If you’re self-employed or considering registering as a freelancer in Palma to start your business, understanding your tax obligations is key to avoiding surprises. From our accounting firm in Palma, we clearly explain the main taxes affecting self-employed workers in Spain in 2025, how to calculate them, and when to file.

✅ Main taxes for self-employed workers in 2025

• VAT (Value Added Tax): Filed quarterly using form 303. Freelancers charge VAT on their invoices and transfer it to the tax office. It’s not a personal expense, but rather an amount passed on to the government.
• IRPF (Personal Income Tax): Applies to net profits (income minus deductible expenses). Declared quarterly with form 130 (or 131 for modules), with withholding rates usually ranging from 7% to 15%.
• Social Security contribution: Not technically a tax, but a mandatory monthly payment. It grants access to benefits such as sick leave and retirement.

Depending on your activity and location, there may be other obligations like property tax (IBI) or local municipal fees.

🧾 How is VAT calculated?

Here’s how self-employed workers calculate the VAT they need to pay:

1. Calculate VAT charged: Sum the VAT included in invoices issued (e.g. 21% on the taxable base).
2. Calculate VAT paid: Sum the VAT you’ve paid on business-related expenses and purchases.
3. Find the difference:
   VAT due = VAT charged - VAT paid
4. Declare using form 303: Submitted quarterly to the Spanish Tax Agency.

Example:

• Invoices issued: €5,000 + 21% VAT = €1,050 (VAT charged)
• Invoices received: €2,000 + 21% VAT = €420 (VAT paid)
• Result: 1,050 – 420 = €630 to pay

📊 How is IRPF calculated?

IRPF is based on annual net profit (income – deductible expenses) and follows a progressive scale:

Example of a freelancer with a taxable base of €30,000:

• 19% of the first €12,450 = €2,365.50
• 24% of the next €7,750 = €1,860
• 30% of the final €9,800 = €2,940
• Total IRPF: €7,165.50 (before deductions)

Freelancers make quarterly prepayments (form 130), usually 20% of net quarterly profits. The annual tax return adjusts the final amount owed or refunded.

✅ Want to forget about forms, deadlines, and calculations?

At our accounting firm in Palma, we handle all your taxes as a freelancer: VAT, IRPF, contributions, forms, and more. With personalized advice, tax filing, and deadline reminders, you just focus on your business—we’ll take care of the paperwork.