If you're a freelancer or own an SME in Spain, every investment counts. Buying a new computer, updating your office furniture, or purchasing a vehicle for your business are significant expenses. The good news is that, from a tax perspective, you can recover part of that investment through amortization. But do you know exactly how it works?
Amortization is the accounting and tax mechanism that allows you to deduct the cost of your assets over their useful life, rather than all at once in the year of purchase. This way, you gradually allocate the expense in your Personal Income Tax (IRPF) (if you are a freelancer under the direct estimation scheme) or in your Corporation Tax.
How is Amortization Calculated? Official Tables
For the deduction to be valid, the Spanish Tax Agency (AEAT) provides official amortization tables. These tables set a maximum linear coefficient (an annual percentage) and a maximum number of years for each type of asset. The most common method is the straight-line method, which involves applying a constant percentage each year to the asset's acquisition value.
Some common examples for freelancers and SMEs include:
* Information processing equipment (computers, laptops, printers): Maximum coefficient of 25% per year (amortizable over a minimum of 4 years).
* Furniture and fixtures: Maximum coefficient of 10% per year (minimum 10 years).
* Transport vehicles: Maximum coefficient of 16% per year (minimum 6.25 years).
* Machinery: Maximum coefficient of 12% per year (minimum 8.33 years).
A practical tip: Assets with an acquisition value not exceeding €300 (excluding VAT) can be fully deducted as an expense in the year of purchase, with a total annual limit of €25,000. This is known as free amortization for low-value assets.
Key Requirements for Deducting Amortization
To apply amortization and have it accepted by the Tax Agency, you must meet three fundamental conditions:
1. Business Use: The asset must be directly and exclusively related to your economic activity. For vehicles, a 50% business use is presumed if used for both personal and professional purposes, unless you can prove exclusive use.
2. Ownership: The asset must be your property.
3. Accounting Record: You must keep a detailed record in your register of investment assets, noting the purchase date, value, applied coefficient, and annual amortization amount.
The Future of Record-Keeping: VeriFactu and Digitalization
Maintaining rigorous control over your assets and their amortization is crucial. With the upcoming implementation of verifiable invoicing systems, digitalization and the precise recording of all operations are more important than ever. This system, explained in our [What is VeriFactu? Guide for Freelancers in Spain](/en/what-is-verifactu-spain), aims to modernize and ensure the integrity of invoicing records.
While the deadline for companies to adapt is July 1, 2025, for most freelancers and micro-SMEs, the mandate will take effect on July 1, 2027. You can check all the details in our guide on [VeriFactu 2027: Deadlines for Freelancers in Spain](/en/verifactu-2027-deadline). Adapting in advance will allow you to manage not only your invoicing but also your amortizable assets more efficiently and securely.