From what income level is it worth creating an SL?

There's no exact figure, it depends on your desired salary and expenses. As a general rule, with net profits (after expenses) above €40,000-50,000 annually, SL is usually more advantageous due to the differential between IRPF (up to 47%) and Corporate Tax (25%). Use the calculator with your real data to know for sure.

What is the 15% reduced Corporate Tax rate?

If it's your first SL and you haven't been an administrator of another company in the last 5 years, you can apply 15% Corporate Tax (instead of 25%) during the first 2 fiscal years with profits, on the first €300,000. It's a tax advantage to encourage entrepreneurship.

How much does it cost to create and maintain an SL?

Creating an SL costs between €500-1,000 (notary, commercial registry). Annual maintenance includes accountant (€1,800-3,000/year), account filing, corporate tax. Fixed costs are significantly higher than as freelancer (accountant ~€600/year).

Can I deduct more expenses in an SL than as freelancer?

Not necessarily. Deductible expenses must be related to the activity in both cases. The difference is in how they're taxed: in SL you first pay Corporate Tax on company profit, then IRPF if you distribute dividends. Allows more flexibility in tax planning.

What happens with Social Security in an SL?

As SL administrator you contribute to General SS Regime, not as self-employed. Contributions are higher (company pays ~36%, you ~5% of gross salary), but in return you have better coverage (unemployment, work accidents). Total quota can exceed self-employed.

Can I switch from freelancer to SL without deregistering?

Yes, you can create an SL and continue as freelancer temporarily to make the transition. Many entrepreneurs create the SL, gradually transfer the activity, then deregister as self-employed. You can also maintain both if you do different activities.

Freelancer vs Limited Company

Find out whether it's better to continue as a freelancer or create a Limited Company. Complete tax comparison with IRPF, self-employed quota, Corporate Tax calculation and personalized recommendation.

Your business data

Expected annual revenue

€

Total income before expenses

Business expenses

Percentage of expenses on revenue

Desired monthly salary (if SL)

€

As company administrator

First time entrepreneur?

No, I've had a company before

Yes, first time

Applies 15% reduced Corporate Tax rate first 2 years

Enter data to see the comparison

How to use the Freelancer vs SL comparison

Comparing both options is very simple. You only need 4 data points:

Enter your annual revenue

Estimate how much you'll invoice in a year. It's your business volume before subtracting expenses.

Select the percentage of expenses

Choose what percentage of your revenue are business expenses (rent, materials, software, etc.). If unsure, use 20-30%.

Define your desired monthly salary

If you created an SL, what salary would you like to pay yourself as administrator? This affects SS and IRPF calculation.

Indicate if it's your first company

If you've never had an SL, you can benefit from the reduced 15% Corporate Tax rate for the first 2 years (instead of standard 25%).

Key concepts for your decision

Understand the fundamental differences between being a freelancer and having a Limited Company:

Self-Employed Regime

As freelancer you pay IRPF (19-47% by brackets) on your net income and self-employed quota based on real income (2026: bracket system). Simple management but no asset separation.

Limited Company (SL)

The SL pays Corporate Tax (25%, or 15% first 2 years for entrepreneurs). You receive a salary as administrator (with IRPF and General SS Regime). More complexity but asset protection.

Break-even point

Approximate revenue from which SL starts to be more tax advantageous. Varies by expenses, salary and whether you apply 15% Corporate Tax. Typically between €40,000-60,000 net profit.

Liability

As freelancer you're liable with your personal assets. In an SL, your liability is limited to contributed capital (except cases of fraudulent management or gross negligence).

Why use our comparison tool

Designed to help you make the best decision for your business.

Complete and accurate tax comparison

Exact calculations of IRPF, self-employed quota, Corporate Tax and Social Security. Includes accountant and formation costs for a real comparison.

Recommendation based on your data

There are no magic rules. The break-even point varies by your revenue, expenses and desired salary. The calculator tells you what's best for YOUR specific case.

And when you decide, invoice with Invoo

Whether freelancer or SL, with Invoo you invoice in 30 seconds and your accountant sees everything in real-time. Verifactu included. €10.90/month, no fine print.

Frequently asked questions about Freelancer vs SL

Other calculators you might find useful

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Income Tax Calculator

Calculate your annual IRPF with updated tax brackets

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Net Salary Calculator

Find out what you really take home after taxes

Calculadora

Self-Employed Quota Calculator

Find out how much you'll pay based on your real income

Now you know what works for you. Invoice without complications.

With Invoo you invoice in 30 seconds — just invoicing, no features you won't use. Your accountant sees everything in real-time, you comply with Verifactu automatically. Freelancer or SL, €10.90/month, all included.