Changing from a Student Permit to Self-Employment in Spain

Completing your studies in Spain does not necessarily mean that you must return to your country of origin to apply for a new visa.

If you meet the relevant requirements, you may be able to modify your student stay permit directly into a residence and self-employment permit.

This option is intended for foreign nationals who, after completing their studies, want to launch their own professional or business project in Spain, work as self-employed professionals, open a business or carry out an economic activity on their own account.

Takuma’s case: a favourable decision in two months

We recently obtained a favourable decision for Takuma, one of our clients, who was legally staying in Spain under a student permit and wanted to launch his own professional project.

We prepared his application to modify his status to residence and self-employment, paying particular attention to the viability of the project, the required investment and the evidence of his qualifications and ability to carry out the proposed activity.

The outcome was very positive: his residence and self-employment permit was granted in approximately two months.

Takuma’s case shows that self-employment is a genuine option for foreign students who have completed their studies and have a serious and viable business or professional project.

However, simply stating that you want to become self-employed is not enough. The project must be presented correctly, and the applicant must prove that sufficient resources are available to put it into operation.

Who can apply for this modification?

As a general rule, an application may be submitted by a foreign national who:

• Is legally in Spain under a long-term student stay permit or another eligible training permit.

• Has completed the relevant studies or training and can provide the corresponding diploma or certificate.

• Has not received a scholarship or public or private funding under certain Spanish or foreign development cooperation or humanitarian aid programmes.

• Meets the requirements for an initial residence and self-employment permit.

• Submits the application within the legally established period.

  
  

Under the current Spanish Immigration Regulations, applicants are no longer required to have lived in Spain as students for three years before applying for this modification.

The main requirements are to have completed the relevant studies or training and to meet the conditions applicable to the proposed self-employed activity.

When must the application be submitted?

The application may be submitted:

• During the two months before the student stay permit expires or before the qualification or training certificate is obtained.

• During the three months following either of those dates.

If the application is submitted within this period, the previous permit will remain valid until the Immigration Office issues and notifies its decision.

Furthermore, once the application has been formally admitted for processing, the student permit provisionally becomes a residence and self-employment permit while the application is being decided.

What documents are required?

Every application must be prepared according to the specific activity the applicant intends to carry out.

There is no single set of documents that applies identically to every case, but the following documentation is normally required.

1. Personal documentation

• A complete and valid passport.

• Foreigner Identity Card, or TIE.

• Current student stay permit.

• Registration certificate from the local council, where required.

• Completed official application form.

• Proof of payment of the corresponding administrative fees.

2. Documents relating to the studies

• Diploma, qualification or certificate proving completion of the studies or training.

• Supporting documentation issued by the educational institution.

• Evidence that the applicant has not received certain scholarships or funding linked to development cooperation or humanitarian aid programmes, where applicable.

3. Business plan or professional project

This is one of the most important parts of the application. The project should clearly explain:

• The professional or business activity to be carried out.

• The services or products that will be offered.

• The target market and potential clients.

• How clients will be attracted.

• The estimated expenses.

• The expected income.

• The investment required.

• The financial forecast for the activity.

• The project’s potential impact on job creation, including the applicant’s own self-employment.

The business plan should not be a generic document. It must be realistic, coherent and supported by evidence.

4. Evidence of the proposed investment

The applicant must demonstrate that sufficient funds are available to start and maintain the activity. The following documents may be provided:

• Bank statements and bank balance certificates.

• Quotations for machinery, equipment or materials.

• Pro forma invoices.

• A lease agreement or proposed lease for business premises.

• Evidence of the costs involved in establishing and launching the business.

• Proof of any other planned investment.

The amount required will depend on the nature of the activity. A professional providing services from home will not require the same level of investment as someone planning to open commercial premises to the public.

5. Professional qualifications and experience

The applicant must also demonstrate that they have the qualifications or experience required to carry out the proposed activity. This can be proven through:

• Academic qualifications.

• Professional certificates.

• Training courses.

• Employment records or certificates of professional experience.

• References from companies or former employers.

• Membership of a professional body, where compulsory.

6. Licences and administrative authorisations

If the activity requires an administrative licence, municipal authorisation, registration or compulsory membership of a professional body, the applicant must prove that the relevant requirements have been met.

Depending on the proposed business, the following may be required:

• An opening licence or responsible declaration.

• Prior notification of the activity.

• Health or sanitary authorisations.

• Registration with a professional body or official register.

• Recognition of foreign qualifications.

• Compulsory professional membership.

• Documentation relating to the premises where the activity will be carried out.

7. Evidence that the project is viable

Although these documents may not always be compulsory, it is highly advisable to provide evidence showing that the project is genuine and has a realistic prospect of success. This may include:

• Contracts or preliminary agreements with future clients.

• Letters of interest.

• Accepted quotations.

• Collaboration agreements.

• A website or professional profiles.

• Evidence of an existing client base.

• Market research.

• Viability reports issued by professional or business organisations.

How long is the permit valid?

The initial residence and self-employment permit is valid for one year. During this initial period, it is generally limited to a specific Autonomous Community and a particular sector of activity.

The permit only becomes fully effective once the applicant has registered with the corresponding Spanish Social Security scheme.

After receiving a favourable decision, it is therefore essential to complete the Social Security registration correctly and apply for the Foreigner Identity Card within the corresponding deadline.

A particular consideration for applications submitted in Catalonia

In Catalonia, responsibility for processing and deciding the employment-related part of these applications lies with the Generalitat de Catalunya, as this Autonomous Community has been granted powers relating to initial work authorisations.

The residence and employment aspects are coordinated with the Spanish State authorities, but the Generalitat plays a decisive role in assessing whether the proposed self-employed activity meets the applicable requirements.

In our professional experience, the Generalitat applies particularly strict criteria when examining self-employment projects. The viability of the business, the proposed investment, the applicant’s qualifications, the necessary licences and the evidence of potential clients are reviewed very carefully.

Applications that are incomplete, insufficiently documented or based on a generic business plan are frequently refused.

For this reason, anyone applying in Catalonia should prepare a particularly detailed and well-supported application.

Where an applicant has a genuine choice between establishing the activity in Catalonia or in another Autonomous Community, we generally recommend considering other regions before deciding where to set up the business.

However, an applicant cannot simply choose an Autonomous Community because its administrative criteria may be more favourable. The application must be submitted in the territory where the professional or business activity will genuinely be established and carried out.

The importance of preparing the application correctly

In this type of procedure, the result depends largely on how the project is presented and documented.

A generic business plan, an investment that does not correspond to the proposed activity, insufficient evidence of professional experience or the absence of the required licences may lead to a request for additional documents or even the refusal of the application.

At Bufete Neila, we examine each case individually, review the applicant’s qualifications and professional experience and prepare the project in a way that clearly demonstrates its viability to the Spanish authorities.

Takuma’s case, which received a favourable decision in approximately two months, is a good example of how it is possible to move from student status to residence and self-employment without returning to the country of origin, provided that the applicant has a genuine project and the application is properly prepared.

If you have completed your studies in Spain and would like to become self-employed or start your own business, you can contact us through www.bufeteneila.com.

We will assess your circumstances and explain the documentation required to prepare your application correctly.

The information contained in this article is provided for general guidance only. The requirements and supporting documents must be assessed individually according to the studies completed, the proposed activity, the Autonomous Community where it will be established and the applicant’s personal circumstances.