Being unemployed can affect

Help going Self employed


Plus “how much business can I get?”, the big “unknown” proper going self-employed in Spain is: “how much it will cost to go independent?”. Here’s a diagram to assist you work it out.

expense independent spain taxes

How this works:

  • VAT: (aka “IVA” – stands for Impuesto sobre el Valor Añadido) different guidelines for different sectors. You perform income tax collecter for the federal government and add 21percent max on to what you earn, that you simply have the effect of declaring. Perhaps not applicable for non-EU based consumers.
  • IRPF: The IRPF (Spanish hinges on how long you’ve been self-employed. Goes up to just below €300.
  • An example: Pepe is a freelancer setting-up business in Spain. He works for Spanish businesses, along with his total earnings along with taxes included is €2242 monthly. He’s in the 1st half a year of company.

  • 2242€ could be the price including VAT – 121per cent associated with the total. The beds base amount (before VAT) is:
  • After that take-off 7per cent IRPF:
  • 2000/100 * 93 = €1860 (+€140 passed in by businesses he works for)
  • After that lose €50 personal security…
  • … Pepe is left with €1810. 80per cent of just what he began with.

    Inside 2nd year, personal protection rises to 267€ (unless Pepe is a lady under 35 or a man under 30). His IRPF has gone up to 15per cent, leaving him with around 60-50percent of their original earnings.The cost of beginning a business in Spain has actually increased to 40-50percent of Pepe’s earnings.

    Too-much? Numerous think-so. Inform me your viewpoint below.

    This just addresses the most frequent freelance/business designs. Some companies – particularly agriculture and fishing – tend to be recharged various prices.

    I am hoping this has aided you to definitely measure the price of going freelance in Spain. If you are contemplating setting up business, you might also choose to have a look at my help guide to registering as one-man shop.



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