If you’ve set up a business, registered as a self-employed person or applied for a grant, you’ve probably had to provide your CNAE code without being entirely sure what it is or what choosing the right one entails. It’s not a trivial matter: The CNAE determines specific aspects such as Social Security allowances, access to certain forms of public assistance, and the tax classification of your business. Understanding this from the outset prevents mistakes that later take time and effort to rectify.
What is the CNAE and what exactly does it mean?
The CNAE, National Classification of Economic Activities, It is a coding system that classifies all economic activities carried out in Spain into standardised categories. Each activity is assigned a four-digit numerical code that identifies it precisely within a hierarchy ranging from broad sectors to very specific activities.
It has European origins: the Spanish CNAE is the national adaptation of the European Union’s NACE classification, which in turn is derived from the United Nations’ ISIC classification. This enables economic data to be compared between countries using the same methodological basis. In practice, the CNAE code is the common language used by government departments, statistical bodies and financial institutions to identify what a company does.
What is the CNAE code used for in a business or by a self-employed person?
The usefulness of the CNAE extends far beyond that of a statistical classification. In the day-to-day operations of a business or a self-employed person, it has direct implications in three main areas.
Firstly, in the National Insurance scheme: The CNAE code determines the applicable contribution rate and may affect eligibility for contribution rebates, which is particularly relevant for self-employed workers claiming incentives for starting a business or for companies hiring groups of workers eligible for reduced contributions.
Secondly, in access to grants and public funding: Many calls for applications restrict eligibility to companies based on their CNAE code. A company whose code has not been correctly assigned may be excluded from a grant for which it technically meets the eligibility criteria.
Thirdly, in dealings with the Tax Authority: Although the CNAE is not in itself a tax instrument, the Treasury uses it to cross-check data, identify risk patterns and put the declared activity into context.
Where to find your CNAE
The full list of CNAE codes is available at the National Institute of Statistics (INE), in the classifications section of the statistics portal. It can also be found via the Ministry of Industry’s search engine and on most business administration websites and portals. Simply enter a description of the activity to obtain the corresponding code, or navigate through the hierarchical structure until you find the appropriate category.
How to choose the correct CNAE code if you carry out several activities
Where a company or self-employed person carries out more than one activity, the general rule is to assign the CNAE code corresponding to the main activity, defined as the one that generates the highest turnover. If two activities have a similar weighting, it is recommended to choose the one that best represents the core of the business or the one with the greatest future potential. In any case, it is possible to declare secondary activities, although the main code is the one with the greatest administrative and statistical impact.
How the CNAE is structured: sections, divisions, groups and classes
The CNAE is organised into four hierarchical levels. The first are the sections, identified by a letter (A, B, C…), which group together major sectors of activity: agriculture, manufacturing, trade, services, etc. Within each section there are divisions, identified by two digits, which subdivide that sector into more specific areas. The divisions are broken down into three-digit groups and, finally, into four-digit classes, which represent the specific activity.
For example: section J corresponds to Information and communications; division 62 corresponds to Programming, consultancy and other IT activities; group 620 retains that name; and class 6201 specifically identifies the activity of computer programming. The further down the hierarchy you go, the more precise the classification becomes.
Difference between CNAE and IAE
This is a common misunderstanding, but they are different instruments with different purposes. The CNAE is a statistical classification: its aim is to categorise economic activities in order to produce comparable data. It has no direct tax implications.
The IAE (Tax on Economic Activities) is a local tax levied on the carrying out of economic activities within Spanish territory. It has its own classification system, independent of the CNAE, and is administered by local councils. A single activity may have a CNAE code and an IAE category that do not correspond numerically, even though they describe the same thing. Most self-employed people and SMEs are exempt from paying the IAE, but they must still register under the relevant category.
CNAE 2025: what has changed compared with CNAE 2009
The current version was the CNAE-2009. In 2025, work will begin on updating it to bring it into line with the NACE Rev. 2.1 revision, which incorporates new categories relating to the digital economy, technology services and environmental activities. For businesses, this may involve automatic reclassification or the need to review the assigned code, particularly if the activity has a significant technological or sustainability component.
What happens if you choose the wrong CNAE code?
The consequences are more practical than punitive. The most common consequence is being excluded from grants or tax relief for which you would otherwise qualify if the correct code were used. It can also lead to inconsistencies when the tax authorities or the Social Security cross-check data, resulting in additional requests for information. There is no direct penalty for using an incorrect code, but correcting it requires a formal procedure and may affect certain benefits.
How to change the CNAE for a company or a self-employed person
A self-employed person can change their CNAE by submitting form 036 or 037 to the Tax Authority. A commercial company must make the same notification and, if the change involves amending the corporate purpose set out in the articles of association, it will be necessary to have this recorded in a public deed and registered with the Commercial Register. In both cases, It is best to do this as soon as the change in activity actually takes place, rather than waiting until the end of the financial year.
Frequently Asked Questions about the CNAE
Is the CNAE compulsory?
Yes. Every company and self-employed person must be assigned a CNAE code upon registration. This information is required on the registration forms for both the Tax Authority and Social Security.
Can a company have more than one CNAE?
Yes. You can declare several codes if you carry out multiple activities, although one must be designated as the main one. The secondary codes carry less administrative weight.
Are the CNAE and the IAE the same thing?
No. The CNAE is a statistical classification; the IAE is a tax with its own system of categories. Although both describe economic activity, they do not share the same numbering system or purpose.
How can I find out my company’s CNAE code?
By checking the Tax Agency’s tax registration certificate, the company’s employment history report from Social Security, or using the INE search tool by entering a description of the business activity.
