Autónomo vs SL in Spain: which should you choose?
By the Relocatia editorial team· published · last reviewed
In short
- An autónomo is you, trading in your own name: quick to set up, with unlimited personal liability and progressive income tax.
- An SL is a separate company: since Ley 18/2022 it can be formed with €1 of capital, it limits your liability, and it needs a notarial deed and fuller accounts.
- Either way you register with the tax agency on Modelo 036; as an autónomo you also join the RETA social-security scheme before you start.
- The better choice depends on your expected profit, risk and plans — model both on real numbers before deciding.
If you’ll earn money in Spain, you’ll usually choose between registering as an autónomo (self-employed) or forming an SL (limited company). Here’s the short version.
Autónomo
Cheaper and faster to set up, simpler admin, and often best at lower income levels. The trade-off is unlimited personal liability and progressive personal tax rates as you grow.
SL (Sociedad Limitada)
More setup cost and heavier accounting, but it limits your personal liability and can be more tax-efficient as profits rise. We model both against your real numbers before you decide.
Side by side
| Autónomo | SL | |
|---|---|---|
| What it is | You, trading in your own name | A separate company you own |
| Liability | Unlimited, personal | Limited to the company’s assets |
| Minimum capital | None | €1 (Ley 18/2022); while under €3,000, 20% of profit goes to a reserve |
| How it starts | Modelo 036 and RETA registration | Notarial deed, Registro Mercantil, Modelo 036 |
| Income tax on profit | Personal income tax (IRPF), progressive | Corporate tax on the company; you are taxed on what you take out |
| Admin | Quarterly returns (e.g. Modelo 130 and 303) | Company accounts and filings, plus your own returns |
Non-EU nationals also need a residence status that allows self-employment before trading in either form — check that first, because it can decide the question for you.
This is general information, not legal or tax advice for your case. Rules change — check the review date and the sources, and make decisions with a licensed professional.