If you earn more than €70,000 as an autónomo, switching to a Sociedad Limitada (SL) can save you thousands of euros a year. The numbers are clear: you could keep up to €14,000 more for every €100,000 invoiced, by using corporate tax, a salary-plus-dividends split, and a wider range of deductions.
As an autónomo, your income is taxed progressively: from 19% to 47%, depending on your region. On top of that come Social Security contributions, calculated on real income brackets. If you invoice €100,000, you face an effective IRPF rate close to 45% plus roughly €10,000 in contributions. You end up with around €69,000 net. See the real autónomo costs for the full breakdown.
SLs pay a flat 25% corporate tax rate (15% for the first two years). Income can be split between salary (deductible for the company) and dividends (taxed at 19–23%). Profits not withdrawn stay in the company and are only taxed when distributed.
Example: if your SL earns €100,000 and reinvests €20,000, you pay 25% corporate tax only on €80,000. Whatever you don't need for personal expenses stays in the company untaxed until you take it out.
You need a valid business justification: operating in a sector with real risks, hiring employees, or having a clear commercial purpose. The authorities expect a genuine reason beyond tax optimisation.
It's worth making the switch if:
Below that threshold, the tax saving doesn't always justify the setup and accounting costs.
Companies pay a flat 25% corporate tax rate. For small businesses, the first €120,000 of profit may qualify for the reduced 15% rate during the early years.
With an SL you can pay yourself a combination of salary and dividends.
That flexibility lets you significantly reduce your total tax burden.
As a managing partner, you contribute only on your declared salary, not on total business revenue. The saving can be substantial compared to an autónomo who contributes on everything they invoice. More on autónomo Social Security contributions.
An SL can retain profits to reinvest or defer tax. You can put them back into growth, assets, or property without paying tax until you withdraw them.
It's more complex than being an autónomo, but a good gestor makes it straightforward. Read the complete guide to the Sociedad Limitada for the detailed step-by-step.
Being an autónomo is quick and simple, but not always the most tax-efficient structure. An SL lets you pay less tax, reduce contributions and reinvest more. If you invoice more than €70,000 a year, it's worth running the numbers.
Starting as an autónomo first? Read the complete autónomo guide and what taxes an autónomo pays.
