Autónomo or Company? The freelancer’s guide to working legally in Spain 💸
Should you register as an autónomo? When does it make sense to open a company? And what mistakes should you avoid? We asked one of Spain’s top legal advisors to explain.
One of the first decisions many freelancers, consultants and entrepreneurs face after moving to Spain has nothing to do with visas or housing.
It’s much simpler.
How should you invoice your clients?
Should you register as an autónomo, Spain’s version of self-employment? Or should you create a Sociedad Limitada (SL)—the equivalent of a limited liability company (LLC)?
It’s a question we receive constantly from readers of The Bubble. Every time we publish an article about freelancing, taxes or entrepreneurship in Spain, our inbox fills with variations of the same dilemma.
To help answer it, we sat down with Héctor López Vázquez, global head of corporate law at Lexidy, an international law firm that helps entrepreneurs, freelancers and international professionals establish themselves in Spain.
Here’s what we’ll cover in this guide:
✅ Should you register as an autónomo or set up a Sociedad Limitada (SL)?
✅ When opening a company actually starts making financial sense.
✅ Do companies really pay less tax than freelancers?
✅ How much does it actually cost to incorporate a company in Spain?
✅ The biggest legal advantage most freelancers overlook.
✅ What changes if you work with international clients.
✅ The mistakes founders make when starting a business with partners.
✅ Whether Hacienda treats companies and autónomos differently.
✅ Our practical decision framework to help you choose the right structure.
The short answer
If you’re just getting started…
➡️ Register as an autónomo.
If your business begins generating significant revenue—or you’re building something bigger…
➡️ Consider opening a company.
The key is understanding when that transition makes sense.
Start simple
One of the biggest misconceptions, according to Héctor, is that people think they need to choose between one option or the other.
In reality, many businesses do both.
His recommendation is straightforward:
Register as an autónomo first.
Start invoicing clients immediately.
Once your business has proven itself, transition into a company if it makes financial and legal sense.
Setting yourself up as an autónomo can often be completed in 24–48 hours, meaning you can start invoicing almost immediately.
The €50,000 rule
If there’s one number worth remembering, it’s this:
€50,000
According to Héctor, this is roughly the net revenue level where opening a company starts becoming financially attractive. As with most tax thresholds, the number is a signal to start the conversation, not a guarantee; your specific numbers and structure are what actually decide the outcome.
Why?
Because Spain’s personal income tax becomes increasingly steep as your income rises.
Companies, meanwhile, pay:
15% corporate tax during their first two years (provided you’re starting a genuinely new business). Whether that reduced rate actually applies to your case depends on the specific, it’s the kind of detail worth confirming with an adviser before you assume it does.
25% afterwards
That doesn’t automatically mean everyone earning €50,000 should incorporate.
But it is the moment when you should begin running the numbers.
Rule of thumb: Once your business consistently earns around €4,000 net per month, it’s worth speaking to a lawyer or tax adviser.
When should you skip autónomo and create a company from day one?
Revenue isn’t the only consideration.
Héctor says he’d often recommend incorporating immediately if:
