Sole proprietorship or company in Spain: tax comparison
Taxes and contributions for a sole proprietor under each available system and for your own company, for a resident of the chosen country with the same profit.
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Form
Autónomo (self-employed)
Sole proprietorTrabajador autónomo — estimación directa simplificada
The monthly Social Security contribution depends on net income (15 brackets). Profit minus contributions and a 5% allowance for hard-to-document expenses (up to EUR 2,000) bears IRPF at the state and Madrid scales.
Conditions
The simplified direct method applies if prior-year turnover is no more than EUR 600,000. VAT at 21% applies from the first euro (no exemption threshold for these services); quarterly returns 303 and IRPF prepayments 130.
The contribution uses the minimum base of the bracket the income falls into; a higher base may be chosen (higher pension). The reduced 'tarifa plana' for new autónomos is not included (temporary).
CompanySociedad de responsabilidad limitada unipersonal (SL)
Corporate tax in 2026: with turnover below EUR 1 million, 19% on the first EUR 50,000 and 21% on the rest (below EUR 10 million — 23%, otherwise 25%). Dividends fall into the IRPF savings base: 19–30%. An owner-director with control must register as autónomo societario.
Conditions
Reduced rates depend on company turnover (the calculation uses this year's revenue) and do not apply to asset-holding companies (entidad patrimonial).
Autónomo societario contributions are based on dividends minus 3%, but on a base of at least EUR 1,424.40 a month (the 2026 minimum base of general-scheme group 7); VAT (21% from the first euro) is not included.
CompanySociedad limitada de nueva creación — tipo reducido del 15 %
Same as the SL, but corporate tax is 15% in the first year with a positive tax base and the following year (lower than the 19/21% small-company rates).
Conditions
Only for a newly created company carrying on a real business (not holding or asset management) that does not continue an activity the owner already carried on personally or through another company.
The calculation shows one of the two reduced-rate years; from the third year the general rate applies (the 'SL company' form).
Business activity: IT / consulting services for business clients (professional activity, IAE section 2)
One owner, a Spanish tax resident living in Madrid, with no employees, no other income and no children, full year, general personal allowance only.
Autónomo contributions are treated as paid in the same year at the minimum base of their bracket; the art. 32.2.3.º LIRPF reduction for income below EUR 12,000 is included, the single-client reduction (art. 32.2.1.º) is not; VAT is not included.
For the SL the owner draws no salary; after-tax profit is either paid out in full as dividends or kept in the company. The owner pays the autónomo societario contribution personally and it does not reduce taxes.
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