Never Retire: What Being Self-Employed Really Costs in Spain vs. the US
Forget the myths and sensationalist nonsense. Here’s the real math.
People love to throw out big scary numbers about taxes in Spain.
Forty-five percent!
Half your income, gone!
Freelancers get crushed!
They’re not lying. But they are misleading.
Because Spain, like the U.S., uses a progressive tax system. You don’t pay 45% on your whole income—you pay it only on the portion of income above a certain threshold.
So when people say “Spain taxes are high,” what they often mean is: they don’t understand how brackets actually work. Or they’re sensationalizing to sell a “playbook” or consultancy.
Today, I want to cut through that noise with real numbers from my life—what I pay in Spain as a self-employed worker compared to what I’d be paying in the U.S.
First, the basics
Spain (2025–2026 brackets):
Up to €12,450 → 19%
€12,450–€20,200 → 24%
€20,200–€35,200 → 30%
€35,200–€60,000 → 37%
€60,000–€300,000 → 45%
€300,000+ → 47%
United States (2025 single filer, federal only):
Up to $11,600 → 10%
$11,600–$47,150 → 12%
$47,150–$100,525 → 22%
$100,525–$191,950 → 24%
(and so on, but these are the relevant bands for me)
On top of federal income tax in the U.S., self-employed people pay Self-Employment (SE) tax at 15.3%. Half of that is deductible from income before calculating federal tax.
Spain’s equivalent is Social Security (autónomo cotización). In my first year, I’ve been paying €80/month under the startup discount. In 2026, that rises to the standard contribution—around €470/month, according to my gestor. (Xolo—this is my referral link if you’re curious). That’s steep, but it buys into a system where healthcare, pensions, disability, and family protections are robust and universal.
Now, my numbers to illustrate the comparison between being self-employed in Spain and the United States.
Here’s a companion piece it would be helpful to read in conjunction with this one.
