Income tax (IRPF)
As a self-employed person, you don't pay income tax just once a year. We explain how it works and make sure you are taxed on what you really earn.
What it involves
Personal income tax (IRPF) is the tax on what you earn. As a self-employed person, you don't only pay it in your annual income tax return (declaración de la renta): during the year you pay part of it in advance, through payments on account or through the withholdings your clients apply on your invoices. At the end, in the annual return, the final calculation is made and you either have something to pay or get a refund.
Is this your case?
- You are a professional and don't know whether you have to apply withholding on your invoices.
- You had a lot to pay on your income tax return and don't understand why.
- You don't know whether you are taxed under direct assessment (estimación directa) or the module system (módulos), or which suits you.
- You have worked part of the year as an employee and part as self-employed.
How we help
We review your activity, your income and your expenses so that you are taxed on what you really earn. We calculate your payments on account during the year, tell you when to apply withholding on your invoices and prepare your income tax return taking your family situation into account. If you have income or assets outside Spain, we look at how they affect you. We explain everything to you before filing anything. We can help you in Spanish, Arabic, Tamazight, French and English, at our offices in Tenerife, Gran Canaria, Málaga and Barcelona or online, wherever you are in Spain.
Your IRPF payments go in your quarterly tax returns, and so you don't forget any expense, we help you with accounting.
Frequently asked questions
- What is the difference between withholding and instalment payments of IRPF?
- Withholding (retención) is deducted from your invoice by your client, who pays it to the Tax Agency. Instalment payments (pagos fraccionados) are made by you during the year, on account of your income tax. Depending on your activity and your clients, you will have one, the other or both.
- What expenses can I deduct as a self-employed person?
- In general, those related to your activity that you can support with an invoice, such as the rent for your premises, utilities or your self-employed contribution. Some expenses have special rules, so we review them one by one.
- If I have income or assets in my home country, do I have to declare them in Spain?
- If you are tax resident in Spain, in many cases yes, although there may be agreements to avoid paying twice. We look at it according to your situation and your country.
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We speak Spanish, Arabic, Tamazight (Berber), French and English.