Self-employed vs. employee: when each is best, tax and labour analysis 2026

Self-employed vs. employee: which regime is best?

The choice between self-employment and salaried employment has deep tax, labour and social protection implications. In Spain, the "bogus self-employment" issue generates many inspections by the Labour Inspectorate and Tax Agency.

Social Security contributions

Self-employed (RETA): progressive quota based on actual net income (reform of January 2023). Ranges from ~€200/month to ~€590/month.

Employee: 6.48% of gross salary (worker's share) + ~31% employer's share.

IRPF taxation

Self-employed persons pay on economic activity income: may deduct business expenses (premises, vehicle, SS contributions). Quarterly advance payments required.

Employees pay on employment income: employer withholds tax monthly. Standard employment reduction of up to €5,565/year.

Bogus self-employment

The Labour Inspectorate deems a labour relationship hidden when:

• Economic dependence (>75% income from one client).
• Integration in client's organisation (fixed hours, control).
• No real entrepreneurial risk.

Lexiel helps tax and labour advisors analyse the legal nature of work relationships, detect bogus self-employment indicators and prepare arguments before the Labour Inspectorate.