Taxes for autonomos can be quite high. Transitioning from the Spanish autónomo tax system to an Estonian OÜ for a freelancer in Spain can yield substantial financial benefits. Below is an estimated tax comparison for a freelancer earning €50,000 annually:
- Spanish Autónomo: Estimated €15,000 - €20,000 in income tax and social security contributions, significantly reducing net income and increasing financial strain.
- Estonian OÜ: Estimated €5,000 - €8,000 in business expenses and deferred corporate taxes (as profits reinvested in the company remain tax-free), allowing for greater financial flexibility and business expansion.
By adopting the Estonian OÜ framework, professionals can achieve annual tax savings exceeding €10,000, subject to their specific financial and operational structure. Additionally, the ability to defer corporate taxes until dividends are withdrawn provides further financial advantages over the traditional Spanish autónomo system.