As an Autonomous worker you may be obliged to pay a percentage of your tax upfront when invoicing clients, called IRPF. This tax is paid directly to Agencia Tributaria and if you’ve paid more than you owe in advance, it will be swiftly returned to you during tax returns.
Autonomous workers paying IRPF retenciones will thus be relieved at the news that IRPF will be reduced from the current 21% to 19% in 2015 and further down to 18% in 2016 which is great news as you will have increased liquidity not having to pay as much tax in advance. A far cry from 2012’s distant IRPF of 15% this is still progress and better than what was promised by the government who were only going to decrease it to 20% in 2015.
Freelancers earning less than €15,000 will still only pay the 15% IRPF going forward.
Please contact us here at Spainwide if you need help with your finances or would like to set yourself up as an autonomous worker.