FREELANCE GUIDE

START

Basic notion for self-employed in Spain

FREELANCE GUIDE

Non-deductible expenses

Deductible expenses

VIES / ROI

Tax Forms

IRPF (Income Tax)

Spanish VAT

Flat Rate (Social Security fees)

The basics

All the details when you press the different icons below.

Table of Contents

fORM 036

FORM 030

The Public Treasury is also called the Tax Agency. It is that part of the public administration that is responsible for obtaining the necessary financial resources to maintain the infrastructure of the State, which includes education, health, national defence and citizen security, infrastructures, and more. In the case of the self-employed workers, the Tax Agency is the entity that collects taxes quarterly and where you have to submit your Annual income statement once a year. To become a self-employed worker in Spain, you have to register in the Census of Liable Taxpayers through Form 030. Next, you have to register in the Census of Employers, Professionals and Withholders through Form 037 or 036.

Tax Agency

The Basics

New spanish Social Security contribution system

The Social Security of Spain is the central social protection system of the State. Its purpose is to guarantee specific and individualised social benefits, to face certain contingencies that can place the person (and those who depend on it) in a situation of need. You can learn more about the history and structure in this Wikipedia link: https://en.wikipedia.org/wiki/Social_security_in_Spain The self-employed worker in Spain has to register to RETA (Social Security) once he has registered to the Tax Agency using Form 036 or 037. Next, the self-employed has to pay monthly the Social Security fee named in Spanish “cuota de autonomo” which starts from €80/month (Flat Rate), if it is the first time you have registered as a self-employed worker. When you register with Social Security you must choose a contribution base. Based on this base, this is how you will contribute to your retirement.

Social Security

The Basics

The self-employed workers that register in RETA for the first time, or that were not registered the previous 2 years will be entitled to a reduction in the Social Security fees which will be established at 80 euros per month for the 12 months immediately following the date of registration. But what happens if you have already benefited from this reduction in a previous registration? Can you profit from the 80 euros flat rate again? The rule expressly considers this situation and shows that to be entitled to this reduction in the event of a resumption of the activity, the deregistration period in RETA must be 3 years. After that period, you should select your contribution base according to the 15 tranche system.

Social Security fee reduction for your first 12 months as self-employed in Spain

Flat Rate

New spanish Social Security contribution system

SPANISH VAT EXEMPT ACTIVITIES

Some operations are exempt from Spanish VAT such as: teaching in public or private authorised centres,private classes, assistance to individuals by medical and health professionals for the diagnosis, prevention and treatment of diseases, insurance operations, mediation services and intervention by public notaries in financial operations, leasing of houses.

Exempt activities

Deliveries of goods and supplies of services carried out in the territory of application of the tax (i.e., the Peninsula and Balearic Islands) by business people and professionals in the development of their economic activities are subject to the tax. As a general rule, the taxable person of these operations is the entrepreneur or professional. However, individuals, legal persons (companies) and entities with no legal personality (non-profit organisations, for example) are also considered taxable persons when they perform operations subject to the tax.

General Concept

Spanish VAT

SPANISH IRPF (INCOME TAX)

One of the sections of this tax refers to economic activities. The incomes of these activities are the ones that, derived from personal labour and the joint capital, or only one of these factors, imply on the taxpayer the management of production means and/ or human resources, to intervene in the production or distribution of goods or services. However, if in your case the activity is the rental of houses, you need to have an exclusive location and one employee fulltime for this to be an economic activity. To determine the income of economic activity, we can use several types of estimates.

General Concept

Spanish IRPF

Taxes self-employed have to pay in spain

The tax forms (“modelos tributarios” in Spanish) are the forms we use to submit the different taxes. The forms self-employed workers use the most are:- Form 303: VAT form (“modelo IVA”) is submitted quarterly. - Form 130: The personal income tax return is submitted quarterly (“modelo IRPF”). - Form 111: Form for withholdings of workers and professionals. - Form 115: Form for rentals withholdings. - Form 349: Intra-community operations form. - Form 390: Annual summary VAT form. - Form 180: Annual summary form for rental withholdings. - Form 190: Annual summary form for the withholdings to professionals and workers. - Form 347: It is an annual statement of operations with third parties. - Form 100 (Renta): Annual personal income tax return. Not in all cases you will need to submit all of these forms. See the details for each one by clicking the button below.

Tax Forms

more on vies/roi registration

Purchase and sale operations of goods or services to individuals or companies of the European Union (EU) states are called acquisitions and intra-community deliveries. Purchases and sales of goods and services between EU companies are subject to a particular system of VAT taxation. The acronym ROI means Register of intra-community operators and is where you should register your registration if you perform this type of operations.

What is ROI?

VIES / ROI Registration

more on deductible expenses

For an expense to be fiscally deductible, it must meet the following conditions: 1. That it is a real operation. 2. That has been made for the attainment of income. 3. That is duly registered in the expense book. 4. That it was charged in the year in which it occurred. 5. That is duly justified, as a priority by the invoice delivered by the entrepreneur or professional who has made the corresponding operation. You can find the whole list of deductible expenses and the details clicking on the button below.

What is a deductible expense in Spain?

Deductible expenses

more on NON-deductible expenses

As a general rule, the Tax Agency (AEAT) establishes three indispensable requirements for costs to be declarable: - The charges must be linked to the economic activity that you develop as a self-employed worker. - All expenses must be justified with invoices, sometimes very specific receipts are accepted. - They must be registered in the accounts, in the book of expenses and investments that a self-employed worker must have. - In general, the expenses are deducted in two statements, on the one hand in the annual income statement (IRPF), and on the other, quarterly in the VAT form 303. Let’s see each of them separately. See the list of non-deductible expenses in the VAT and in the IRPF by clicking the button below.

Declarable costs

Non-deductible expenses

Contact us here ->

Subscribe to our newsletter:

Contact

https://www.selfemployedspain.com/blog/

Follow our social networks for more news and tutorials on self-employed life in Spain: