What income tax withholding (IRPF retención) does a freelancer in Spain apply on invoices?

Checked on 2026-10-25

15% of the gross fee for professional activities. If you are starting as a professional and did no professional activity in the year before, the rate is 7% in your first tax year and the two following, provided you tell the client in writing. Withholding applies when the payer is a business, professional or entity.

Key facts

What	The law says	Source
Standard rate	15% of gross income from professional activities	Ley 35/2006, art. 101.5.a; RD 439/2007, art. 95.1
New professionals	7% in the tax year you start and the two following, if you did no professional activity in the year before you started	RD 439/2007, art. 95.1
Condition for 7%	You tell the payer in writing; the payer keeps the signed communication	RD 439/2007, art. 95.1
What counts as “professional”	In general, activities in Sections 2 and 3 of the business tax (IAE) tariffs	RD 439/2007, art. 95.2
Who must withhold	Companies and other entities; people with a business or profession paying in the course of it; non-residents with a permanent establishment in Spain; among others	RD 439/2007, art. 76.1
Quarterly instalments	Not required for professional income if at least 70% of last year’s income from the activity had tax withheld	RD 439/2007, art. 109.2

How withholding works

The IRPF law (Ley 35/2006, art. 101.5) sets 15% withholding on income from professional activities defined by regulation, and lets the regulation set a 7% rate for some professionals. RD 439/2007, art. 95.1, applies 15% to the gross income paid for a professional activity.

First years. If you start a professional activity and did no professional activity in the year before you started, the rate is 7% for the tax year in which you start and for the two following years. To use it, you must tell the client that you meet this condition, and the client must keep your signed communication.

Who withholds. Withholding is done by the payer. RD 439/2007, art. 76.1, lists who must withhold, including companies and other entities, people paying in the course of their own business or profession, and non-residents operating in Spain through a permanent establishment.

Withholding and quarterly tax payments

Professionals normally pay quarterly IRPF instalments. Under RD 439/2007, art. 109.2, you don’t have to make them for your professional income if at least 70% of the previous year’s income from that activity had tax withheld. When you start an activity, the percentage withheld during the instalment period counts (art. 109.5).

Quarterly IRPF instalments and VAT returns are filed in the first 20 days of April, July and October and in the first 30 days of January (RD 439/2007, art. 111; RD 1624/1992, art. 71.4).

Sources

Change history

2026-10-25: Page created

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