Self-Employed Net Income Calculator
If you want to know how much profit (or loss) your business is reporting, you can calculate it using our net income calculator for self-employed workers.
-
Let's start!
Work-related expenses
Expenses caused by your personal situation
Do you work from home?
Your net income is:
How to use it?
Are you self-employed in Spain? If so, one of the most important things to keep in mind is how to calculate your net self-employed salary. Here we provide you with the information you need to make an approximate calculation of your net income, based on your gross salary, monthly expenses and social security contributions.
Knowing the different aspects and elements involved in the calculation can ensure that you get your desired returns.
Read on if you want to learn more!
Keep this in mind
This way you can get more out of our self-employed net income calculator and obtain a more accurate result.
Annual turnover:
Your turnover as a self-employed worker is the total amount of sales made during a given period. This figure represents your gross income and does not include taxes, social security contributions and other deductions applied afterwards.
You can calculate your annual turnover by multiplying the profit you make (or think you will make) each month from your customers by 12.
Your self-employed contribution fee:
A self-employed person pays contributions from the moment they starts their activity and registers with Social Security. Thus, the corresponding contribution is debited each month from tehir bank account.
This contribution must be subtracted from the gross salary along with any other expenses related to the activity, such as VAT and deductions such as Personal Income Tax (IRPF). Long-term benefits, such as retirement contributions, are also taken into account.
Detail your expenses
To find out exactly what you can deduct and what the implications of doing so could be
When calculating the net income of a self-employed worker in Spain, these main factors must be taken into account and filled out if they apply to your specific situation:
Work-related expenses:
There are numerous expenses associated with running your business such as taxes, fees and other costs such as: rent, materials or supplies needed to carry out the work, utility payments to keep the business running, the services of third-party professionals, capital equipment you have purchased, or advertising expenses.
Also, you should take into account what you have to spend on your employees, which includes their salaries, bonuses and any other related costs.
Your personal/family situation:
These deductions are subtracted from what we would have to pay in the IRPF and generally apply in the following cases:
In case of possessing any disability….
According to the Tax Agency, active workers with disabilities will be able to deduct €3,500 per year from their income from work. This deduction will be of €7,750 if the person accredits that they need help from third parties or has reduced mobility and if they prove a degree of disability of:
Between 33% and 65%: A deduction of €3,500 is applicable.
Equal or higher than 65%: A deduction of €7,750 is applicable.
If you have dependent descendants…
This applies when they are under 25 years of age or one of them has a disability. The applicable deductions are the following:
For the first child are €2,400, for the second €2,700, for the third €4,000€ and from four children onwards the deductible amount is €4,700.
If you have dependent ascendants…
The minimum deductions for ascendants that apply are the following:
Disabled or over 65 years of age: €1,150.
Over 75 years of age: €1,400.
But, be careful! These amounts usually vary according to the established rates by each Autonomous Community.
Expenses if you work from home:
Self-employed workers who have decided to establish their office in their home have more tax advantages, because they are entitled to deduct certain extra expenses. Let’s see which ones!
If you own a house, you can deduct this expense in your Personal Income Tax (IRPF) declaration, although you must have registered it as a property in the RETA (Special Regime for Self-Employed Workers). Deductible expenses include homeowner’s association fees (if it is a compulsory fee), mortgage or home insurance interest.
If where you live is a rented property, a proportional part of it can be deducted if you register it as your residence and at the same time as a place of work.
The purchase of equipment related to your economic activity (computer, supplies, furniture, etc.) is also deductible from your taxes only if they are duly justified by invoices.
Costs related to utilities such as internet, electricity, telephone, etc. are also deductible, but always in proportion to the amount you use for your work.
More information
These are facts to help you better understand how we calculate your self-employed net income
Once you have entered your annual turnover and our calculator has deducted all the work and personal expenses you specified, we simply apply the IRPF withholding percentage.
For this we will be guided by the brackets set by Hacienda for 2023:
| Bracket | Gross Salary | Percentage of payable personal income tax (IRPF) |
|---|---|---|
| First Bracket | From 0 up to €12,450 | 19% |
| Second Bracket | From €12,451 up to €20,2000 | 24% |
| Third Bracket | From €20,201 up to €35,200 | 30% |
| Fourth Bracket | From €35,201 up to €60,000 | 37% |
| Fifth Bracket | From €60,001 up to €300,000 | 45% |
| Sixth Bracket | More than €300,001 | 47% |
This calculation will obviously provide only an approximate number.
Even if the data you enter is 100% correct, your net income may not actually represent the exact amount. This is because there are many individual factors and changes in current regulations that can influence the final result.
Would you prefer to have a professional do it for you?
You can leave everything in the hands of an accounting and tax specialist, expert in self-employed matters in Spain.
Just click on the button and schedule a FREE 30-minute consultation.