UK firms are preparing to fork out hundreds of thousands of euros in extra costs for their Spanish practices, after legislation came into force this month that stripped lawyers of their self-employed status.

The controversial reforms, which went live on 1 February, saw every Spanish lawyer become an employee of their law firm, replacing the country’s traditional self-employment model. Historically, lawyers technically worked as independents and invoiced a law firm each month. Each lawyer was then responsible for paying their taxes.