Freelance invoice calculator for Spain: VAT, withholding and net amount
Enter the taxable base, pick the VAT rate and the IRPF withholding that applies, and get the VAT amount, the withholding, the invoice total and the amount you will actually receive. Below we explain when a Spanish invoice carries withholding tax and why the total and the net amount differ.
Not sure which withholding applies?
Suggested withholding: 15 % general
| Item | Calculation | Amount |
|---|---|---|
| Taxable base | — | 1.000,00 € |
| VAT amount (21 %) | 1.000,00 € × 21 % | 210,00 € |
| Invoice total (base + VAT) | 1.000,00 € + 210,00 € | 1.210,00 € |
| IRPF withholding (15 %) | 1.000,00 € × 15 % | −150,00 € |
| Net amount receivable | 1.210,00 € − 150,00 € | 1.060,00 € |
The client transfers you the net amount and pays the withholding to the tax agency through form 111; you deduct it in your income tax return.
How a Spanish invoice with VAT and withholding is calculated
The taxable base is the price of your service before taxes. VAT is applied on top of it; Spain has three rates: the general 21 %, the reduced 10 % and the super-reduced 4 %, while some activities, such as regulated training or certain healthcare services, are exempt. Base plus VAT is the invoice total. If IRPF withholding applies, it is also calculated on the base and subtracted from the total: the result is the net amount your client pays you. The withholding does not vanish: the client pays it to the tax agency in your name through form 111, and you deduct it in your annual income tax return.
When an invoice carries withholding tax
IRPF withholding only appears when a professional (activities in section two of the IAE business tax: lawyers, designers, developers, consultants and so on) invoices a company, another freelancer or a homeowners' association. The general rate is 15 % (article 95.1 of the Spanish personal income tax regulation). If you are in the year you started your activity or in the two following years, you may apply 7 % by informing the payer in writing. Invoices to private individuals never carry withholding, and neither do business activities (retail, hospitality, construction and the like), even when the client is a company.
Worked example
A designer invoices €1,000 to an agency: 21 % VAT = €210, 15 % withholding = €150. The invoice total is €1,210 and the net amount receivable is €1,060. The agency pays the €150 withheld through form 111, and it appears in the annual summary, form 190, under key G01 (G03 when the rate is 7 %).
Frequently asked questions
What is the difference between the invoice total and the net amount receivable?
The total is base plus VAT and is the value of the transaction. The net amount is the total minus IRPF withholding: what the client actually transfers to you. The difference is paid by the client to the tax agency in your name.
Should I apply withholding when invoicing a private individual?
No. IRPF withholding only applies when the payer is a company, another freelancer or a homeowners' association. A private individual is not required to withhold or to file form 111.
Who can apply the 7 % withholding rate?
Professionals in the year they start their activity and in the two following years, provided they inform the client in writing. After that period the general 15 % applies.
Is withholding calculated on the base or on the total including VAT?
On the taxable base, never on the total including VAT. With a €1,000 base the 15 % withholding is €150, even though the invoice including VAT comes to €1,210.
Can a VAT-exempt invoice carry withholding?
Yes. The exemption concerns VAT; withholding depends on who invoices whom. A VAT-exempt trainer invoicing an academy still applies 15 % or 7 %, and states on the invoice the rule that grants the exemption.
General information based on Royal Decree 1007/2023, Order HAC/1177/2024 and the Spanish Invoicing Regulation. It is not tax advice: for your specific case, check the AEAT electronic office.