In Spain, invoices issued by self-employed individuals (autónomos) for professional services are usually subject to IRPF withholding when the client is required to withhold tax. The withholding is calculated on the taxable base (excluding VAT). The client pays this amount to the tax authorities (Hacienda) on behalf of the self-employed person. The withholding is treated as an advance payment towards the self-employed person’s income tax.
Amount payable = taxable base + VAT − IRPF withholding. VAT and IRPF withholding are calculated separately. Each amount is rounded to two decimal places. For standard professional invoices, both are calculated on the amount before VAT.
Some withholding rates:
- 15% general rate for professional activities
- 7% for new professionals in the year the activity begins and the following two years (if the requirements are met)
- 19% for the rental of urban properties, when withholding applies
- 24% for income derived from the commercial exploitation of image rights
- 2% for agricultural, livestock and forestry activities in general
- 1% for pig fattening and poultry farming, as well as for certain business activities under the objective assessment scheme (módulos)
Other withholding rates and exceptions may apply.
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines.