Self-Employed Tax in Spain

Spain registers self-employed individuals under the Regimen Especial de Trabajadores Autonomos (RETA) for social security and taxes their net business income through the general Impuesto sobre la Renta de las Personas Fisicas (IRPF) system. Two parallel obligations run side by side: monthly RETA contributions to Seguridad Social and quarterly IRPF prepayments plus IVA returns to the Agencia Tributaria (AEAT). Both authorities link to actual profit in 2025, which was not the case before the 2023 reform.

How does the progressive RETA cuota work in 2025?

Royal Decree-Law 13/2022 overhauled autonomo social-security contributions effective 1 January 2023, replacing the widely criticised flat fee (which had reached roughly EUR 294-308 per month regardless of income) with a 15-bracket system keyed to rendimiento neto computable -- monthly net income calculated as: (annual gross receipts minus deductible business expenses) multiplied by 0.93, divided by 12. The 0.93 factor reflects a 7% flat-rate deduction available to most autonomos (company directors use 3%) [1][2].

Contributions are provisional throughout the year. At year-end Seguridad Social compares declared annual income from the Renta return against the bracket used and either issues a refund or charges the shortfall. Autonomos may request bracket changes up to six times per year when income forecasts change significantly [1].

The 2025 bracket table, confirmed at the same rates as 2024 following a freeze enacted by Royal Decree-Law 16/2025, is shown below.

All figures are subject to an additional 0.9% MEI (Mecanismo de Equidad Intergeneracional) surcharge, which pushes the effective amounts slightly higher (for example, the EUR 590 top bracket becomes approximately EUR 607 including MEI). RETA contributions are themselves fully deductible as a business expense when calculating IRPF [1].

What is the tarifa plana for new autonomos?

First-time autonomos -- or those who have not been registered in RETA for at least two years (three years if a tarifa plana was previously claimed) -- qualify for a reduced flat contribution of EUR 80 per month for the first 12 months from their date of alta. Including the 0.9% MEI surcharge the actual monthly debit is approximately EUR 88.64 [3].

The 12-month period can be extended to 24 months if, at the time of the initial period's expiry, monthly net income remains below the Salario Minimo Interprofesional (SMI -- Spain's minimum interprofessional wage, set at EUR 1,134 per month gross in 2024). Certain groups -- autonomos with a recognised disability of 33% or more, victims of gender-based violence, and terrorism victims -- may be eligible for extended tarifa plana periods of up to 36 months [3].

The tarifa plana applies to the social-security RETA contribution only. IRPF prepayments via Modelo 130 and IVA returns via Modelo 303 run from the first quarter of registration regardless of tarifa plana status [3].

How is IRPF calculated on autonomo net income?

Autonomo net business income flows into the general base liquidable general of the IRPF return and is taxed through a combined state-plus-regional progressive scale. The state-level bracket structure for 2025 runs from 9.5% on the first tranche to 24.5% on income above EUR 300,000; regional rates set by each of Spain's 17 Autonomous Communities add a parallel progression. Published combined (state plus regional) rates widely cited for 2025 are [4][5]:

• 19% on net income up to EUR 12,450
• 24% on EUR 12,450 to EUR 20,200
• 30% on EUR 20,200 to EUR 35,200
• 37% on EUR 35,200 to EUR 60,000
• 45% on EUR 60,000 to EUR 300,000
• 47% on income above EUR 300,000

These combined rates are national averages. Madrid applies a lower regional scale (combined top around 45%); Cataluna and Valencia apply higher regional rates (combined top around 50-54%). The Basque Country and Navarre operate independent Foral systems with their own brackets.

Quarterly prepayments under Modelo 130 are due by the 20th of April, July, and October, and by the 30th of January for Q4. Each instalment equals 20% of cumulative net profit for the year to date, minus prior instalments already paid. Autonomos whose income from a single business client is subject to 15% withholding (retencion) may reduce the 20% instalment accordingly. The annual reconciliation happens via Modelo 100, filed between 1 April and 30 June of the following year [4].

Autonomo income is eligible for a personal minimum (minimo personal) of EUR 5,550 (EUR 6,700 from age 65; EUR 8,100 from age 75), which reduces the effective tax on the lowest tranche [4].

What IVA obligations apply -- Modelo 303?

Spain does not operate a small-business VAT registration threshold equivalent to France's franchise en base or Germany's Kleinunternehmer rule. Autonomos register for IVA (Impuesto sobre el Valor Anadido) from their first day of activity and charge it on every taxable invoice regardless of annual turnover [6].

The standard IVA rate is 21% for most goods and services. A reduced 10% rate applies to sectors including restaurants, hotels, and passenger transport. A super-reduced 4% rate covers basic food, books, and medicines. Certain professional services -- notably healthcare, education, and some creative activities -- may qualify for IVA exemption; verification with a gestor is essential before assuming exemption applies [6].

Quarterly Modelo 303 declarations report the difference between IVA charged on sales (IVA repercutido) and IVA paid on qualifying business expenses (IVA soportado). A positive difference is payable to AEAT; a negative balance can be carried forward or, after the Q4 declaration, refunded. Filing deadlines are 1-20 April (Q1), 1-20 July (Q2), 1-20 October (Q3), and 1-30 January (Q4). An annual summary via Modelo 390 is due by 30 January [6].

Which expenses are deductible for autonomos?

Deductible expenses reduce both the IRPF taxable base (via Modelo 130 and Modelo 100) and the IVA soportado recoverable through Modelo 303. The general rule under Ley 35/2006 requires that expenses be related exclusively to the economic activity, properly invoiced, and recorded in accounting books [4][5].

Key deductible categories include:

• RETA social-security contributions: Always 100% deductible against IRPF net income [2]
• Office or dedicated workspace rent: 100% deductible for commercial premises; for home offices the deductible portion of rent and utilities is calculated by dividing the work-dedicated floor area by total dwelling area (typically 10-30%) [5]
• Professional services: Accountant (gestor), lawyer, and specialist fees are 100% deductible when related to the activity [5]
• Phone, internet, and software subscriptions: Deductible at the percentage attributable to professional use; a dedicated business line or subscription is generally 100%, shared personal use typically 50% [5]
• Equipment and supplies: 100% if exclusively professional; computers, cameras, and professional tools qualify; equipment above EUR 300 is depreciated over its useful life [5]
• Training and professional development: 100% if directly related to the current activity [5]
• Health insurance premiums: Deductible up to EUR 500 per year per person (autonomo plus spouse and children) under Article 30.2.5 Ley IRPF; must be a private health policy directly linked to professional registration [4]

Record-keeping obligations run for four years (the AEAT statute of limitations). Invoices for all deductible expenses -- including supplier name, NIF, taxable base, IVA rate, and IVA amount -- must be retained in their original form; simplified receipts from vending machines or taxis do not qualify for IVA soportado recovery.

Spain's autonomo tax landscape is among the more complex in the EU, combining two parallel regulatory bodies (AEAT and Seguridad Social), dual quarterly filing obligations, and significant regional variation in IRPF rates. For a broader overview of Spanish tax residence, property, and capital-gains rules, see the Spain country overview. A qualified tax professional -- in Spain the relevant designation is asesor fiscal (registered with REAF-CGE or AEDAF) or a gestor administrativo for combined social-security and tax compliance -- is best placed to apply these rules to individual circumstances.