Becoming a freelancer in Spain: how to make a legal invoice

If you want to work as a self-employed worker, it is important to know that you still need to pay taxes. For the tax agency to know your income; issuing, submitting, and keeping invoices are essential practices for any self-employed worker. Besides, it is also a crucial way to keep track of profits. In this article, we will explain how to make an invoice and what information needs to be included.

1. What is the data/information needed to be included?

2. How to calculate the final amount considering all the taxes?  

3. Advice from Adeslas

1. What is the data/information needed to be included?

Whatever the type of service carried out, the invoice should include key information such as:

• Invoice number: Each invoice should have a unique number. The first invoice of the fiscal year should be ordered from one, and each successive invoice should be numbered accordingly. This is an important detail that a tax agency will usually keep an eye on.
• Invoice date: Date of the invoice issuance
• Name and information of the freelancer and the client:
  • full name of both parties
  • home address/company address where the activity is carried out
  • the address of the client
  • DNI, NIF, NIE, or CIF of both parties
  • contact details such as email or phone number
• Description of the activity:
  • Name of the product or service
  • Unit price
  • Base rate (base imponible): final price without taxes
  • VAT(IVA): The VAT tax applicable for the case. In most cases, the tax rate is about 21% of the base rate, but there are cases that the taxes would be as small as 10% or less. You need to research your specific case.
  • Income tax (IRPF): The IRPF tax rate is usually 7% for the first two years as self-employed, and 15% afterward. You need to include this in the sheet if it is applicable.
  • Total invoice (Total factura): the final amount considering all the taxes
• Payment method

2. How to calculate the final amount considering all the taxes?  

You need to consider all the factors to calculate the final amount. This final amount is what the client needs to pay to you: you need to add up the taxable base and VAT, then subtract the income tax retentions.

For example, if the base rate is 100€, VAT is 21%, IRPF is 15%. The total amount you receive from the client should be 106 €. (100+100*21%-100*15%=106). This amount is the total invoice, also known as the total factura in Spanish.

You may wonder why the freelancer should subtract the IRPF from the amount that a client pays. It acts as if you have already “paid” the income tax to your client, and now it’s the obligation of your client to declare and pay this amount (15€ in our example) in the tax agency for you.

3. Advice from Adeslas

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Check out this blog if you are curious about becoming a freelancer: 

• Guide to the income tax statement in Spain
• Guide on how to open a business in Spain
• Can an international student earn extra money while studying in Spain?
• Job opportunities for expats in Spain
• Guide to a job-seeking residence permit (Permiso de residencia para la búsqueda de trabajo)
• Becoming a freelancer in Spain: tax payment and social security contributions
• Becoming a freelancer in Spain: visa options

Reference:

[1] BOE.es - BOE-A-2012-14696 Real Decreto 1619/2012, de 30 de noviembre, por el que se aprueba el Reglamento por el que se regulan las obligaciones de facturación. (2021). Retrieved 11 November 2021, from https://www.boe.es/buscar/act.php?id=BOE-A-2012-14696

[2] Cómo calcular la retención de una factura con IVA y con IRPF. (2016). Retrieved 11 November 2021, from https://www.bbva.com/es/como-calcular-retencion-factura-iva-irpf/ 

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