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What Expenses Will You Have If You Become a Self-employed

Social SecurityTax Agency (Hacienda)

Expenses freelancer

If you are self-employed and want to overcome the month economically, you must face a set of expenses. Without them, you will not be able to continue with your activity. In today’s article, we will see the necessary expenses that any self-employed worker in Spain usually has.

1. Social Security payments

As you know, as self-employed you can choose the base you want to pay. The vast majority choose the minimum base to pay less. 

The minimum self-employed Social Security payment without any bonus is around 284 euros and is a necessary expense to continue with the activity. If you have never been registered as self-employed or have not been in the last five years, you can benefit from discounts on payments.

Related: Freelance Guide


2. Workers

It is possible that for your activity to progress, you have to contract employees. This expense varies wildly, depending on the types of contract, the agreement to be applied, working hours and the number of workers you have hired. 

Get the idea that you will have to pay for your worker’s social insurance about 40% of what you will pay in normal conditions.

Example: If you will pay your worker € 1000, 40% is €400, so you finally pay € 1400 to have an employee. That’s why we consider wiser to contract freelancer’s services.


3. Tax adviser

As a freelancer, you have to be aware of the forms, tax filings, tax changes, and legal. The most comfortable is to contract a tax adviser. The average price in Spain is around 60 and 100 euros. 

At this point, we can help you, since with our Basic plan we charge you € 50 per month. We prepare your taxes and domicile them in your bank account, so you do not have to worry if you have done well and waste time paying the forms by going to the bank at the last moment. See what we include.


4. The cost of electricity, water, gas, telephone or Internet

If you have a place for the development of your activity, these types of expenses are inevitable. Even if you work at home, the telephone and the Internet are usually necessary expenses. 

Within this point, we could include the maintenance of your office, that is, the purchase of materials. The lessor must pay the IBI, but in some contracts, it is specified that the tenant of the premises must pay it.


5. The website

To get customers, manage and generate business, it is essential to have a web page where you can set your prices and the characteristics of your services. 

Obviously, all this has a variable cost, but it is necessary to assume. And of course, not to mention the cost that your page implies according to the Data Protection Law. 


6. Insurance

Depending on the type of activity you develop, you have to contract insurance, and this should be an essential expense and not relegated to the background.


7. Purchase of merchandise

You have to use an amount of your budget to replenish the product you sell. To do this, you should calculate the prices of your products to be competitive.

Do not forget that if you offer a quality product, your customers will recommend it with pleasure, even if it has a higher price than what others offer for less quality.

Related articles: How To Earn More And Make Your Customers Happy (without lowering prices)


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