{"id":62927,"date":"2025-08-18T10:31:16","date_gmt":"2025-08-18T10:31:16","guid":{"rendered":"https:\/\/emprendix.com\/?p=62927"},"modified":"2025-08-18T10:31:16","modified_gmt":"2025-08-18T10:31:16","slug":"limited-company-or-freelancer","status":"publish","type":"post","link":"https:\/\/emprendix.com\/en\/limited-company-or-freelancer\/","title":{"rendered":"Limited Company or Freelancer"},"content":{"rendered":"

Choosing between registering as a freelancer in Palma de Mallorca<\/strong><\/a> or incorporating a Limited Company (SL)<\/strong> in Spain depends on your expected turnover, the risk of the activity, the need to protect your assets, and your growth plans. In this guide, we explain the key differences and in which cases each option is more suitable. If you need help, you can count on a Gestor\u00eda in Palma de Mallorca<\/strong><\/a> expert in entrepreneurship and Creating an SL in Palma de Mallorca<\/strong><\/a>.<\/p>\n

Main differences between freelancer and SL<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n
Aspect<\/th>\nFreelancer<\/th>\nLimited Company (SL)<\/th>\n<\/tr>\n<\/thead>\n
Incorporation<\/td>\nQuick and simple, few procedures<\/td>\nMore formal: statutes, public deed, and registry<\/td>\n<\/tr>\n
Liability<\/td>\nUnlimited (you are liable with your assets)<\/td>\nLimited to the capital contributed (min. \u20ac3,000)<\/td>\n<\/tr>\n
Taxation<\/td>\nIRPF 19%\u201347% (depending on tax brackets)<\/td>\nCorporate Tax 25% (15% for the first two years with profits)<\/td>\n<\/tr>\n
Initial Cost<\/td>\nVery low, no minimum capital<\/td>\nMinimum share capital \u20ac3,000<\/td>\n<\/tr>\n
Social Security<\/td>\nFlat rate from \u20ac80\/month (depending on requirements)<\/td>\nCorporate freelancer (generally higher fee)<\/td>\n<\/tr>\n
Accounting obligations<\/td>\nSimplified (income\/expense books)<\/td>\nFormal accounting, books, and annual accounts<\/td>\n<\/tr>\n
Image and financing<\/td>\nLess corporate, more limited credit<\/td>\nProfessional image and better access to financing<\/td>\n<\/tr>\n
Growth and partners<\/td>\nFocused on individual activity (possible subcontracting)<\/td>\nAllows multiple partners, scalability, and investor entry<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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When is it better to be a freelancer?<\/h2>\n