Freelancer Tax in Spain: Autónomo VAT, IRPF & Invoicing (2026)

Spain has no exempt-dealer category — every freelancer must register as an autónomo before issuing their first invoice. Registration involves two steps:

• Hacienda (Agencia Tributaria) — file Modelo 036 or 037 declaring your business activity (epigrafe IAE code).
• Seguridad Social — register under RETA (Régimen Especial de Trabajadores Autónomos) to pay social security contributions.

New autónomos pay a reduced flat fee (tarifa plana) of €87/month for the first 12 months, increasing gradually. The standard quota is ~€294-€590/month based on income tier (from 2023 reform).

Spain charges IVA on most services and goods:

• 21% Standard — most professional services (design, consulting, development, marketing)
• 10% Reduced — restaurants, hospitality, passenger transport
• 4% Super-reduced — essential goods (bread, books, medicine)
• 0% (exempt) — exports outside the EU, B2B services to EU clients (reverse charge), medical services, education

B2C services to EU customers follow OSS rules — you charge the customer's country's VAT rate if over the €10,000 cross-border threshold.

When invoicing Spanish business clients (B2B), you must apply IRPF withholding on your invoice — the client deducts this amount and pays it directly to Hacienda on your behalf.

• 15% Standard — most autónomos
• 7% Reduced — first 3 calendar years as a new autónomo (the year of registration + 2 following years)
• 2% Construction — specific construction-sector activities

IRPF retention is not applied to:

• B2C invoices (private individuals)
• Foreign clients (EU or non-EU)
• Activities under the simplified module system

Your invoice should show: Base + IVA – IRPF retention = Net amount payable.

Spanish invoice requirements per Reglamento de Facturación:

• Word "FACTURA" clearly displayed
• Sequential invoice number (cannot reuse, cannot skip)
• Issue date and date of service (if different)
• Your name + NIF (Tax ID) + full address
• Client name + NIF (if Spanish) or VAT number (if EU B2B)
• Itemized services with quantity, unit price, total
• Subtotal (base imponible)
• IVA rate and amount, shown separately
• IRPF retention (if B2B), shown separately
• Net amount payable to you

Simplified invoices (factura simplificada) are allowed for amounts under €400 (or €3,000 for specific sectors), but most B2B work requires full invoices.

Autónomos file two quarterly returns:

Modelo 303 — IVA return

• Reports IVA collected from clients minus IVA paid on business expenses
• Net amount owed (or refunded) to Hacienda
• Due 1-20 of the month after each quarter

Modelo 130 — Income tax advance

• Pre-pays 20% of net profit (income minus deductible expenses) as advance income tax
• Due 1-20 of the month after each quarter
• Settled against actual tax owed in annual Modelo 100 (June following year)

Deadlines for both:

• Q1: April 1-20
• Q2: July 1-20
• Q3: October 1-20
• Q4: January 1-30 (note: Q4 ends Jan 30, not 20)

Autónomos can deduct legitimate business expenses from taxable income (Modelo 130 base) and reclaim input IVA on most purchases:

• Office / coworking — full deduction if dedicated business space
• Home office — 30% of utilities (electricity, water, internet) proportional to dedicated workspace
• Vehicle — 50% IVA + fuel for mixed-use vehicles; 100% for purely commercial vehicles
• Equipment & software — laptops, design tools, SaaS subscriptions
• Professional services — accountant, lawyer fees
• Social security contributions — quota mensual fully deductible
• Training & books — directly related to your activity

Keep every receipt. Hacienda audits autónomos selectively, and missing documentation invalidates the deduction.

Mistake 1: Forgetting the IRPF retention. B2B invoices in Spain MUST show IRPF withholding. The client deducts it and you receive the net amount. Forgetting it means you owe more income tax than collected.

Mistake 2: Not registering for OSS before EU B2C sales. If you sell to EU consumers (not businesses) and exceed €10,000/year cross-border, you must register for One-Stop-Shop and charge each country's VAT rate.

Mistake 3: Mixing personal and business bank accounts. While not strictly required, separating accounts massively simplifies bookkeeping and reduces audit risk.

Mistake 4: Missing quarterly deadlines. Late Modelo 303 or 130 triggers automatic penalties of 1-20% of the amount owed plus interest. Always file before the 20th.