Entrepreneurship in Spain is on the rise, and the Ministry of Labour and Social Economy’s report for the second quarter of 2024 shows that the number of self-employed individuals (known as “autónomos” in Spain) is nearing the 2008 record of 3.4 million for the first time in 15 years. In the last 10 years, that number has increased by 317,388, bringing the total to 3,335,194 in April 2024. Being self-employed requires closer and more regular interaction with the AEAT (Spanish Tax Agency), as you are responsible for submitting your information rather than an employer on your behalf.

Self-employed individuals must register in the census of business owners, professionals, and withholders, allowing the AEAT to monitor their tax responsibilities. Companies must complete this administrative process using Form 036, while self-employed workers can opt for the simpler Form 037. This document allows the self-employed to register for the census and report significant changes, such as a change in economic activity or cessation of business.

What’s in this article?

• What is Form 037?
  
• How is Form 037 used?
  
• What are the differences between Form 037 and Form 036?
  
• Who can file Form 037?
  
• What is the deadline for filing Form 037?
  
• How to file Form 037
  
• Does Form 037 still exist?
  

What is Form 037?

Form 037 is a census declaration that self-employed professionals must submit to the AEAT to ensure that they comply with their tax obligations. It is an abbreviated version of Form 036 that, while not applicable in every situation, significantly streamlines many common processes.

How is Form 037 used?

Form 037 allows self-employed workers to notify the AEAT of various changes in their professional activity:

• Register in the census: If you plan to start an economic activity as a self-employed individual, you must register in the census to notify the AEAT that you’re beginning operations. This process is also required if you engage in an economic activity independently that results in receiving income subject to withholdings or advance payments (such as renting out a property and earning monthly rent).
  
• Modify census information: If any of the information you provided when completing Form 037 has changed, you must update the AEAT. For example, if you move your self-employed business, you must update your tax address with the Tax Agency.
  
• De-register from the census: If you decide to stop working as a self-employed person, you must notify the AEAT that you no longer have any tax obligations relating to this activity from the date specified.
  

What are the differences between Form 037 and Form 036?

While Form 037 might appear to serve the same purposes as Form 036, there are specific differences you need to note:

• Form 037 is 6 pages long, whereas Form 036 has 20 pages. Completing Form 037 is much easier than Form 036, but it only covers a limited range of procedures. For instance, applying for a Tax Identification Number (NIF) is required for all self-employed individuals and can only be done using Form 036.
  
• Form 037 is only available to self-employed individuals who meet certain criteria. Form 036, on the other hand, can be used by both self-employed individuals and corporations.
  

Who can file Form 037?

As mentioned above, Form 037 is exclusively for individuals, i.e., self-employed persons who do not run a company. However, this form is not available to all self-employed persons. The criteria that a self-employed person must meet to use this simplified form are as follows:

• They must reside in Spain
  
• They must have a NIF
  
• They must not be a “large company”; i.e., their income as a self-employed individual must not exceed €6,010,121.04 per year
  
• They must not operate through a professional representative
  
• Their tax domicile must be the same as the administrative management address
  
• They must not be a self-employed individual under the special value-added tax (VAT) regimes, except for four cases:
  
  • Simplified regime
    
  • Special regime for agriculture, livestock farming, and fishing
    
  • Special regime for additional VAT
    
  • Special cash basis regime
    
• They must not be registered in the register of intracommunity operators
  
• They must not be registered in the monthly VAT refund system (REDEME)
  
• They must not make transactions not subject to VAT
  
• They must not make distance sales
  
• They must not be a taxable person (i.e., not having tax liability) with respect to excise taxes and insurance premium tax
  
• They must not make profits from fixed-income products; in other words, revenue derived from investment income (e.g., profits obtained with government bonds and investment funds)
  

What is the deadline for filing Form 037?

The deadline for submitting Form 037 to register, de-register, or update information varies based on the details provided to the AEAT:

• Starting a professional activity as a self-employed individual: There is no fixed deadline, but you must notify the AEATM before you start your business and before any tax obligations arise (for example, before you purchase materials needed to start your business, otherwise you won’t be able to claim VAT on those purchases).
  
• Corrections and general updates to the information provided: Generally, self-employed individuals have one month from the day after the change to report it. Certain changes have their deadlines, which you can find in the instruction manual for Form 037 from the AEAT.
  
• Ceasing activity as a self-employed worker: One month.
  
• Death of the self-employed individual: Heirs have six months to complete Form 037 to either de-register from the census or update the data.
  

How to file Form 037

Filing Form 037 is straightforward, but we’ve created a step-by-step guide to help you understand some of its sections.

1. You can either file Form 037 online (using your Cl@ve, certificate, or electronic ID for identification) or submit it in person at an AEAT office. Note that the online filing option is only available to those who are already registered in the census of business owners, professionals, and withholders. If this doesn’t apply to you, you must submit a physical copy of Form 037, which you can print from the provided PDF. The process for completing the form is the same whether you file it electronically or on paper.
   
2. Under “Identification data,” enter your NIF in box 101. Enter your surname and first name in box 102.
   
3. In “Reasons for filing,” check the box that corresponds to the reason you’re filing Form 037:
   
   • Box 111: Registering in the census.
     
   • Boxes 122, 124, 125, 127, 131, 132, and 136: Modifying information. These sections are for updating your tax address, notification address, other identifying data, details about your economic activity or premises, VAT data, IRPF (income tax) information, and any details the Agencia Tributaria needs about withholdings or payments on account.
     
   • Boxes 150, 151, and 152: De-registering from the census. Once you’ve marked box 150, specify the reason in box 151 and enter the date of activity cessation in box 152.
     
4. In the “Identification” section, provide details enabling the Agencia Tributaria to recognize you as a taxpayer. You must provide various details, including your NIF, tax address, and the address for receiving notifications.
   
5. In the “Personal income tax” section, provide information about your income tax obligations, including the system used to determine income from your economic activity. It’s important to note that self-employed individuals must pay IRPF for their professional activities, so make sure to enter all the information accurately.
   

6. Under “Value-added tax,” there are four different sections:

   • A): Answer “yes” or “no” to the question about conducting only transactions that are not subject to or are exempt from VAT.
     
   • B): Check the box corresponding to the activity’s start. The Agencia Tributaria must know whether your commercial activities occur before, during, or after acquiring goods or services needed for your professional tasks.
     
   • C): Provide the IAE code and the applicable regime depending on the economic activity you will perform.
     
   • E): Let the AEAT know if you are proposing a provisional deduction percentage. If this is the case, enter the figure in box 586. Also, specify the differentiated sectors and special prorates when applicable.
     

   Ensure all information in this section is accurate, as you will need to collect tax on your sales when you begin your self-employed activities and later submit quarterly VAT returns to the AEAT, which must match the details provided in Form 037. Using a tax automation solution such as Stripe Tax can be very helpful for simplifying your VAT returns by automatically calculating and collecting VAT on your sales. Additionally, Stripe Tax monitors tax regulations in over 50 countries where they are available and is frequently updated to ensure you always apply the correct tax rate to your sales (see the updated list of excluded territories).

7. In the “Withholdings and payments on account” section, you can sign up for or opt out of three different types of obligations. Boxes 700, 701, and 702 correspond to income from personal work, various professional activities or prizes, and rental of houses, apartments, or premises, respectively.

8. In the “Declaration of economic activities and premises” section, describe your activity and specify the location where it will take place.

As we’ve observed, completing Form 037 is easier than filling out Form 036. Remember, however, that you can only use this simplified version if you are self-employed, do not manage a company, and meet the above criteria.

Does Form 037 still exist?

As of the article’s publication date, Form 037 can still be filed in person or online. If no changes occur, a draft order that will significantly alter BOE-A-2007-9508—removing Form 037 and introducing various modifications to other tax forms, including the simplification of Form 036—is set to take effect on February 3, 2025.

Although the changes have yet to be officially announced, the draft regulation plans to combine the two forms. While Form 037 could be coming to an end, this guide will aim to help you continue filling it out effectively.