As the year 2023 is about to close and in order to think about the tax declaration that we will have to deliver to the Spanish Inland Revenue between April and June 2024, it is worth taking into account some new features introduced in the Spanish tax regulation since January 2023.
Probably one of the most striking ones is the reduction for freelancers (businessmen or professionals) who determine their net income tax return by the direct estimation method.
Indeed, the Law No. 31/2022, of December 23rd of 2022, establishes that those freelancers who have obtained net returns of less than €19,747.50 from their economic activity within 2023, may reduce these returns by the following amounts:
- Freelancers with a net income from economic activities not exceeding €14,047.50 (inclusive) might apply an annual reduction of €6,498.
- Freelancers with a net income from economic activities between €14,047.50 and €19,747.50 might apply an annual reduction of €6,498 less the result of multiplying by 1,14 the difference between the net income obtained and €14,047.50 (for instance: if the net income obtained were €18,000 the applicable reduction would be €6,498-(1,14 x €3.952,5)= €1.992,15
Anyway, this reduction is only applicable as long as the freelancer has not obtained other income (different from that of economic activities). (1)
This reform levels the tax treatment of income obtained by a self-employed with labour income (which has traditionally obtained a more favorable treatment).
(1) With the exeption of exempt income
