I would hardly call myself a pro in this area, but being legally registered freelance ("autónoma"), I can give you my take on the issue.
My question to you is, if you are "autónomo" why the heck would you want to work for an academy?
Unless, instead of academy you meant to say consulting agency.
As I understand it, academy pay runs from 9-12€ per hour. Generally 9-10€ per hour with a bona fide laboral contract and closer to 12€ per hour if you are being hired under the table (no contract, no taxes being paid, etc). Consulting agencies, as third party brokers, usually pay more. The going rates range from 15-23€ per hour. The lower end of the scale for those working under the table and the higher end of the scale for those who are legally registered freelance teachers. Three consulting agencies that I know of: Training Express (18-20€ per hour), Company Class (20€ per hour after the first three months of the contract) and English Jet (23€ per hour...must have at least 5 years of proven TESL experience...or so they say).
The term "autónomo" doesn't refer to being freelance but the actual regimen you are registered with in the Seguridad Social (régimen de autónomos). So, whoever suggested that you register autónomo and not pay social security has no clue what they are talking about.
Registering freelance with hacienda (the tax authority) simply means that you are self-employed "cuenta propia" (self-employed) rather than "cuenta ajena" (employed by another party). Once you register "por cuenta propia", you are essentially in the system. This is most likely what the academy meant when they told you to register “autónomo”.
Theoretically Hacienda and Seguridad Social "talk" to each other and at some point, compare notes to make sure that no one is ducking the system. If you don’t take the initiative to register with Seguridad Social under the “regimen de autónomos, it will automatically be done for you when the notes are compared. This registration will be retroactive to the date that you registered with Hacienda, and you will be slapped with a fine which is percentage based (not a flat fee). So, the longer you duck the system, the more it will cost you in the end when you get caught.
The concept behind being a legally registered freelance/self-employed worker is that you are self-employed. Being self-employed brings with it a host of things that you, as the professional, not the consulting agency/academy, are responsible for.There are benefits and drawbacks to it and only you can make the decision. No academy should tell you what to do. You are right, what was suggested to you is very shady on a couple of counts. You need to know your responsibilities and rights when you register as freelance.
Just briefly some of your responsibilities include the following:
- Provision of your own teaching materials
- Provision of your own transportation
- Monthly invoicing of the client (in this case the academy or consulting agency)
- Deduction of the IRPF (your-self employment tax) at the rate of 15% on the overall invoice
- Filing and paying your taxes quarterly
- Paying social security monthly. Minimum payment is in the ballpark of 230€ per month.
Your rights include (among other things):
- Setting your own rates and conditions (whether or not the consulting agency wants to hire you at your rates and conditions is another story)
- Earning credits towards a pension due to your social security payments
- Deducting your expenses (teaching materials, transport, etc) when you file your taxes.
Generally speaking, only those English teachers who are here for the long haul (i.e. semi-permanently, if not permanently), and have a good command of the Spanish language to negotiate direct contracts with businesses and/or have office of their own, are the ones who register freelance. Why? Because it is expensive and requires a good degree of administrative paperwork. Registering freelance doesn't cost anything (except time, hassle and paperwork to fill out). However, it goes hand in hand with registering with social security as I mentioned earlier. That is what's expensive.
What your academy suggested that you do isn’t the first time that I have heard it. However, you are putting yourself at risk and the academy/consulting agency is putting itself at risk, legally.
Despite the expense, for the professional who is looking at the long term rather than the short term, registering freelance is really the best way to go. It gives you more control over your working schedule and the rates that you charge. As you build your business and client network, your income will grow from year to year. Working with a third party, you will only get a slice of the pie as most consulting agencies charge their clients in the ball park of 45€ per hour (and then pay the subcontrated teachers the rates stated previously). However, there are many businesses out there who hire freelance teachers directly. It’s just a matter of you shaking your butt a bit and finding them. Frankly, I prefer earning 30€+ per hour working directly with a company than 18-20€ being subcontracted.
But self-employment isn’t for everyone. Sometimes it’s easier just holding your hand out to the consulting agency/academy for the monthly paycheck and not be bothered with administrative details, marketing, etc. But if you are going to do that, make sure they give you a legal laboral contract where they are making the social security payments for you and you have a right to vacation time, paid holidays etc. If you don't get that, you are being shortchanged.
I could write a book about the issue as I have been through a lot of different situations which are what prompted me to go freelance. Two years into it and I am almost at the same earning level as I was when I left the States.
It’s your call.
If you want more detailed information, feel free to drop me PM and we can get together for coffee or something. Otherwise, the real meat of what you need to know is posted above. Good luck!
) telling you explicitly to go autonomo and not pay social security, then when you get busted, you can cover your ass and blame the evil school!!! 
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