How an autónomo who is also the director of an SL can pay themselves

If you are the director of a Spanish SL and are also registered as an autónomo, there are different ways to receive money from the company. The appropriate option depends on the nature of the functions you perform, the company’s articles of association, and your tax status.

Option 1. Remuneration as a company director

In this case, the company must withhold Personal Income Tax (IRPF):

• 19% — if the company’s annual turnover does not exceed €100,000;
• 35% — if it exceeds €100,000.

The withheld IRPF is paid by the company to the Spanish Tax Agency on your behalf. This is not the final amount of tax due. When you file your annual Personal Income Tax Return, all income, withholdings, personal circumstances and applicable deductions are recalculated. As a result, part of the IRPF withheld may be refunded, or an additional amount may become payable.

For income classified as employment income, the approximate minimum income level below which the final tax liability may be very low or nil is around €14,500 per year. The exact calculation also depends on the taxpayer’s personal and family circumstances.

Important: the possibility of receiving remuneration specifically for your duties as a director must be checked against the SL’s articles of association. As a general rule, the position of director is considered unpaid unless the articles expressly state that it is remunerated and establish the corresponding remuneration system.

Option 2. Issuing invoices to your own SL for separate professional services

In this case, the income is treated as income from an independent economic activity. At the end of each quarter, as a general rule, an advance IRPF payment equal to 20% of the profit earned must be calculated and paid.

These quarterly 20% payments are also not the final tax. When the annual Personal Income Tax Return is filed, all advance payments made are taken into account, and part of the amount may be refunded in full or in part if the final tax liability is lower.

As an approximate guide:

• during the first 2 years of activity, the level of income at which the final IRPF may be very low or nil is around €10,000 per year;
• from the third year onwards, around €8,000 per year.

The exact amount depends on expenses, the personal and family allowance, other income, and applicable deductions.

If the autónomo issues an invoice to a Spanish company for services subject to VAT, 21% VAT must also be added to the service amount.

Important

The choice between receiving remuneration as a director and issuing invoices depends on the specific functions you perform in the company and on how the relationship between the autónomo and the SL is structured from a legal and tax perspective. Therefore, the specific case should be reviewed before choosing either option.