Eight out of ten self-employed respondents living in Spain believe the system favors employees over those who work for themselves. Yet, 61% want to stay in the country indefinitely and 54% feel that the Spanish lifestyle makes up for earning less than they could elsewhere. The findings reflect the apparent tension between the difficulties that these professionals face in building their own businesses and their willingness to establish a long-term life in Spain.
This is one of the key conclusions of The State of Self-Employment in Spain 2026, by Xolo, which combines tax and accounting expertise with its own technology to serve thousands of freelancers in Spain. The study gathers responses from more than 400 professionals who took part in a survey on self-employment in Spain in September 2026.
The study sample skews predominantly migrant in profile: 86.7% of participants do not hold Spanish nationality and 84% identify as migrants who are building a life in Spain, rather than viewing themselves as a temporary expatriate. The survey sheds light on the conditions under which this group works, many of whom are tied to the international market and aspire to settle in Spain long-term.
A community that works internationally and wants to stay in Spain
Eight-five percent of respondents say their best-paid work comes from outside Spain, while 68% primarily serve international clients. Additionally, 57% report annual incomes above 30,000 euros and 32% exceed 50,000 euros.
Nine-two percent rely on self-employment for all or most of their income, and 99% report being registered as self-employed in Spain. Regarding future plans, besides the 61% who want to stay indefinitely, another 18% plan to remain long-term and fewer than 7% expect to leave in the coming years.
These results offer a lens on Spain’s ability to attract and retain international talent. The fact that 54% of participants believe the lifestyle in Spain offsets earning less than they could earn in other countries suggests that income is not the sole factor shaping their view of the country.
The fees and taxes, at the heart of the discontent
Despite deep roots in Spain, respondents describe difficulties in developing their activities here. Seventy-nine percent agree with the statement: “In Spain everything is set up to reward employees more than the self-employed.”
Sixty-six percent believe the monthly social contributions penalize those just starting out, while 62% think what they pay bears little relation to what they receive in return. Additionally, 63% say they have difficulty charging what their work is worth.
Open-ended responses reinforce this perception: of 276 people who explained what they would change about the system, 219 mentioned costs, taxes, or administrative complexity. The social contributions and fees drew 124 mentions, while taxes, personal income tax (IRPF), VAT, and the Spanish tax authority (Hacienda) accounted for 118 mentions.
Xolo’s internal data show a similar economic pressure among active freelancers on its platform. Eight-one point eight percent (81.8%) reported higher operating costs in 2025. And, according to data from the National Federation of Associations of Self-Employed Workers (ATA), 30% of freelancers ended the year in the red. These results illustrate that higher fees do not automatically translate into better profitability when other costs rise as well.
The administrative burden and tax uncertainty
The relationship with the authorities is another major area of concern. Seventy-seven percent of respondents say they live with anxiety about the possibility of making a mistake with the Spanish tax authorities, while only 15% trust that a good-faith error would be treated fairly. Additionally, 70% find it difficult to obtain reliable and clear guidance on taxes and obligations, and 80% say they could not manage the paperwork tied to their activity without paying someone to help.
The concern persists with experience: this anxiety is expressed by 82% of those who have been registered for less than a year, about 75% of those who have been registered between one and ten years, and 76% of those with more than a decade of self-employment. Only 18% feel that self-employment has become easier since they started.
“Although the study sample is predominantly international, many of the concerns reflected are also found among Spanish freelancers. The uncertainty with the tax authorities, the complexity of the procedures, or the burden of the fees are common difficulties among the professionals we accompany. At Xolo we combine technology with a team of tax and accounting experts: we take care of your taxes, your accounting, and your obligations to the tax authorities so you can work with greater peace of mind,” says Ariadna Julià Brunet, Head of Operations and expert in accounting and taxation at Xolo Spain.
Despite the difficulties, many would choose self-employment in Spain again
Economic and administrative challenges also shape business decisions. Seventy-nine percent say the system makes them less willing to take risks with their business, 52% admit that some days they wonder if remaining registered is worth it, and 43% say that some months bureaucracy drains more energy than the actual work.
Nevertheless, the overall assessment is not exclusively negative. When asked whether they would again choose self-employment in Spain, 42% say yes, versus 27% who probably or definitely would not, and 31% who are unsure.
These results therefore reflect a dual reality: a community of professionals who are largely migrant and want to continue living and working in Spain, yet feel that the conditions for pursuing self-employment could be improved.
