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Information on VAT and Income Tax for Self-Employed in Spain
Thread poster: Adriana Nesheva
Adriana Nesheva
Adriana Nesheva  Identity Verified
United Arab Emirates
Local time: 15:59
Member (2020)
English to Bulgarian
+ ...
Apr 8

I am planning to relocate to Spain and register as self-employed. I was reading a lot about the taxes that need to be paid and I am a bit confused. Can someone let me know how much is VAT and how much is income tax? From what I read, I understand it is approximately 21-23% each. Could you please give me an idea of what the taxes would be if you earn let's say 3000 EUR per month?

Thanks!
Adriana
 
Monica RW
Monica RW
Local time: 13:59
Member (2015)
English to Polish
+ ...
Taxes in Spain Apr 8

Hello, VAT is 21% for translations, but only for Spanish companies (if you are registered in Spain and issue invoices to your customers in Spain). Invoices for companies from any other country (not Spain) - 0% of VAT.

The income tax is called IRPF and here you are its rates:
"Since IRPF is a progressive tax, the tax rate (the percentage applied to the net tax basis to calculate the amount of tax payable) it is separated into bands: Up to € 12,450, the tax rate is 19%. From ... See more
Hello, VAT is 21% for translations, but only for Spanish companies (if you are registered in Spain and issue invoices to your customers in Spain). Invoices for companies from any other country (not Spain) - 0% of VAT.

The income tax is called IRPF and here you are its rates:
"Since IRPF is a progressive tax, the tax rate (the percentage applied to the net tax basis to calculate the amount of tax payable) it is separated into bands: Up to € 12,450, the tax rate is 19%. From €12,450 to €20,200, the tax rate is 24%. From €20,200 to €35,200, the tax rate is 30%."

And you will also have to pay obligatory social insurance (no matter whether you earn something or not in a given month).
"Freelancers will need to pay social security contributions ranging between €230 and €500, depending on which bracket their net income corresponds to."

Hope it helps!
Good luck
Monika ▲ Collapse


Marijke Singer
 
Adriana Nesheva
Adriana Nesheva  Identity Verified
United Arab Emirates
Local time: 15:59
Member (2020)
English to Bulgarian
+ ...
TOPIC STARTER
Information on VAT and Income Tax for Self-Employed in Spain Apr 8

Thanks a lot Monica!

Monica RW wrote:

Hello, VAT is 21% for translations, but only for Spanish companies (if you are registered in Spain and issue invoices to your customers in Spain). Invoices for companies from any other country (not Spain) - 0% of VAT.

The income tax is called IRPF and here you are its rates:
"Since IRPF is a progressive tax, the tax rate (the percentage applied to the net tax basis to calculate the amount of tax payable) it is separated into bands: Up to € 12,450, the tax rate is 19%. From €12,450 to €20,200, the tax rate is 24%. From €20,200 to €35,200, the tax rate is 30%."

And you will also have to pay obligatory social insurance (no matter whether you earn something or not in a given month).
"Freelancers will need to pay social security contributions ranging between €230 and €500, depending on which bracket their net income corresponds to."

Hope it helps!
Good luck
Monika
 


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Information on VAT and Income Tax for Self-Employed in Spain







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