SL vs self-employed (autónomo)

It is the big question for anyone whose activity starts making real money: do I stay self-employed (autónomo) or create a Sociedad Limitada? There is no single answer, but there are clear criteria for deciding.

How each one is taxed

The autónomo pays tax on net income through personal income tax (IRPF), a progressive tax: the more you earn, the higher the percentage, reaching 45-50% in the top brackets depending on the region. The SL pays Corporate Income Tax on its profit at 25% (15% in the first two profitable years for newly created companies).

At first glance the SL wins. But there is a decisive nuance: company profit only reaches your pocket when distributed as dividends or salary, and then it is taxed again under your IRPF. If you need to withdraw all the profit every year to live on, the SL’s tax advantage fades. The SL shines when you can leave part of the profit in the company to reinvest it.

The indicative threshold

As a rule of thumb, the SL starts paying off fiscally when net profit exceeds €40,000-60,000 a year and you can retain part of it in the company. Below that, staying autónomo is usually as efficient or more — and much cheaper to run. There is no magic number: it depends on your region, how much you withdraw and your growth plans.

Liability: the big non-tax difference

As an autónomo you are liable with all your personal assets for business debts. In an SL, shareholder liability is limited to the capital contributed: your home and personal savings are protected (except for personal guarantees you sign — banks usually ask for them). If your activity carries risk — supplier debts, potential claims — this point alone can justify the SL.

Running costs compared

Being autónomo costs the monthly Social Security fee plus a simple gestoría. An SL means: accounting and tax advisory (€1,500-4,000/year), filing annual accounts, official bookkeeping and more corporate obligations. Running an SL costs €2,000 to €5,000 a year in overhead. That is the toll the tax saving must offset.

When the SL makes sense (beyond taxes)

• There are several shareholders.
• You want to protect your personal assets.
• You will hire employees or seek financing: banks and investors prefer companies.
• Professional image matters with clients and suppliers.
• You plan to grow and reinvest profits.

When staying autónomo is better

• You are starting out and turnover is still low.
• You withdraw all profit to live on (no tax deferral possible).
• Your activity carries little asset risk.
• You want the simplest, cheapest structure possible.

In short: the SL is not “better” than being autónomo — it is a different tool. It pays off when profit, risk or growth plans justify it, not as a fashion statement.

Informational content updated October 2026. This is not tax advice.