Tax simulator 2026Freelancer vs. Company
Comparative estimate with corrected calculations, approximate values. Does not replace professional tax advice. Includes mandatory accounting costs (CC) in the company analysis.
Annual gross revenue
40 000 €
Annual deductible expenses
5000 €
Company settings (Ltd.)
Manager monthly gross salary
1200 €/mo
% of profits as dividends
70%
Annual accounting costs (mandatory in Ltd.)
1800 €/year
In a company, real expenses are 100% deducted from profit. As a freelancer, the 0.75 coefficient implies a 25% implicit deduction, regardless of actual expenses.
Comparative advantages of the company
154 €
Social Security savings Company vs. Freelancer
-
Expense deduction advantage
IRC 16,5%
vs. marginal IRS 35,5% on excess income
Comparative results
Freelancer
Simplified regime, Category B
Company
Ltd., general corporate tax regime
+ 3109 € retained in company as equity (avoids 28% dividend withholding)
Breakeven by revenue
The grey line is the freelancer take-home; the magenta line is the company take-home. The dashed vertical line marks the current selected revenue. The crossing point is the breakeven where the company becomes more advantageous.
Tip: Adjust the manager's salary and dividend percentage to find the optimal mix between immediate income and capital retention. Keeping profits in the company can be advantageous for future investment.
Want a personalized analysis for your case?
The Grupo Your team can help you choose the most advantageous tax structure.
Informative simulator 2026. IRS rates 2025 (approved brackets). SME corporate tax 15% (first €50k) + 19% + ~1.5% surcharge. Freelancer SS 21.4% on 70% revenue.
Values do not include personal tax deductions (health, housing, dependents) or minimum existence threshold. Consult an accountant for personalized analysis.
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