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Self-Employed Income: Growth vs. Tax Burden in 2025

by Priya Shah – Business Editor

Self-Employment Rises in 2025, But Tax Burden Remains a Major Concern


By World Today News Staff

A recent study reveals a positive trend in self-employment income for 2025, with 64% of freelancers reporting an increase. However, a important 80% continue to struggle under the weight of high taxes, according to data from the Economic Observatory of the Autonomous Labor, developed by UPTA based on a survey of 2,000 self-employed individuals.

The Union of Professionals and Autonomous Workers’ investigation indicates that 20% of the self-employed have experienced no change in income, a common occurrence within the food sector where sales have remained relatively stable. Conversely, 16% have seen a decrease in turnover compared to the first half of the previous year, with the textile industry being particularly affected.

Despite these sectoral variations, the overall outlook is optimistic. A considerable 70% of respondents anticipate closing the year with higher results than 2024. However,20% predict a decline,and 10% expect no significant changes.

The survey highlights that the primary concern for 80% of the self-employed is the high fiscal burden. This is especially problematic for individual freelancers who face substantial taxes without enjoying the same benefits as traditional employees. Furthermore, 10% criticize the lack of adequate social protection, noting that autonomous medical leave provides only around 600 euros per month, while fixed expenses like rent and utilities remain constant.

An additional 5% believe that social security contributions are disproportionately high and unfair, and another 5% cite political instability as a significant economic risk. Eduardo Abad, president of UPTA, stated, “A extensive fiscal reform for this group and improved social protection, equalizing the rights of the self-employed with those of employees, is essential and unavoidable. we will continue to work diligently to achieve this.”

Understanding the Rise of Self-Employment

The growth of self-employment reflects broader economic trends, including the increasing demand for specialized skills and the desire for greater flexibility in work arrangements. Historically, self-employment rates have fluctuated with economic cycles, but the recent surge suggests a more permanent shift in the labor market. Factors such as technological advancements and the gig economy have also contributed to this trend.

the tax burden on the self-employed has long been a contentious issue,with advocates arguing for fairer treatment compared to traditional employees.Current systems frequently enough require self-employed individuals to cover both employer and employee contributions, leading to a higher overall tax liability.

Frequently Asked Questions About Self-Employment and Taxes

  1. What percentage of self-employed workers saw an increase in income in 2025?

    According to the Economic Observatory of the Autonomous Labor, 64% of self-employed workers reported an increase in their income in 2025.

  2. What is the biggest concern for the majority of self-employed individuals?

    The survey revealed that 80% of the self-employed consider the high fiscal burden to be their main problem.

  3. How does the amount of medical leave pay compare for self-employed individuals versus employees?

    Self-employed individuals on medical leave typically receive around 600 euros per month, while employees generally receive more substantial benefits.

  4. What sectors experienced a decline in turnover in the first half of 2025?

    The textile sector was among the most affected, with 16% of self-employed individuals reporting a reduction in turnover.

  5. What is UPTA advocating for regarding self-employment?

    UPTA is advocating for a comprehensive fiscal reform and improved social protection for the self-employed, aiming to equalize

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