First year
Freelancer wins
As a freelancer
Income
€50,000
Costs and taxes
€19,015
Net profit
Best€30,984
As a company
Income
€50,000
Costs and taxes
€21,174
Net profit
€28,825
Tax comparison
Freelancer or company calculator
Compare the approximate net profit of operating as a sole freelancer or through a company. Adjust income, expenses, salary and current status to see the first year, second year and stable scenario.
Results
Each block compares income, costs and taxes, and estimated net profit for freelancer and company.
Difference: €2,159
Second year
Freelancer wins
As a freelancer
Income
€50,000
Costs and taxes
€22,199
Net profit
Best€27,800
As a company
Income
€50,000
Costs and taxes
€23,312
Net profit
€26,687
From the third year
Freelancer wins
As a freelancer
Income
€50,000
Costs and taxes
€22,199
Net profit
Best€27,800
As a company
Income
€50,000
Costs and taxes
€24,854
Net profit
€25,145
Indicative result. It does not replace a personalized tax review: IAE heading, VAT, income tax, discounts, payroll, dividends and company obligations can change the real result.
Revenue and profit
With low or medium profit, freelancing is usually simpler. With high profit, an SL can optimize part of the return through salary and dividends.
Activity risk
A company limits personal liability in many cases. If your activity has contractual or debt risk, do not look only at taxes.
Admin and fixed costs
A company usually has more incorporation, accounting, books and company compliance costs. The tax saving must offset that load.