It was 2 AM and I was watching startup videos on YouTube. Again. My notebook was full of ideas for going freelance: building websites, consulting, creating content. But every time I opened the Tax Authority website, I closed the tab in panic.
It wasn’t the fear of paying taxes. It was worse: I didn’t even know where to start.
For two years, I postponed starting my independent activity because of one word: accounting. It seemed like a different world, full of terms I didn’t understand and consequences I couldn’t predict.
If you identify with this story, you’re not alone. And I have good news: what stopped me for 730 days can be solved in an afternoon.
The moment everything changed
One day, a friend asked me: “But what actually scares you?”
I stopped to think. It wasn’t income tax. It wasn’t Social Security. It was simply not knowing.
- I didn’t know when I had to register my activity
- I didn’t know which declarations I had to submit
- I didn’t know how much I’d pay in taxes
- I didn’t know if I could do everything on my own
The fear of the unknown is paralyzing. But when I finally found the answers, I realized I’d wasted 2 years for nothing.
The 5 truths nobody told me
1. You must register your activity BEFORE your first invoice
This was the first surprise. I thought I could invoice first and then “legalize” the situation later. Wrong.
The law is clear: you must notify the Tax Authority of the start of your activity before:
- Issuing your first invoice
- Receiving any payment
- Buying materials for the business
- Signing your first contract
It’s free and takes 15 minutes on the Tax Authority portal. But it has to be before.
2. The simplified regime isn’t automatic
Second illusion shattered. “Simplified” doesn’t mean the State takes care of everything for you. It only means that the profit calculation is simplified.
What you have to do yourself:
- Quarterly VAT declaration (every 3 months)
- Quarterly Social Security declaration (every 3 months)
- Annual income tax return (once a year)
- Keep all invoices
Yes, that’s at least 9 declarations per year. The State doesn’t do them for you.
3. Taxes aren’t that scary
Let’s look at concrete numbers. If you provide services (like most freelancers), the State assumes that 25% of what you invoice is expenses. You pay taxes on the other 75%.
Practical example:
- You invoiced 10,000 euros in a year
- The State assumes you spent 2,500 euros on expenses (25%)
- You pay income tax on 7,500 euros (75%)
- If it’s your only income, the rate starts at 12.50%
- Income tax to pay: about 937.50 euros (before other deductions)
It’s not nothing, but it’s also not the monster I imagined.
4. Social Security has a minimum of 20 euros
Another discovery: even if you don’t invoice anything in a quarter, you have to pay at least 20 euros per month to Social Security.
If you invoice very little, the amount stays at 20 euros. If you invoice more, you pay 21.4% on 70% of what you earned (after deducting expenses).
But note: in the first year you may be exempt! That’s a huge help when starting out.
5. Fines are avoidable (but painful)
This was my biggest fear for 2 years. And with good reason - fines can be significant.
But they’re 100% avoidable. Just:
- Submit declarations on time
- Pay taxes on the correct dates
- Keep documents organized
The problem? There are too many dates to remember and too much to organize on your own.
The mistake I almost made (and you’ll want to make too)
After finally registering my activity, I thought: “I’ll do everything in a spreadsheet.”
Terrible idea.
Between recording invoices, calculating VAT, preparing declarations, and tracking deadlines, I was spending more time on bureaucracy than working for clients.
That’s when I discovered tools that do this automatically. FIZ.co, for example, not only lets you issue certified invoices (free on the Base plan), but also automatically submits the quarterly VAT and Social Security declarations.
And the best part? It has a Tax Shield that covers fines up to 500 euros if there’s any error in the declarations. In other words, my biggest fear simply disappeared.
Important: The biggest mistake you can make is thinking you’ll “organize this better someday.” Every day that passes without a system is another opportunity to miss a deadline or lose an important document. Start organized from day 1.
My first invoice (and why it took me 3 hours)
I remember the day perfectly. I had just registered my activity and a client asked me for an invoice.
I panicked. What information did I need to include? Where do I get an invoice number? And VAT?
I spent 3 hours researching, reading Tax Authority PDFs, trying to figure out if I needed to include VAT (spoiler: as a freelancer just starting out, you’re probably exempt).
Today, on FIZ.co, I issue an invoice in 30 seconds. 4 fields, and it’s done. Certified by the Tax Authority, sent by email or WhatsApp.
But the most important thing isn’t the speed. It’s the peace of mind of knowing everything is correct.
What I’d do differently if I could go back
If I could go back to being 28, I’d tell myself three things:
1. Register your activity today Not tomorrow. Not next week. Today. It’s 15 minutes that will unlock the next years of your life.
2. Use tools from the start Don’t try to be a hero. Tools like FIZ.co exist precisely so you don’t have to learn accounting. Focus on your work, not on declarations.
3. The fear is worse than reality I spent 2 years afraid of something I solved in an afternoon. The Tax Authority doesn’t bite. The declarations aren’t that complicated. And with the right tools, it’s almost automatic.
In summary:
- Register your activity before invoicing - It’s free, quick, and mandatory. Don’t delay.
- The simplified regime isn’t autopilot - You have to submit at least 9 declarations per year. Use tools that automate this.
- Fear comes from lack of information - When you realize it’s just a few simple rules and some dates to meet, everything gets easier. And with a Tax Shield, even fines stop being a worry.
Don’t waste 2 years like I did. The word “accounting” no longer scares me - and it shouldn’t scare you either.
