Income tax (IRPF) for freelancers
You will know what income tax you owe as self-employed, when, and how to reduce it legitimately.
This topic explains how income tax (IRPF) works when you are self-employed in Spain. It covers how your freelance profit is taxed, which method is used to calculate it, the quarterly payments, the withholding on your invoices, the expenses you can deduct, the annual return and the yearly tax…
Pick the article that fits your situation
How your freelance income is taxed (IRPF)
Explains how income tax (IRPF) works for a freelancer in Spain: what counts as taxable profit, how the tax rate is built, and how quarterly payments and withholdings are credited in the annual return. For new autonomos.
Simplified, normal or flat-rate (módulos) regime: which fits you?
Explains the three ways Spanish self-employed people taxed under income tax can have their profit calculated, which one applies to you by activity and turnover, and when you can or must switch. Written for new autónomos choosing or checking their regime.
Quarterly income tax instalments: who files and who is exempt
Explains which quarterly income tax form most self-employed people file, how the amount is worked out, and when professionals are exempt. It is for autónomos who pay income tax and need to file correctly, including in quarters with no income.
Putting income tax withholding (retención) on your invoices
Explains when a self-employed professional in Spain puts income tax withholding on an invoice, which rate to use, and when none applies. For freelancers and new professionals invoicing Spanish businesses.
Which business expenses you can deduct
Explains the three tests an expense must pass to be deductible as an autónomo, and which common costs are usually accepted or refused. It is for self-employed people who file under direct estimation, normal or simplified.
Home office, car and phone: how deductions really work
Explains how self-employed people in Spain can deduct home utilities, a car, and phone and internet costs, and how travel meals and lodging are treated. It is for freelancers (autónomos) who work from home or travel for work.
Filing your annual tax return (renta) with business income
How self-employed people report their activity profit in the yearly income tax return, and how to credit the quarterly payments and client withholdings you already made. For autonomos filing their first or next renta.
Other tax forms you may owe: rent, professionals and large clients
Explains three extra declarations a self-employed person in Spain may owe beyond the usual income tax and VAT returns: modelo 115 for rented premises, modelo 111 for paying staff or professionals, and modelo 347 for large dealings with one client or supplier.
About this topic
It is for anyone considering, planning or carrying out a move to Spain. After reading, you will know what income tax you owe as a freelancer, when you owe it, and how to reduce it legitimately.
VAT, notices and appeals from the tax office, tax residency rules and social security contribution amounts are covered elsewhere.
Start with "How your freelance income is taxed (IRPF)". It shows how taxable profit is worked out and how the quarterly payments and the annual return fit together. The other pages then go into each step.
Key rules
- Simplified allowance: In simplified direct estimation, a 5% allowance for hard-to-justify expenses applies, capped at 2,000 euros a year.
- Quarterly instalment: If you are in direct estimation, each quarterly instalment (modelo 130) is 20% of your cumulative net profit since 1 January, minus earlier instalments and withholdings already suffered.
- Invoice withholding: Professionals withhold 15% on invoices to businesses in Spain, or 7% in the year they start and the next two years if they had no professional activity the year before.
- Home utilities: Working from home, you can deduct 30% of the part of your utility bills matching the share of the home used for the activity.
- Quarterly deadlines: Quarterly forms are filed 1 to 20 April, 1 to 20 July and 1 to 20 October, and for the fourth quarter 1 to 30 January.
- Annual return: The annual renta campaign normally runs from early April to 30 June.
Income tax (IRPF) for freelancers: the whole process, step by step
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Choose your profit-calculation regime (read: Simplified, normal or flat-rate (módulos) regime: which fits you?): In December before the year you want the change, or within the filing period of your first quarterly payment in the year you start
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Set up withholding on your invoices (read: Putting income tax withholding (retención) on your invoices): From your first invoice to a business in Spain
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Keep invoices and books for deductible expenses (read: Which business expenses you can deduct, and Home office, car and phone: how deductions really work): All year, as you spend
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File the first-quarter instalment (read: Quarterly income tax instalments: who files and who is exempt): 1 to 20 April
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File the second-quarter instalment: 1 to 20 July
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File the third-quarter instalment: 1 to 20 October
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File the fourth-quarter instalment: 1 to 30 January
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File your annual renta, crediting quarterly payments and withholdings (read: Filing your annual tax return (renta) with business income): From early April to 30 June
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Check any extra forms triggered by rent, paying professionals or large clients (read: Other tax forms you may owe: rent, professionals and large clients): When the situation arises during the year
Documents you may need
Income and work
- A signed written communication to each client saying you meet the conditions — Putting income tax withholding (retención) on your invoices
- A power of attorney in favour of your gestor — Quarterly income tax instalments: who files and who is exempt
- Proof of the date you registered your professional activity in the activity tax — Putting income tax withholding (retención) on your invoices
Payments and receipts
- A full invoice — Which business expenses you can deduct
Other documents
- A way to identify yourself online — Quarterly income tax instalments: who files and who is exempt
- Your books — Which business expenses you can deduct
- Proof that an expense is linked to your activity — Which business expenses you can deduct
Income tax (IRPF) for freelancers: questions that cross several articles
Can I switch between simplified and normal estimation whenever I like?
No, you can only switch at set times: in December for the following year, or within the filing period of your first quarterly payment in the year you start. A renunciation lasts three years and then renews automatically unless you revoke it. Read Simplified, normal or flat-rate (módulos) regime: which fits you?
Which regime changes how my taxable profit is calculated?
Your regime decides how profit is worked out: simplified uses fixed depreciation tables and the 5% allowance for hard-to-justify expenses, capped at 2,000 euros, while normal allows provisions. Read Simplified, normal or flat-rate (módulos) regime: which fits you?, then Which business expenses you can deduct.
How do my quarterly payments and withholdings show up in the annual renta?
Both are credited against your yearly tax as payments on account, and the result is a refund or a balance to pay. Read Quarterly income tax instalments: who files and who is exempt and Filing your annual tax return (renta) with business income.
What tax rate will I end up paying on my profit?
Your rate depends on a state scale plus your region's scale, which together run from 19% to 47% on the default combined scale. Regions set their own scales, so check yours. Read How your freelance income is taxed (IRPF), then Filing your annual tax return (renta) with business income.
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What to read next
More in Self-employment and freelancing
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