You can only create simple types in a model targeted with XSD.
A simple type is a data type definition for elements or attributes with text-only content. It cannot contain elements or attributes.
A simple type is defined by derivation of an existing simple type (built-in data type or derived simple type).
There are three kinds of derivation for a simple type:
For more information on simple type derivations, see Derivations: Extensions, Restrictions, Lists and Unions (XSM).
Once defined in a model, a simple type can be reused in the definition of an attribute, an element or a complex type.
Example of a simple type in a schema: