The real estate investor, owner of 16 properties, claims that self-employed individuals earning between 1,000 and 1,500 euros monthly bear an unsustainable burden of VAT, income tax, contributions, and advisory expenses.
The real estate investor Pascual Ariño has highlighted the tax situation of Spanish self-employed workers with modest incomes. During his appearance on the programme 'laSexta Xplica' in October 2025, Ariño, who describes himself as the owner of 16 properties, denounced that those earning between 1,000 and 1,500 euros per month face a combination of VAT, income tax, social security contributions, and advisory fees that leaves very slim margins.
As he explained, he conducted a survey among his followers before going to the studio, and all the responses agreed that taxpayers pay too much and that the collected money is not allocated properly. Ariño linked this tax pressure to the growth of the underground economy and the emigration of young talent from Spain.
VAT and income tax are not applied to gross profit
Ariño's statements have reopened the debate on the real tax burden faced by self-employed workers. However, the functioning of these taxes requires some nuances. The general VAT rate is 21%, but this percentage is not directly deducted from the profit obtained by the professional. Under the general regime, the self-employed person passes the tax onto their clients and subsequently pays the difference between the VAT collected and the deductible VAT incurred. There are reduced rates of 10% and 4%, as well as exempt activities.
Regarding income tax, it is also not necessarily calculated on the entire turnover. In direct estimation, the net income is obtained by subtracting d deductible expenses and amortisations from the income. The fractional payments for business and professional activities are generally calculated by applying 20% to the accumulated net income.
Ariño also mentioned that he moved to Andorra for tax reasons and compared the Andorran healthcare system with the Spanish one. He stated that a visit to his child's paediatrician cost him seven euros. The Andorran Social Security Fund indicates that, within the preferred route, certain consultations receive a reimbursement of 75% of their fees.
Self-employed contributions in 2026 depend on net income
The contributions of self-employed workers in 2026 continue to be organised by brackets of net income, not by gross turnover. Those earning between 1,166.70 and 1,300 euros monthly have a minimum base of 950.98 euros. For the bracket above 1,300 euros and up to 1,500 euros, the minimum base is 960.78 euros.
The worker can choose a base situated between the limits assigned to their bracket. The final contribution also depends on the applicable contribution rates, available bonuses, and the particular situation of each professional. For this reason, two self-employed individuals with the same turnover may end up paying different amounts.
For the average self-employed worker earning 1,500 euros monthly, the contribution may be around 300 euros, to which income tax and VAT must be added. However, deductions and expenses can significantly reduce the taxable base. The key is to maintain orderly accounting and know the available bonuses, such as the flat rate for new self-employed workers or reductions for multiple activities.
The debate on tax pressure is not new, but Ariño's intervention has once again brought to the forefront the need to review the system to prevent self-employed individuals with modest incomes from being overwhelmed by taxes. Meanwhile, many professionals opt for the underground economy or move their residence to countries with lower tax burdens, such as Andorra.
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