20% IRPF Deduction for New Self-Employed Workers
If you’re considering registering as self-employed, our tax consultancy in Palma de Mallorca wants to inform you about a very interesting tax benefit. When you complete your self-employment registration in Palma de Mallorca, you can take advantage of a 20% deduction on your profits, which means significant savings on your income tax return.
What is this IRPF deduction?
It is a tax incentive that allows you to deduct 20% of your net positive income (i.e., profits after deducting expenses) from your IRPF tax base. This results in paying less tax during the early years of your activity.
Who can benefit from this deduction?
- Only individuals (not companies) can apply for this benefit.
- You must have recently started an economic activity and not have had another with positive income the previous year.
- You must be taxed under the direct estimation regime, whether normal or simplified.
- The deduction does not apply if more than 50% of your income comes from a company with which you have had an employment relationship.
How long can this deduction be applied?
The deduction can be applied for a maximum of two tax years:
- The first year in which your activity generates profits.
- And the following year, if you continue to obtain positive income.
If you don’t make a profit in the first year, you can apply the deduction as soon as there are benefits, always within the first two years of positive results.
Is there a financial limit?
Yes. The deduction can only be applied to the first €100,000 of net income per year.
How is this deduction applied?
No additional form is required. The deduction is included directly when completing Form 100 of the income tax return, by checking the boxes corresponding to income from starting an economic activity.
Practical example
Imagine you start your self-employed activity in 2025 and you earn a net profit of €30,000. You’ll be able to apply a €6,000 deduction on your tax base (20%). If you also earn a profit in 2026, you can apply the deduction again for that second year.
We make your registration and tax return easier
From our tax consultancy in Palma, we assist you with all the procedures for your self-employment registration in Palma de Mallorca, and ensure that you make the most of every available tax benefit. This deduction is a great opportunity to start your business with real financial relief.
20% IRPF Deduction for New Self-Employed Workers
If you’re considering registering as self-employed, our tax consultancy in Palma de Mallorca wants to inform you about a very interesting tax benefit. When you complete your self-employment registration in Palma de Mallorca, you can take advantage of a 20% deduction on your profits, which means significant savings on your income tax return.
What is this IRPF deduction?
It is a tax incentive that allows you to deduct 20% of your net positive income (i.e., profits after deducting expenses) from your IRPF tax base. This results in paying less tax during the early years of your activity.
Who can benefit from this deduction?
- Only individuals (not companies) can apply for this benefit.
- You must have recently started an economic activity and not have had another with positive income the previous year.
- You must be taxed under the direct estimation regime, whether normal or simplified.
- The deduction does not apply if more than 50% of your income comes from a company with which you have had an employment relationship.
How long can this deduction be applied?
The deduction can be applied for a maximum of two tax years:
- The first year in which your activity generates profits.
- And the following year, if you continue to obtain positive income.
If you don’t make a profit in the first year, you can apply the deduction as soon as there are benefits, always within the first two years of positive results.
Is there a financial limit?
Yes. The deduction can only be applied to the first €100,000 of net income per year.
How is this deduction applied?
No additional form is required. The deduction is included directly when completing Form 100 of the income tax return, by checking the boxes corresponding to income from starting an economic activity.
Practical example
Imagine you start your self-employed activity in 2025 and you earn a net profit of €30,000. You’ll be able to apply a €6,000 deduction on your tax base (20%). If you also earn a profit in 2026, you can apply the deduction again for that second year.
We make your registration and tax return easier
From our tax consultancy in Palma, we assist you with all the procedures for your self-employment registration in Palma de Mallorca, and ensure that you make the most of every available tax benefit. This deduction is a great opportunity to start your business with real financial relief.
Gestoría en Palma de Mallorca.
Si buscas una gestoría cerca de ti, asesoramos a empresas en el ámbito laboral, fiscal y contable. También somos una gestoría administrativa en Palma y realizamos traspasos de vehículos.
