A common question in our office is the issue of corporate and non-corporate self-employed: the key question is whether you are part of a company and whether you have control and functions within the company and whether you comply with certain percentages within the company.

1. – The individual self-employed. Self-employed persons who work only for the business, there is no difference between them and the company. For tax purposes, the company and the self-employed person are the same. He/she is liable for debts with his/her personal assets. He pays VAT and personal income tax and at the end of the year the personal income tax brackets are applied to the taxable base of his annual salary.

2.- The corporate self-employed. They work as a shareholder and limit their liability to the capital of the company. As a partner, being linked to a company, he/she pays a fixed percentage established by the Corporate Income Tax. The minimum contribution base of the corporate self-employed is higher than that of the common self-employed.

You may or may not work in the business, in which case, the IRPF Law makes it very clear how this should be done: with an invoice or with a salary.

Do not hesitate to consult us if this is your case