IRPF stands for Impuesto sobre la Renta de las Personas Físicas — Spain’s personal income tax. If you’re an autónomo, IRPF applies to the income you earn from your work or business.
IRPF is included as a negative amount on some invoices.
Honestly, I’m still a bit confused about IRPF but I pay it at the end of the year and put it onto some invoices.
I definitely recommend speaking to your gestor about what percentage to use and when to use it.
Only certain invoices from autónomos include IRPF, which depends on the type of activity you do and who you’re invoicing.
Here is some general information:
Invoices with IRPF retención (you deduct IRPF):
You are a professional autónomo (actividad profesional in your IAE code), such as a designer, writer, consultant, translator, etc.
You’re invoicing a Spanish business or professional (not a private individual).
You include IRPF (normally 15%, or 7% if you’re in your first 3 years) as a negative amount on the invoice which reduces the amount the client pays you, because they send that withheld tax to Hacienda on your behalf.
Invoices without IRPF:
You’re doing a commercial or trade activity (actividad empresarial), like selling products, running a shop, or providing certain hands-on services (e.g. catering, repairs).
You’re invoicing private individuals (B2C) — you can’t apply IRPF to these invoices.
You’re invoicing clients outside Spain — no IRPF applied.
Example of an invoice with IRPF:
If you’re a freelance copywriter working for a Spanish agency, your invoice might look like this:
Service fee: €1,000
VAT (21%): €210
– IRPF (15%): €150
Total to be paid to you: €1,060
The agency pays you €1,060 and reports the €150 directly to AEAT in your name.
Are there any exceptions?
Yes. If at least 70% of your income comes from clients who withhold IRPF when they pay you, then you don’t have to file Modelo 130 each quarter. Instead, they deduct a percentage (usually 15%, or 7% if you’re newly registered) and send it directly to Hacienda. You’ll still do the annual return, though.
This setup is common for freelance professionals like writers, designers, translators, or consultants working for companies who handle the withholding.
Summary of key IRPF percentages for autónomos:
20% is paid quarterly advance if using Modelo 130
15% is the standard IRPF withholding rate applied by clients
7% is the reduced withholding rate for new autónomos (first 3 years)
Declaring IRPF for autónomos
As an autónomo, you’re responsible for declaring and paying your own IRPF. You do this through one or both of the following:
Quarterly payments (pagos fraccionados): You file form Modelo 130 every three months and pay 20% of your net income (income minus deductible expenses) as an advance toward your final annual tax bill.
Annual tax return (Declaración de la Renta): Filed around April–June using form Modelo 100. Here you declare all your income (including from clients, jobs, rental properties, etc.) and settle the final amount. If you overpaid through quarterly payments, you get a refund. If you underpaid, you make up the difference.
