Deductible expenses for freelancers in Spain

What is a deductible expense? 

They are those linked to the performance of a professional or business activity that can be deducted for tax purposes, that is, subtract from your income to consider what your benefits are and to be able to calculate how many taxes you should pay. An expense is deductible when it is necessary to carry out the activity and can only be used to carry out this activity. 

So if you're wondering if it's necessary and exclusive, it probably isn't. For example, for a lawyer it can be very important to have a good appearance, well, in the case of the purchase of a suit it is not deductible since although I probably did not use it outside of work, it cannot be considered exclusive to carry out your activity. The Tax Agency is very strict when accepting the deduction of an expense, so the self-employed must prove as best as possible that the expense is necessary for the activity.

In addition to being related to economic activity, to be deductible they must be correctly justified through an invoice and recorded in the accounting.   

The deduction can be applied to both personal income tax and VAT.

Main VAT deductible expenses:

  • Exploitation consumption.
  • Salaries and salaries of employees.
  • Leases and royalties.
  • Freelance Professional Services and Other Outside Services.
  • Certain taxes such as the waste collection fee.
  • Financial expenses.
  • Investment property.

In addition, it should be clarified that not all input VAT from purchases is deductible.

Main deductible expenses for personal income tax:

  • Exploitation consumption. Goods, raw materials ...
  • Wages and salaries.
  • Social Security in charge of the company. 
  • Other personnel expenses. Includes training expenses, compensation, accident insurance, gifts to workers, pension or social security plans.
  • Leases and royalties.
  • Reparations and conservation. Only related to repair and conservation of existing material.
  • Independent professional services such as lawyers, notaries, consultants ...
  • Other outside services. It refers to the contracting of other external services that are not included in the previous category: banking services, transport, advertising ...
  • Tax deductible taxes. It includes the IBI or the Economic Activities Tax (IAE).
  • Financial expenses. 
  • Amortizations and provisions.
  • Incentives for patronage, such as collaboration in activities of general interest.
  • Losses due to impairment of equity items.
  • Health insurance.
  • Losses due to bad debts.
  • Housing expenses (for those who use it as a workplace), water, electricity, internet and telephone. Deduction of 30% of the personal income tax on the proportional space of the house that is dedicated to the activity. 
  • Meals: € 26.76 per day maximum in Spain and € 48.08 per day maximum abroad. 
  • Self-employed training (public or private centers).
  • Social Security. 


This content is for guidance only and not a legal document or a recommendation, since we are not specialists and it is not our objective. We advise you to turn to a professional advisor to study your particular case if you have any doubts. 

You can find qualified professionals to help you with all these questions by visiting our website:

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