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December 14, 2022

How much is the income tax for Freelancers in Spain?

Income tax for Freelancers in Spain

In Spain, freelancers are required to pay income tax on their earnings just like any other individual who earns an income. Self-employed professionals pay this Impuesto sobre la Renta de las Personas Físicas (IRPF) (personal income tax) at the same rate as anyone else in Spain. 

The amount of tax that a freelancer is required to pay will depend on several factors, including their income level and any deductions or exemptions that they are eligible for.

The rate that autónomos pay is charged at a progressive rate. It varies between 19 and 47%, but it doesn’t just matter how much you earn: it also differs in every region.

In this article, we’re diving into everything you need to know about the income tax and other taxes freelancers pay in Spain. Read on to prevent any troubles and know what your budget should look like!

Who should I go to make my Tax Declaration in Spain?

In Spain you pay taxes to the tax agency: La Agencia Tributaria, which is also referred to as Hacienda. 

You are personally responsible for submitting your tax obligations to Hacienda at the dates that have been set. 

If you are a freelancer in Spain, you can file your tax return either electronically or by paper. To file your tax return electronically, you will need to create an electronic signature (known as a "firma electrónica") and register for electronic filing with the Spanish Tax Agency. Once you have done this, you can use the agency's website to file your tax return online.

If you prefer to file your tax return by paper, you can download the appropriate tax return form from the Spanish Tax Agency's website and complete it manually. Once you have completed the form, you can mail it to the agency's offices along with any supporting documentation, such as receipts for expenses or proof of income.

It's important to note that the deadline for filing your tax return in Spain is typically April 30 of the year following the tax year in question. For example, if you are filing a tax return for the 2020 tax year, the deadline for filing would be April 30, 2021. It's always a good idea to file your tax return as early as possible to avoid any potential penalties for late filing.

 

What taxes does a freelancer pay in Spain?

As a freelancer in Spain, you will be required to pay several different types of taxes, including income tax, value-added tax (VAT), and social security contributions.

  • Income tax: As a freelancer, you will be required to pay income tax on your earnings. The amount of tax you owe will depend on your income level and personal circumstances.
  • Value-added tax (VAT): As a freelancer, you will also be required to charge and collect VAT on the goods or services that you provide to your customers. The current VAT rate in Spain is 21%.
  • Social security contributions: As a freelancer, you will also be required to make contributions to Spain's social security system. These contributions are used to fund benefits such as healthcare and unemployment insurance. The amount of social security contributions you owe will depend on your income level and other factors.

How much tax does a freelancer pay in Spain?

In general, the income tax rate for individuals in Spain ranges from 19% to 45%, depending on the individual's income level and personal circumstances. The VAT rate in Spain is currently 21%, and the rate for social security contributions can vary depending on the specific type of work that you do as a freelancer. From 2023, the social security contributions will also be income-dependent. You can check how much you’ll be paying for social security in this article.

These are the different IRPF costs depending on how much you earn every year: 

  • If you earned € 0 to €12,450 you’ll have to pay 19% 
  • If you earned €12,450 to €20,200 you’ll have to pay 24% 
  • If you earned €20,200 a €35,200 you’ll have to pay 30%
  • If you earned €35,200 a €60,000 you’ll have to pay 37%
  • If you earned €60,000 a €300,000 you’ll have to pay 45%
  • If you earned €300,000 or more you’ll have to pay 47%

How to declare taxes as a freelancer in Spain?

Most freelancers let their accountant file their taxes. The Spanish system has the benefit of having easily recognizable numbers for tax documents, but freelancers have to declare their income every three months, making it quite a time-consuming activity – especially if you’re not into numbers.

Here are the forms you need:

  • Modelo 130 (quarterly form) for your income declaration (unless 70% of your clients are professionals or companies that make a withholding tax on the fees paid to you. In that case, this quarterly form isn’t necessary.
  • Modelo 100 (yearly form) for la Declaración de la Renta, which basically summarizes all your 130’s.
  • Modelo 303 (quarterly form) for VAT declarations
  • Modelo 390 (yearly form) for VAT declarations, summarizing the year of 303’s.

Just getting started? Register with Modelo 30 and present this at your local tax office. 

  • If you aren’t registered, you’ll need to fill out Form 30 (Modelo 30) and present it to your local tax office.

How to pay less taxes as a freelancer?

It’s all about deducting everything you legally can, to lower your taxable income. This means claiming every expense you can that is related to your business activity, but also checking which other deductibles you’re eligible for. For autonomos in Spain this can be costs of health insurance for instance, or your social security contributions. We wrote an extensive blog about expense management, with a list of deductions to be aware of. Make sure to check it out before your next tax deadline!

Easily do your taxes in Spain

Don’t want to deal with all those forms and formalities? Check out Corgee: in our app, you can keep all your sent invoices, your receipts and info on your social security payments. You can share this in a few clicks with your accountant, and let them do the rest!

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