100–200 for setup.
These aren't taxes — they're contributions that entitle you to healthcare, limited unemployment benefits, and eventually a Spanish pension.
Quarterly tax filings
IVA on invoices:invoicing Spanish clients, you typically charge 21% IVA, collect it, and remit quarterly. Invoicing non-EU clients or EU businesses (with their VAT number), you generally don't charge IVA. An asesor manages this.
How to Become Autónomo in Spain →Running a US LLC from Spain
This is the situation I know best — and the one most American expats with existing businesses face. The short version: you can continue to operate your US LLC from Spain, but Spanish tax law will assert jurisdiction over your income once you become a Spanish tax resident, and the interaction is complex.
Spanish tax residency is triggered at 183 days
More than 183 days in a calendar year makes you a Spanish tax resident, owing IRPF on your worldwide income — including income earned through your US LLC.
A US LLC does not insulate you from Spanish tax
Spain looks through single-member US LLCs not generating genuine third-party US business activity. The income is treated as personal income of the Spanish-resident owner. Leaving money in the LLC doesn't defer Spanish tax.
You still file a US return
As a US citizen, you file regardless of where you live. The US-Spain treaty and Foreign Tax Credit (Form 1116) prevent most double taxation — Spanish taxes paid can generally offset your US liability — but the mechanics require careful handling.
The Virginia LLC specifically
Virginia single-member LLCs are disregarded entities for US federal tax (pass-through to personal return). Spain similarly looks through them — for Spanish purposes you're generally treated as a self-employed individual earning the LLC's profits.
Practical implications
Get a dual-qualified advisor.US LLC + Spanish tax residency requires someone who understands both systems. A Spanish asesor who only knows the Spanish side, or a US CPA who doesn't know Spain, will get you only half the answer. Advisors who specialize in US expat tax in Spain are worth finding.
US Citizens in Spain: A Tax Guide →Starting a Spanish company (SL / SA)
To build a business that employs Spanish workers, serves Spanish clients at scale, or has a formal Spanish identity, you'll likely form a Sociedad Limitada (SL) — the Spanish equivalent of an LLC.
Sociedad Limitada (SL)
Most commonSociedad Anónima (SA)
The corporate equivalent (like a US corporation). Used for larger companies, joint ventures, or companies anticipating significant investor capital. Not relevant for most expat entrepreneurs starting out.
Formation process
Timeline: 4–8 weeks with professional help. Cost: €800–2,000 in notary, registry, and professional fees, plus the €3,000 capital requirement.
Branches and subsidiaries: with an existing US business, a branch (sucursal) isn't a separate legal entity — the US parent is liable. A subsidiary (typically an SL) is separate. Each has different tax treatment.
Spanish employment: working for a Spanish employer
If you've been offered a job by a Spanish company, the visa and employment framework differs from self-employment.
Work visa (cuenta ajena):the employer must first obtain work authorization, demonstrating (in most cases) that no EU candidate was available. This process is employer-driven — you can't pursue it independently.
Spanish employment contracts
Spanish employment law is strongly protective of employees. Key features:
Salary and taxes: employers withhold IRPF based on your personal situation and contribute to Social Security on your behalf. Net salary is typically 20–35% below gross depending on income and circumstances.
Working in Spanish: most Spanish companies operate in Spanish; multinationals often work in English internally. The language requirement is a practical filter on which roles are open to you.
Business taxes in Spain
IRPF (autónomos)
Progressive income tax, advance payments quarterly via Modelo 130. Rates 19%–47% nationally, with autonomous communities adding a layer.
Impuesto sobre Sociedades (SL/SA)
Corporate income tax at 25% standard (15% for new companies, first two profitable years). Quarterly advance payments; annual return.
IVA (VAT)
Standard 21%; reduced 10% for certain goods/services; super-reduced 4% for basic necessities. Charged on invoices to Spanish clients, collected, and remitted quarterly (Modelo 303).
Withholding (retenciones)
Invoicing other Spanish businesses, a 15% IRPF retención typically applies — the client withholds it and pays the tax authority directly. You receive the net and claim it as a prepayment on your annual return.
Deductible expenses
Professional services, equipment, subscriptions, a portion of home-office costs, business travel, training. Meticulous records and proper invoicing are essential — your asesor guides what's deductible.
Modelo 720:Spanish tax residents with foreign assets exceeding €50,000 per category must file annually — your US accounts, brokerage portfolio, and US real estate all count. It's a declaration, not a payment, but penalties for non-filing are severe. Not optional.
Legal & Taxes in Spain →Banking and invoicing as an autónomo
Coworking and business infrastructure
Spain's coworking market has matured significantly. In Madrid, Barcelona, and Valencia, options range from budget hot-desks to premium private suites.
Operators: WeWork and Spaces (Madrid, Barcelona), Utopicus (Madrid, Valencia), Cloud Coworking (Valencia), Coworking Banc Sabadell, plus hundreds of independents. The American Chamber of Commerce in Spain (AmChamSpain) is a useful networking resource for US businesses.
Hiring in Spain
If your business grows to hiring employees in Spain, you're entering one of Europe's more complex employment frameworks.
Payroll: managing Spanish payroll internally is complex for small companies. Most use a gestoría — a combination of accountant and HR administrator — to handle monthly payroll, Social Security filings, and tax withholding.
Finding professional help
This section matters as much as anything else on this page.
Asesor fiscal
For autónomos, not optional — handles quarterly filings, ensures correct deductions, prevents costly errors. One of the best-value relationships you'll have in Spain.
Gestoría
A broader administrative firm handling Social Security filings, payroll, and company formation. A Spanish institution — every small business uses one.
Abogado
For company formation, employment contracts, IP, and disputes. Don't rely on your asesor for legal advice — they're different functions.
Dual US/Spain tax advisor
US-citizen + Spanish tax residency with income on both sides needs someone who knows both systems — Bright!Tax, Greenback, TFX, or independents. The stakes justify the cost.
Detailed guides
Frequently asked questions
Can I work remotely for my US employer from Spain?
Do I have to register as autónomo if I just work remotely for US clients?
Can I keep my US LLC and just live in Spain?
What is the Beckham Law and should I use it?
How hard is it to start a business in Spain?
Can I hire employees in Spain as an American-owned business?
What is a gestoría?
Is the 15% withholding tax a problem?
Do I need to file Modelo 720 as an autónomo?
What's the difference between an asesor fiscal and an abogado?
Can I run an online business from Spain with Spanish customers?
This page is for informational purposes only and does not constitute legal, tax, or financial advice. Business registration, tax obligations, and employment law in Spain are complex and change frequently. Always consult a qualified Spanish abogado and asesor fiscal before making structural decisions about your business or employment situation. US tax obligations require additional advice from a CPA or tax advisor with US expat expertise.
Social Security in Spain
Spain's Seguridad Social covers healthcare, retirement pensions, disability, parental leave, and (for autónomos since 2023) a limited unemployment benefit.