Setting your freelance rate so you keep what you need

Terms used

• Autónomo — An autónomo is a self-employed person registered with the Seguridad Social and the tax office.
• Quota — The quota is the monthly social security payment an autónomo makes, based on net income.
• Seguridad Social — The Seguridad Social is Spain's social security system, which collects autónomo quotas.
• IRPF — IRPF is Spain's personal income tax.
• Agencia Tributaria — The Agencia Tributaria is Spain's national tax office.
• VAT — VAT (IVA in Spanish) is a sales tax added to invoices and passed on to the tax office.

Key rules

• Order of the sum: Start from the net income you want, add quota, income tax and costs, then divide by billable days.
• Billable days: Plan on 150 to 200 billable days a year, and fewer while you build a client base.
• Withholding: Withholding on invoices to Spanish businesses is not extra income; it is tax prepaid from your invoice.
• VAT: Add 21% VAT on top of your rate when your service is taxed and your client pays VAT.

Quota brackets, income tax scales and market rates change often, so check the current figures with the Seguridad Social, the Agencia Tributaria and recent freelancer surveys.

Start from what you want to keep

Work backwards. Your rate is the net income you want, plus the costs and taxes that come out before it reaches you. Do it in this order.

1. Write down your yearly net income. This is what you want in your pocket after quota and tax.
2. Add your yearly quota. As an autónomo you pay a monthly quota to the Seguridad Social. Since 2023 it depends on your net monthly income, using a table of about 15 brackets. Quotas rise with each bracket and the table is updated every year. Find your bracket in the current table with the Seguridad Social, then multiply the monthly quota by 12.
3. Add income tax. IRPF is progressive. It has a state part and a regional part, and together the bands run from the high teens up to the high forties per cent at the top. Most regions use the default regional scale, but several set their own. The Basque Country and Navarra have separate regimes. Check the current scale with the Agencia Tributaria and your regional tax authority. Apply it to your profit, not to your whole turnover.
4. Add business costs such as software, a workspace and training.

The total is the amount you must invoice in a year, before VAT.

Estimate your billable days

You cannot bill every working day. Weekends, public holidays, around 30 days of holiday, sick days, admin, sales, training and gaps between projects all take time. Plan on 150 to 200 billable days a year. Plan on fewer if you are new and still finding clients.

Divide the yearly amount you must invoice by your billable days. That is your daily rate. Divide by the hours you bill per day for an hourly rate. The calculator below does this sum for you.

Withholding: not extra money

Invoices for professional activities to Spanish businesses must show an income tax withholding of 15%, or 7% in the first three years of activity if you qualify. The 7% rate needs you to give the client a written statement that you meet the conditions. Check that your activity counts as professional.

The withholding does not raise your rate. The client keeps that part of your invoice and pays it to the tax office on your behalf. It counts toward your income tax. It matters for cash flow, because you receive less than the invoiced amount. It does not apply to invoices to private individuals or to clients abroad.

Add VAT on top

Most freelance services, such as design, IT, consulting, translation and writing, are charged 21% VAT on mainland Spain and the Balearics. Add it to your quote when your client pays VAT. It is not your income, because you pass it on to the tax office. Some services, such as health care by qualified professionals and authorised education, are exempt. The Canary Islands, Ceuta and Melilla use different taxes. If this affects you, ask the Agencia Tributaria.

Check against the market

Rates vary widely by field, experience, city and client. Spanish rates are usually lower than in northern Europe. Translators and copywriters tend to be at the low end, designers and web developers mid-range, and senior developers, data specialists and consultants at the top. Madrid and Barcelona usually pay more than other regions, and foreign clients pay more than local ones. No official statistics exist, so compare your rate with recent freelancer surveys for your field and city.

If your rate is far above the market, look at your costs, your billable days or what you can offer. If it is far below, you may not be keeping the income you want. Do not simply lower your price to match.

Before you quote

Use the timeline and checklist below to run the numbers. The quick answers cover VAT on quotes and how long it takes to break even.

Timeline and deadlines

• Write down the net income you want to keep each year: before you start

• Add your yearly quota, found in the current table with the Seguridad Social: after you set your net target

• Add income tax on top, using the current scale from the Agencia Tributaria and your region: after you add the quota

• Estimate your billable days: plan on 150 to 200 days a year, fewer if you are new and still finding clients: before you divide into a rate

• Divide the amount you need to earn by your billable days to get a daily rate: once you have both figures

• Add 21% VAT on top when you quote a client who pays VAT: when you send the quote

• Compare your daily rate with recent freelancer surveys for your field and city: before you send your first quote

Checklist

• Write down the yearly net income you want to keep after quota and tax.

• Check the current income tax scale with the Agencia Tributaria and your regional tax authority, and add the tax on your expected profit.

• Check whether your invoices to Spanish businesses carry the 15% withholding, or 7% if you qualify as a new professional, and plan your cash flow around it.

• Estimate your billable days, using 150 to 200 days a year as a starting range.

• Divide your required yearly income by your billable days to get a daily rate, then by your hours per day for an hourly rate.

• Add 21% VAT to the quote if your service is taxed and your client pays VAT.

• Compare your rate with recent freelancer surveys for your field, city and type of client.

Work out the day or hour rate you need

Work it out

What you enter

• Net income you want each month, after quota and income tax (EUR): Your own budget: what you need to take home each month.
• Days you can bill each month (days): Count working days, then remove holidays, admin, sales and sick time.
• Business costs each month (EUR): Your bank statements: software, coworking, insurance, gestor fees.
• Your monthly autónomo quota (EUR): Your Seguridad Social quota notice or your direct debit amount.
• Income tax share of your profit (%): Ask your gestor for your expected average income tax rate on yearly profit.

Figures used

• VAT on most freelance services: 21 % (as of 2026)
• Income tax withholding on invoices to Spanish businesses: 15 % (as of 2026)

Worked example (with Net income you want each month, after quota and income tax 2,000 EUR, Days you can bill each month 15 days, Business costs each month 300 EUR, Your monthly autónomo quota 300 EUR, Income tax share of your profit 25 %)

When the sum misleads

• VAT you charge is not yours: you pass it on to the tax agency, so it never counts as income.
• Withholding is not an extra cost: it is part of your income tax paid early, so you get it back against what you owe.
• If you invoice private individuals or clients abroad, no withholding is taken, so you receive the full invoice amount.
• In your first year your quota may be lower, so enter the quota you actually pay and redo the sum when it rises.
• Be careful with billable days: most freelancers bill far fewer days than they work.

Pricing and income quick answers

Is it fine to charge Spanish clients less than foreign clients?

Yes, it is legal and common to charge Spanish clients less than clients in northern Europe or the US, because local budgets are lower. Price on the value you deliver and the market of each client, not on your own cost of living. Many freelancers keep one rate card and give discounts to long-term Spanish clients.

Is hourly, daily or project pricing more common in Spain?

Project or fixed-fee pricing is the most common for creative, web and consulting work in Spain. Hourly or daily rates are normal for ongoing work and IT contracting, translation is often priced per word, and monthly retainers are also common.

Should I quote prices with or without VAT?

Yes, quote businesses a price without VAT, written as "+ IVA", but quote private individuals a final price with VAT included. Say clearly on every quote whether VAT is included, because an unclear quote may be read as including it.

How many months does it take a new freelancer to break even?

A service freelancer with low costs typically takes 6 to 12 months to break even. Businesses that need stock or premises can take up to 2 years. This varies strongly by sector, so plan a reserve to cover the gap.