VERI*FACTU arrives in 2027. Affected businesses will need to adapt their invoicing software. What it means for you →
Self-employed or limited company? When to switch
Liability, tax, costs and practical criteria for deciding without relying on a magic turnover figure.
Zolven · 2 min read · 22 May 2026
The main difference: liability
As a self-employed person, there is generally no separation between business and personal assets. In a Spanish limited company (SL), shareholder liability is normally limited to their contribution.
An SL's protection is not absolute. A director may be liable for breaches, mismanagement or debts in circumstances set by law, and a personal guarantee exposes their assets again.
Tax: compare the total cost
A self-employed person pays personal income tax at progressive rates. An SL pays Corporate Income Tax and, when a shareholder takes money out, salary or dividends may create additional tax.
In 2026, not every SL pays 25%. Microbusinesses with turnover below €1 million apply 19% to the first €50,000 of taxable profit and 21% to the rest; qualifying newly formed companies retain the 15% rate. The Spanish Tax Agency publishes the current Corporate Income Tax rates here. Savings are not automatic: they depend on profit, how much you reinvest and how you pay yourself.
Cost and administration
The legal minimum capital for an SL is €1. If it is below €3,000, additional reserve and liquidation-liability rules apply. There are also notarial and registry costs, commercial accounting, corporate books, annual accounts and more recurring administration.
Being a shareholder and director with effective control does not remove social-security contributions either. It normally means registering in RETA as a self-employed company director.
When it usually makes sense
There is no universal turnover threshold. Decide using an annual projection of profit and the amount you need to withdraw.
- Consider an SL when there is contractual risk, employees, investment, other shareholders or a need to reinvest profit.
- Remain self-employed when simplicity matters most, risk is low and you will withdraw almost all the profit.
- Compare personal income tax, Corporate Income Tax, social-security contributions, adviser fees and administration in the same scenario.
Keep reading
Deeds and the Companies Registry: which document to download
What the deed proves, when an information note is enough and when you need a registry certificate.
Zolven · 2 min read · 27 July 2026
Form 303: quarterly VAT explained plainly
Who must file it, how it is calculated, the deadlines and what to review before submitting it.
Zolven · 2 min read · 2 July 2026
Income-tax withholding on invoices: 15%, 7% and when to apply it
When a professional invoice must include withholding, which rate to use and how it affects Form 130.
Zolven · 2 min read · 18 June 2026
The deadline is already on the calendar. Your new gestoría can be too.
Limited places in the pilot programme for self-employed people. Tell us about your business and we’ll let you know whether Zolven can already run its back office.
We reply within 24 hours · hola@zolven.ai