Congratulations! You’ve made it as a blogger, YouTuber, Instagrammer or other internet sensation. You might be earning from AdSense, the Amazon Associates Program or private clients, or you might be hoping to soon. But there’s one question you might not have thought about if you’re freelancing in Spain: what taxes do you need to pay?
An initial thought you might have, especially if you’re not earning much, is “can I pay tax without being self-employed in Spain?“. You can find some thoughts on exemptions here.
In general, however, there’s 3 sorts of tax that everyone who is self employed in Spain needs to pay: Social Security, Income Tax (IRPF) and VAT (IVA).
- Getting started: when you sign up as a freelancer (which, in my opinion, is your easiest option), you’ll need to use the IAE epigraph 844 (advertising services). YouTubers will also need 961.1 (video production).
Social Security
- The same for bloggers, YouTubers, etc. as for any other type of freelancer in Spain
- Starts at €50/month for new autónomos (self-employed people in Spain) and goes up to just under €300/month
Income Tax (IRPF)
- As the type of business activity you are carrying out does not count as “Professional Services”, you will need to fill in Modelo 130 every quarter and advance 20% of your earnings.
- At the end of the year, you will need to fill out the Declaración de la Renta summary form. Depending on how much you’ve earned and your personal situation, you might either be returned some of the 20% you’ve advanced or be asked to pay more.
VAT (IVA)
If you are receiving money from within Spain…
- This sort of business activity pays full-rate VAT (21%).
- This needs to be paid in quarterly with Modelo 303.
- You will also need to fill in the annual Modelo 390.
- Don’t forget to charge VAT on your invoices (you don’t need to charge Income Tax as you advance a standard fee of 20% every quarter). Spanish invoice template here.
If you are freelancing in Spain and receiving money from within Europe… (Google AdSense normally falls into this category, due to their offices in Ireland)
- You do not need to pay VAT or include it in invoices.
- Both you and the entity you’re receiving money from need to have signed up in the Registro de Operadores Intracomunitarios and have a VAT number.
- You do this using Modelo 036 when you originally sign up as self employed (check box 582 and write the date of your first expected European transaction in box 584).
- You can check whether the other party has a VT number here.
- You will need to fill in Modelo 349 every quarter (if you’re earning more than €50,000 from other European countries) or yearly (if you’re earning more than €35,000, or €15,000 to any single country).
- You do not need to pay anything; this Modelo is purely informative.
If you are receiving money from outside of Europe… (I believe the Amazon Associates Program falls into this category)
- You do not need to pay VAT.
Also, don’t forget…
- If you earn more than €3,000 from any single client, you will need to fill in informative-only Modelo 347.
Sources: ASEPYME
