Working in Spain: Self-Employed vs. Employee, Which One Is Better?

Should you work as self-employed in Spain, or is it better to get an employment contract with a company? The answer does not only depend on how much you want to earn. You also need to consider who finds the clients, who pays the expenses, which taxes you need to pay, what labor protection you have, and, if you are a foreigner, what type of work your residence authorization allows. Working as an employee offers more stability, a monthly salary, and stronger labor protection. On the other hand, being self-employed gives you more freedom to choose clients, set your rates, and organize your activity, but it also comes with more tax, administrative, and financial responsibility. In this video, we explain the main differences between working as an employee and working as self-employed in Spain, what obligations each option has, and what you should check before you start working. We cover in detail: What it means to work as an employee in Spain What an employment contract includes Why gross salary is not the same as net salary How Social Security contributions and IRPF withholding work What it means to work as self-employed Which steps you need to take to register as self-employed How VAT and IRPF work for self-employed workers Which expenses a self-employed worker can deduct What labor protection an employee has compared to a self-employed worker What a false self-employed worker is and why it can be a problem What you should check if you are a foreigner and want to work legally in Spain How to move from student status to work as an employee or as self-employed If you do not know whether it is better for you to work with an employment contract or register as self-employed, at Balcells Group we can help you review your permit, analyze your tax situation, and define the best option to work legally in Spain. Book your consultation with our immigration and tax team here: 👉 https://live.vcita.com/site/7r2ags5gr... Use the code YOUTUBE10 and get a 10% discount on your next consultation. You can also contact us at: [email protected] Follow us on social media for more information about living and working legally in Spain: Instagram: @balcellsgroup TikTok: @immigrationlawyerspain Subscribe to the channel to follow our series “Moving to Spain Without Making Mistakes” and understand, step by step, how to live, work, and build your future in Spain. 00:00 - Introduction: Employee vs. Self-Employed in Spain 00:33 - What does it mean to be an employee? 01:20 - Gross Pay vs. Net Pay in Spain 01:55 - What does it mean to be self-employed (Autónomo)? 02:25 - How to register as a self-employed worker 03:22 - Taxes for the Self-Employed: VAT & IRPF 04:29 - Deductible expenses for self-employed individuals 04:58 - Employment protection differences 05:37 - Can foreign nationals choose either option? (Work Permits) 06:05 - Switching from student status to employee status 06:48 - Conclusion & How to get legal advice