In the middle of the tax season, after the recent protests by the self-employed community and in the face of new digital obligations like VeriFactu, Xolo analyzed internal data focusing on how the economic conditions of Spain’s self-employed workers have evolved. The analysis reveals a clear paradox: although average rates have risen 24% since 2021, to €42.60 per hour, the Spanish self-employed still earn about 30% less than the European average, which stands at €54 per hour (roughly $46/hour vs. about $58/hour for the European average).
The analysis, drawn from aggregated, anonymized data of thousands of self-employed professionals active in Spain and more than 150,000 independent professionals across Europe, points to a loss of profitability, relative weight, and competitiveness compared with the rest of the continent.
The income gap and the internationalization of talent
The income gap between Spain and the rest of Europe highlights a structural difference in how independent work is compensated. While the self-employed resident in Spain earns roughly €42.60/hour (about $46/hour), the European average sits at €54/hour (about $58/hour). The distance is even larger when compared with high-paying markets like Switzerland or Austria, where professionals can charge between €63 and €70 per hour, respectively (roughly $68–$75/hour).
In this context, access to international clients emerges as a significant opportunity to diversify the client base and broaden the sector’s revenue potential. According to the analyzed data, Spanish freelancers who work with clients in other markets reach average rates of about €54.90/hour (roughly $59/hour), a figure in line with European standards and clearly higher than those who operate solely in the domestic market.
“The Spanish self-employed not only charges less than their European counterparts, but they also operate in an increasingly demanding administrative and regulatory environment. The rise in rates does not always translate into real profitability, especially as costs, red tape, and tax uncertainty continue to grow,” says Ariadna Julià Brunet, Head of Operations in Xolo Spain and an expert in tax and accounting.
Evolution of purchasing power: inflation, costs and tax pressure
One of the biggest challenges for Spain’s self-employed has been balancing the rise in rates with the increasing cost of living and the cost of doing business. Between 2021 and 2025, the average rates in Spain grew 24%, rising from €34.2 to €42.6 per hour. However, this increase has not necessarily translated into higher real profitability.
The price trend helps contextualize this tension. According to INE data, Spain saw a roughly 22.8% increase in the CPI between 2021 and 2025, in a period marked by several years of elevated inflation after the pandemic. In this context, the 24% growth in self-employed rates should be read more as a response to the cumulative rise in the cost of living than as a commensurate improvement in purchasing power.
Moreover, 81.8% of freelancers confirmed their operating expenses rose during 2025, while 30% ended the year reporting losses. These figures help explain why the debate around self-employment has intensified in recent months: it’s not enough to bill more if the real margin shrinks due to rising costs, contributions, paperwork, and tax obligations.
“The rise in rates should be interpreted less as a direct improvement in a freelancer’s economic situation and more as a defensive response to a cost-heavy environment. In many cases, it helps partially offset the loss of purchasing power, but it doesn’t solidify more profitable or scalable ventures,”
says Julià Brunet.
The cost of bureaucracy and a more complex tax season
Beyond the bottom line, the Spanish self-employed face an invisible cost tied to administrative management. According to ATA, self-employed workers spend on average 200 hours a year on administrative tasks and tax, labor, and Social Security obligations, with an estimated impact of €3,000 per worker per year and a total cost of €10 billion for the sector as a whole.
The current tax season has once again highlighted this complexity. Changes stemming from the system of contributions based on real income, the generalized obligation to file for freelancers, and the need to accurately adjust income, expenses, and yields have increased the sense of insecurity among many professionals. In this context, during the 2025 Tax Campaign, Xolo’s support services tripled due to freelancers’ fear of making mistakes.
“The time a freelancer spends on paperwork is time not spent selling, producing, innovating, or attracting clients. Bureaucracy does not always appear on the income statement, but it has a direct impact on productivity and the sector’s growth,” adds the Xolo spokesperson.
More freelancers, but less real weight
Spain presents a notable contradiction: according to Social Security data, the number of freelancers remains above 3.4 million and rose by 1.2% in the last year. Yet, this numerical growth hides a loss of relative weight within the labor market: as reported by El País, freelancers accounted for 15.68% of the total at the end of 2025, their historic low.
The loss of relative weight for the self-employed points to a deeper problem than the immediate debate about contributions, taxation, or administrative duties: freelance work grows in numbers but loses structural heft within the labor market. “The challenge is not merely that there are more freelancers, but that they can build sustainable, competitive, and scalable projects. When self-employment loses real weight relative to traditional employment, a vital part of the country’s economic dynamism, innovation, and internal competition also weakens,” concludes the Xolo spokesperson.
