Understanding deductible expenses self employed Spain is essential to avoid overpaying taxes and ensure proper compliance with tax obligations.
Deductible expenses in self-employed activity.
Being self-employed should not mean overpaying out of lack of knowledge. The golden rule is simple: every expense must be linked to your activity, justified with a valid invoice, and genuinely assigned to your business. With that framework in mind, let us see how to make the most of what you already do and which details you should avoid stumbling over.
Let us start with everyday items. Rent and utilities for your office or workspace are deductible with their corresponding invoices. If you work from home, the Tax Agency allows you to apply to electricity, water, internet, etc. the formula (m² used for the activity / m² of the dwelling) × 30%. Your self-employed social security contributions, professional insurance (for example, civil liability or health when the requirements are met), accountancy and legal services, training, advertising and marketing, software and IT equipment, necessary subscriptions, as well as bank fees and charges linked to the activity are also deductible without issue. The key is always the same: invoice in your name and a direct relationship with the business.
Investments and asset depreciation.
Let us talk about investments. If you buy something that you will use for more than one year (a desk, an ergonomic chair, a laptop), it is usually considered fixed assets and is not deducted all at once, but gradually through depreciation. In practice, furniture is depreciated at up to 10% per year and IT equipment at up to 26%. In other words: a €1,000 desk can be deducted at €100 per year; a €1,200 laptop, at €312 in the first year if you apply 26%. You may choose a percentage within the official range and keep it constant: it is not always advisable to go “all out”; sometimes it is better to smooth the impact to stabilise the tax burden.
Vehicles and tax treatment.
With vehicles it is worth distinguishing. For VAT, in the case of passenger cars, the law presumes 50% business use, so 50% of the VAT is usually deductible, unless you prove a higher business use. For income tax (IRPF), however, the bar is higher: if the car has mixed use (professional and personal), the normal outcome is that the expense is not allowed. Only when you manage to demonstrate exclusive business use will depreciation and running costs pass the test. If we are talking about bicycles or other means, the same logic applies: only if the business use is clear and demonstrable (courier work, daily visits, etc.). The better you document that assignment (schedule, routes, signage), the fewer disputes you will have.
Practical tip:
Not every expense is automatically deductible. It must be directly linked to your activity and properly documented.
The €300 rule.
There is also a very useful tool that many overlook: the €300 rule. If you buy a new asset (not second-hand) and each unit costs €300 or less, you can deduct 100% in the same year without waiting to depreciate. There is a global limit of €25,000 per year across all these low-value assets. A practical tip: make sure the invoice shows the unit price. If you buy four chairs, it is better that they appear at €120 each rather than a single line of €480.
Invoice requirements and formalities.
And be careful with form: an incomplete invoice can ruin a deduction. It must include the issuer’s Tax ID and business name, date, sequential numbering, detailed description, and VAT itemised where applicable. A pro forma invoice is not valid. A simplified invoice will only allow you to deduct VAT if it includes your Tax ID and address and shows the VAT amount separately, and it also has usage limits. For significant expenses, request a full invoice in your name and keep everything; for meal expenses, use electronic payment and ask for an itemised bill.
Conclusion: paying what is fair as a self-employed professional.
In short: real linkage to the activity, a proper invoice, a well-planned depreciation schedule, and smart use of the €300 rule. With that script, you will pay what is fair and gain peace of mind.
Count on us. At TempleCambria we work with tax experts and managers specialised in international clientele, accustomed to aligning Spanish regulations with international realities.
You may also be interested in:
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ÁLVARO MORALES SOUSA
PARTNER – LAWYER
CUSTOM REPRESENTATIVE
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