Did you know that there is a legal framework that allows you to enjoy the freedom of being self-employed, managing your time, and being your own boss, while at the same time having the security of labour rights that protect your financial stability? This is the essence of the TRADE self-employed worker, which enables many professionals in Spain to combine the best of independence with the benefits of a contract that safeguards their rights.
If you are considering becoming a TRADE self-employed worker, at Blegal we can help you. In this guide we explain in detail what it means to be this type of self-employed worker, their rights and obligations, how to formalise this employment relationship, and the advantages it offers. Let’s take a look at the key points.
What is a TRADE self-employed worker?
A TRADE self-employed worker (Economically Dependent Self-Employed Worker) is a professional who works independently but generates at least 75% of their income from a single client. This differentiates them from traditional self-employed workers, who diversify their client portfolio to reduce financial risks.
This figure was created under the Statute of Self-Employment (Law 20/2007) to provide additional legal protection to workers who, although formally independent, maintain an economic dependency on a company or individual. It was developed by Royal Decree 197/2009 of 23 February, which implements the Statute of Self-Employment.
Main characteristics of a TRADE self-employed worker
To understand the differences compared to traditional self-employed workers, here are the main particularities:
Economic dependency
Although the TRADE self-employed worker operates independently, at least 75% of their income comes regularly and directly from one client. Economic dependency implies a continuous relationship, but without losing control of their activity, working hours, and organisation of resources, which is key to maintaining the autonomous nature of their work.
Mandatory contract
Unlike other self-employed workers, the TRADE self-employed worker is required to sign a written contract with their main client. This contract must detail all aspects of the working relationship, such as financial terms, duration of the agreement, tasks to be performed, and the rights and obligations of both parties. Its aim is to provide clarity and legal protection for both the worker and the client, avoiding ambiguous situations that may harm the self-employed worker. Moreover, this contract must be registered with the State Public Employment Service (SEPE) for it to have legal validity.
Special legal status
The TRADE self-employed worker has a specific legal framework that regulates their activity and grants them additional rights to prevent abuse and protect their working conditions:
Protection against termination of contract
If the main client terminates the contract without just cause, the TRADE self-employed worker may claim compensation for the damages suffered.
Annual leave entitlement
They are entitled to at least 18 working days of holiday per year, which is unusual for other self-employed workers.
Work-life balance
They are entitled to adapt their working hours to balance professional activity with personal and family responsibilities.
Guarantee of basic labour rights
Although a TRADE worker is not an employee, they are recognised as having similar rights in specific cases, such as protection against inequality, non-payment, or abuse by the main client.
Obligations of a TRADE self-employed worker
The obligations of this type of worker are established to ensure compliance with fiscal, labour, and contractual responsibilities:
TRADE contract signature
It is mandatory to formalise the relationship through a written contract, which must be registered with SEPE.
Income declaration
Like any other self-employed worker, the TRADE must issue invoices and file the corresponding quarterly VAT and income tax (IRPF) returns.
Social Security contributions
The TRADE is obliged to contribute to the Special Regime for Self-Employed Workers (RETA).
What is the contract of a TRADE self-employed worker like?
The contract of a TRADE self-employed worker is the legal cornerstone that governs the professional relationship between the worker and their main client. Its main purpose is to avoid ambiguities and protect the self-employed worker’s rights by clearly establishing the conditions of the agreement. As mentioned, the law requires this contract to be written and registered with the State Public Employment Service (SEPE), reinforcing its validity and ensuring compliance with the agreed terms. This document must include at least the following key aspects:
Identification of the parties
The contract must include the full details of both the self-employed worker and the main client, such as names, tax addresses, ID numbers (DNI/NIF or CIF), and any relevant information to unequivocally identify the parties involved in the contractual relationship.
Purpose of the contract
The contract must specify in detail the activities, tasks, or services to be performed by the TRADE self-employed worker for the main client. This description should be precise and clear, indicating the scope of work, the worker’s responsibilities, and any expected deliverables or results.
Duration and working time
The contract must define whether the relationship is indefinite or fixed-term. If the agreement has an end date, the conditions for extension or renewal must be specified. It should also establish the estimated working hours, i.e., the time the self-employed worker will dedicate to fulfilling the agreed services. Although the TRADE organises their own time, this reference clarifies the agreed dedication with the client.
Financial compensation
This is one of the most important points of the contract, as it governs the payment conditions. It should specify the amount of remuneration, frequency of payments, invoicing method, and payment method.
Termination conditions
The contract must define the conditions under which the relationship may be terminated. It is essential to include justified reasons for termination, such as failure to meet deadlines or lack of quality in the work delivered. It must also contain provisions for compensation in case of unjustified termination and the required notice period.
Rights and obligations
Finally, the contract must guarantee the specific rights of the TRADE self-employed worker, which differentiate them from other self-employed workers. These include the right to holidays, protection against dismissal, work-life balance conditions, and, additionally, the worker’s obligations.
What is the process for registering as a TRADE self-employed worker?
Registering as a TRADE self-employed worker involves the following steps:
1. Registration with the Tax Office and Social Security
- Submit form 036 or 037 to the Spanish Tax Agency.
- Select the appropriate heading in the Economic Activities Tax (IAE).
- Register with RETA in the Social Security system.
2. Formalisation of the TRADE contract
- Negotiate and draft the contract with the main client.
- Include all required elements, such as financial compensation, working hours, and rights.
3. Registration with SEPE
- Submit the signed contract to SEPE for validation.
4. Tax compliance
- Issue periodic invoices with VAT.
- File quarterly VAT and income tax (IRPF) returns.
Frequently Asked Questions about TRADE self-employed workers
What taxes must a TRADE self-employed worker pay in Spain?
A TRADE self-employed worker is subject to quarterly payment of VAT (21%) and IRPF (15%), unless exempt depending on their activity.
What are the tax benefits of being a TRADE self-employed worker?
TRADE self-employed workers can deduct expenses related to their activity, such as office supplies, transport, premises rental, and training. They may also access Social Security contribution reductions, such as the flat rate for new self-employed workers.
Are there grants or subsidies for TRADE self-employed workers?
Yes. In addition to state aid, such as the flat rate, some autonomous communities offer specific subsidies to promote self-employment and support dependent self-employed workers.
Flexibility, security, and professional advice
The TRADE self-employed worker is a key figure for many professionals in Spain, as it allows them to combine the flexibility of self-employment with labour protection against economic dependency. However, it is essential to know and comply with all legal and tax obligations to avoid conflicts.
Are you thinking of becoming a TRADE self-employed worker? If so, we are here to help. At Blegal, we have a long track record of helping self-employed workers formalise contracts, optimise their tax situation, and protect their rights. Contact us today and let our experts advise you to guarantee the success and security of your professional activity.
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