Autónomo vs Employee in Spain

To become an autónomo, you must register with two entities: Hacienda (the tax agency, via Modelo 036) and Social Security (RETA — Régimen Especial de Trabajadores Autónomos). You'll need a NIE (foreigner ID number) before you can register. If you're arriving from abroad, check the visa guide for the steps to get your NIE.

New autónomos benefit from the tarifa plana: a reduced social security contribution of typically €80/month for the first 12 months. A second 12-month extension can apply if your net income stays at or below SMI and other legal requirements are met. After the reduced period, your contribution is based on your real net income.

• Modelo 303 — VAT (IVA) return
• Modelo 130 — Income tax (IRPF) estimated payment
• Modelo 349 — Intra-EU operations (if applicable)

• Modelo 390 — Annual VAT summary
• Modelo 100 — Annual income tax return (Declaración de la Renta)

As an autónomo, you can deduct legitimate business expenses to reduce your taxable income:

• Home office: 30% of proportional utilities (electricity, water, internet)
• Internet and mobile phone (business portion)
• Computer, monitor, and work equipment
• Coworking space membership
• Professional development (courses, books, conferences)
• Business travel and accommodation
• Private health insurance (up to €500/year per person)

Your monthly payslip includes:

• Gross salary — your contractual salary before deductions
• IRPF deduction — income tax withheld by your employer
• Social security deduction — 6.35-6.4% of your gross salary
• Net salary — what hits your bank account

Spanish salaries are traditionally split into 14 payments per year, with extra payments (pagas extraordinarias) in June and December. Some companies prorate this into 12 equal monthly payments instead. Either way, your annual gross salary is the same — it's just a matter of distribution.

• 22 working days of paid vacation per year
• Public healthcare coverage
• Unemployment insurance (prestación por desempleo)
• Pension contributions
• Maternity and paternity leave (16 weeks each)

• Private health insurance (often extended to family members)
• Meal vouchers (tarjeta restaurante, €150-€220/month tax-free)
• Flexible retribution (childcare, transport, training — tax-advantaged)
• Stock options or RSUs (improving tax treatment under Ley de Startups)
• Remote work allowance

Autónomos pay estimated income tax quarterly via Modelo 130 — typically 20% flat on net profit (income minus deductible expenses). This is reconciled annually when you file Modelo 100, where the progressive brackets above apply to your total net profit for the year.

Employees have IRPF withheld monthly by the employer based on salary and personal circumstances (marital status, dependents, mortgage). The withholding approximates the progressive brackets, but you still file an annual return to reconcile.

New tax residents who haven't lived in Spain in the previous 5 years can opt for a flat 24% income tax rate on income up to €600,000 for 6 years. This applies to both employees and autónomos who relocated to Spain. It's one of the most attractive tax incentives in Europe for high earners. Check the visa guide for eligibility details.

At €50,000 gross annual income, an employee pays approximately 30% effective IRPF. An autónomo with the same gross revenue might pay around 25% effective IRPF after deductions — but remember, the autónomo also pays their own social security contributions on top of that. Check the salary guide for benchmarks on what tech roles pay in Spain.

The employer pays approximately 30% of the employee's gross salary, and the employee pays approximately 6.4%. Both amounts are calculated on the gross salary. As an employee, you never see the employer's portion — it's an additional cost on top of your salary.

Autónomos choose a contribution base. Since 2023, this is linked to your real net income via income brackets, rather than being a flat choice. The exact monthly amount changes by bracket and can be updated annually, so check the current RETA table before budgeting.

• Public healthcare
• Pension contributions and retirement benefits
• Sick leave coverage
• Maternity and paternity leave

Employees are covered by prestación por desempleo (unemployment benefits), which provides 70% of your base salary for up to 24 months depending on how long you've contributed. Autónomos have access to a more limited version called cese de actividad, which requires you to formally cease your business activity and provides lower benefits for a shorter duration.

• You have multiple clients and want to diversify income
• You want maximum flexibility over your schedule and work
• You can handle (or outsource) the admin: invoicing, quarterly filings, record-keeping
• You earn enough to justify the social security cost and still come out ahead
• You work primarily with international clients (VAT advantages)
• You want to deduct business expenses to reduce your tax bill

• You want stability, a predictable salary, and paid vacation
• You value benefits: health insurance, meal vouchers, severance protection
• You don't want to manage taxes, invoicing, or quarterly filings yourself
• You want unemployment protection in case of layoff
• You're new to Spain and prefer a simpler setup while you settle in

Some people work as a permanent employee and run a side business as an autónomo — this is completely legal in Spain. However, social security costs stack: you'll pay employee contributions through your paycheck and autónomo contributions separately. Make sure the additional income justifies the extra €230+/month in social security. Check cost of living to understand how this fits your budget.