If you’re self-employed in Spain or considering becoming one, it’s essential to understand how your tax obligations work. In this article, we explain in a simple and up-to-date way which taxes a freelancer must pay, which forms to submit, and the main legal and fiscal responsibilities involved.
Legal and Tax Obligations for Self-Employed in Spain
According to the Spanish Self-Employment Statute (Estatuto del Trabajo Autónomo), a freelancer is any individual who carries out an economic activity on their own, regularly, and independently, without being under the instructions of an employer or company.
These are the main tax and legal obligations for Self-Employed in Spain:
- Register with Social Security (RETA): This is the first step. You can do it online or in person. It gives you access to benefits like sick leave or retirement.
- Register with the Spanish Tax Agency (AEAT): This is done using forms 036 or 037, where you declare your activity, tax address, and fiscal obligations.
- Monthly self-employment contribution: This is calculated based on your actual income, according to the current tier system.
- Keep proper accounting records: You’re required to keep records of issued and received invoices, as well as investment assets.
- File periodic taxes: VAT, personal income tax, informative forms, and others depending on your activity.
Which Taxes Must a Self-Employed Pay?
1. IRPF (Personal Income Tax)
This tax is applied to the net income generated by the self-Employed. There are different estimation methods to calculate the taxable base:
- Direct estimation (normal or simplified) → Form 130
- Objective estimation (modules) → Form 131
If you’re on direct estimation, you must pay 20% of your quarterly profits (revenues – deductible expenses). This is adjusted in the annual income tax return (Form 100).
What if you don’t want to file Form 130?
You may apply IRPF withholding directly on your invoices if at least 70% of your income comes from Spanish companies or self-employed. In that case, you can apply for a 7% retention (if you’re a new self-employed) or 15%, and you’re exempt from filing Form 130.
2. VAT (Value-Added Tax)
VAT applies to most economic activities. Self-Employed act as intermediaries between the Tax Office and the final consumer. You must declare and pay this tax quarterly using Form 303.
At the end of the year, you also submit an annual VAT summary using Form 390.
Applicable VAT rates in Spain:
- General: 21%
- Reduced: 10%
- Super-reduced: 4%
Exceptions: Not all activities are subject to VAT (some, like educational or healthcare services, are exempt). VAT is also not applied to invoices issued to EU companies with a valid intra-community VAT number (Form 349), or to countries outside the EU.
Mandatory Tax Forms: Deadlines and Overview
Here’s a summary of the main forms that self-Employed must file, both quarterly and annually:
Quarterly Forms
- Form 130: IRPF for direct estimation → January, April, July, October
- Form 131: IRPF for modules → same deadlines
- Form 303: VAT declaration → quarterly
- Form 111: Withholdings on salaries or professional invoices
- Form 115: Withholdings on business premises rent
- Form 349: Intra-community operations
Annual Forms
- Form 100: Annual Income Tax return → April to June
- Form 390: Annual VAT summary → January
- Forms 180 and 190: Annual summary of withholdings → January
- Form 347: Transactions over €3,005.60 with a third party → February
How Much Does a Self-Employed Really Pay in Taxes?
IRPF is a progressive tax, meaning the more you earn, the more you pay. For example, if your annual taxable income (revenue – deductible expenses) is €50,000, the calculation would be:
| Tax Bracket | Rate | Amount |
| Up to €12,450 | 19% | €2,365.50 |
| €12,451–€20,200 | 24% | €1,860 |
| €20,201–€35,200 | 30% | €4,500 |
| €35,201–€50,000 | 37% | €5,476 |
| Total IRPF | €14,201.50 |
If you’ve already applied IRPF withholdings on your invoices, you’ll only pay the difference when submitting your annual tax return.
Other Key Aspects of Personal Income Tax
IRPF is divided into two taxable bases:
- General base: Income from work or professional activity.
- Savings base: Includes interest earned from bank deposits or investment accounts and is taxed at 19% for the first €6,000.
Tips for Managing Your Taxes as a Self-Employed
- Use invoicing and accounting tools: Automate tasks, avoid errors, and save time.
- Hire a professional tax advisor: A fiscal expert can help you meet all obligations and maximize deductions.
- Keep track of deductible expenses: Home utilities (if you work from home), training, insurance, Social Security contributions, or pension plans can help reduce your tax burden.
Need Help with Your Self-Employed Taxes?
At Entre Trámites, we help you stay on top of your accounting, submit taxes correctly and make the most of all available deductions. We also offer a free consultation to answer your questions.
Contact us today and simplify your self-employed life with expert support.
