How your freelance income is taxed (IRPF)

Terms used

• IRPF — IRPF is Spain's personal income tax, charged on your net profit as a freelancer.
• Renta — The renta is the annual income tax return, where your yearly IRPF is settled.
• Modelo 130 — Modelo 130 is the quarterly IRPF prepayment form for autonomos in direct estimation.
• Modelo 131 — Modelo 131 is the quarterly IRPF prepayment form for autonomos taxed under modules.
• Pagos a cuenta — Pagos a cuenta are payments on account: withholdings and quarterly prepayments credited against your annual IRPF.

Key rules

• Taxable base: You pay IRPF on net activity profit, which is income minus deductible expenses, not on turnover.
• Prepayments: Withholdings and quarterly payments are credited in the renta, so they are not extra tax.
• Foreign clients: Invoices to clients outside Spain carry no IRPF withholding, but you still declare the income.
• Rate: Your rate is a state part plus a regional part, so it depends on where you live.

What you are taxed on

IRPF is charged on your net activity profit, not on what you invoice. Net activity profit is your income minus your deductible expenses. Whatever you prepay during the year (withholdings and quarterly payments) is credited against the annual tax you settle in the renta.

Which expenses count

An expense is deductible when it is linked to your activity, recorded in your books and backed by an invoice. Typical items are supplies, staff costs, your Social Security contributions, rent, services you buy and depreciation of equipment.

Your method changes the detail:

• Normal direct estimation lets you deduct provisions and depreciation under the company-tax approach.
• Simplified direct estimation uses fixed depreciation tables. It replaces provisions and hard-to-justify expenses with a flat allowance of 5%, capped at 2,000 euros a year.

How the rate works

The rate is a state part plus a regional part, and the two are added together. The default state scale is:

If your region sets no scale of its own, the default regional scale applies. Combined, that gives 19%, 24%, 30%, 37%, 45% and 47%. Most regions set their own scales, so your combined rate depends on where you live. The Basque Country and Navarra have their own tax systems, so ask their tax offices how they apply to you. Regions change scales often, so check your region's current scale before you budget.

Each rate applies only to the slice of income in its bracket, not to your whole profit.

Withholdings on your invoices

When you invoice a business based in Spain, the client usually withholds IRPF from your invoice and pays it to the tax office for you. Invoices to clients outside Spain, inside or outside the EU, carry no IRPF withholding. This does not apply if the client has a permanent establishment in Spain. Services to EU businesses are generally not charged Spanish VAT either, so the invoice states the exemption. You still declare that income in your quarterly and annual IRPF.

Quarterly payments

During the year you prepay tax with modelo 130 or modelo 131 each quarter, based on your profit so far. These are advances, not extra tax. Keep a list of every withholding and every quarterly payment, because you need the totals for the annual return.

The annual return

In the renta, enter your net activity profit in the economic activities section. Enter your withholdings and quarterly payments as payments on account (pagos a cuenta). They are credited against the tax due. The result is one of two things:

• A refund, if you prepaid more than you owed.
• A balance to pay, if you prepaid less.

Use the calculator and checklist below to estimate your own figures.

Checklist

Before you move on

• Work out your net activity profit: your income minus your deductible expenses. This is the figure IRPF (Spanish income tax) is charged on.

• If you are in direct simplified estimation, include the 5% allowance for hard-to-justify expenses, capped at 2,000 euros a year, when you calculate your profit.

• Find your region's income tax scale, because the final rate is a state part plus a regional part and regions set their own.

• Keep a list of the withholdings clients took from your invoices and of every modelo 130 or 131 quarterly payment you made.

• Enter your net activity profit in the economic activities section of the renta, the annual income tax return.

• Check the result of the renta: a refund if you prepaid more than you owed, or a balance to pay if you prepaid less.

Estimate your income tax and take-home pay

Work it out

What you enter

• Yearly revenue, before VAT (EUR): Your issued invoices book or accounting software
• Yearly deductible expenses, not counting your Social Security quota (EUR): Your received invoices book or accounting software
• Social Security quota (RETA) you pay in the year (EUR): Your monthly Social Security payment receipts, multiplied by 12
• Income tax already withheld on your invoices (EUR): The withholding line on your invoices, or the annual summary from your clients

Figures used

• Allowance for hard-to-justify expenses (simplified direct estimation): 0.05 ratio (as of 2025)
• Cap on that allowance: 2,000 EUR (as of 2025)
• Quarterly instalment percentage: 0.2 ratio (as of 2025)
• Top of first bracket: 12,450 EUR (as of 2025)
• Top of second bracket: 20,200 EUR (as of 2025)
• Top of third bracket: 35,200 EUR (as of 2025)
• Top of fourth bracket: 60,000 EUR (as of 2025)
• Top of fifth bracket: 300,000 EUR (as of 2025)
• Combined rate, first bracket: 0.19 ratio (as of 2025)
• Combined rate, second bracket: 0.24 ratio (as of 2025)
• Combined rate, third bracket: 0.3 ratio (as of 2025)
• Combined rate, fourth bracket: 0.37 ratio (as of 2025)
• Combined rate, fifth bracket: 0.45 ratio (as of 2025)
• Combined rate, top bracket: 0.47 ratio (as of 2025)

Worked example (with Yearly revenue, before VAT 40,000 EUR, Yearly deductible expenses, not counting your Social Security quota 8,000 EUR, Social Security quota (RETA) you pay in the year 3,500 EUR, Income tax already withheld on your invoices 2,000 EUR)

When the sum misleads

• The estimate ignores your personal and family allowances and any other income, so your real tax may be lower or higher.
• If you are exempt from quarterly instalments because of withholding on your invoices, ignore the instalments line; your balance is then tax minus withholding.
• If you are in normal estimation or modules, the allowance and net profit work differently, so use this only as a rough guide.
• If your profit is zero or negative, the result is zero tax.

Quick answers on autonomo income tax (IRPF) payments and deductions

Do I add IRPF withholding to invoices for foreign clients?

No, invoices to clients outside Spain carry no IRPF withholding, whether the client is in the EU or elsewhere. The withholding duty only covers payers resident in Spain or with a permanent establishment there. You still declare that income in your quarterly and annual returns, and EU business clients usually get an invoice without Spanish VAT.

Do I still file modelo 130 in a quarter with no income?

Yes, you still file modelo 130 for a quarter with no income or a loss, unless you are exempt from the form. The return is filed with no payment due. Cumulative counting over the year evens out later quarters, so a loss is not refunded.

Can I deduct my own Social Security quota from my profit?

Yes, your own RETA quota is a deductible expense when you are in direct estimation. Contributions you pay for employees are deductible too, and so are those for a spouse or child who works in the business if you can prove it. The 5% hard-to-justify allowance is a separate deduction.

Can I deduct meals with clients or coffee-shop work?

Yes, meals with clients are deductible if they clearly relate to your activity, you have an invoice in your name, you record them in your books and the amounts are reasonable. Paying by card helps prove them. Your own meals in your town and general coffee-shop work usually are not accepted, as they look personal.