Which expenses can an autónomo deduct, and which can cause problems with Hacienda?

Being an autónomo (a self-employed worker registered with Spanish social security) means taking on a lot of expenses: phone, vehicle, materials, rent, software, travel… However, paying for something related to your work does not automatically mean it can be deducted.

For an expense to be tax-deductible, it must be related to the business activity, be correctly recorded in the accounts or the compulsory record books, be allocated to the right period and be properly supported by documents.

Basic requirements for deducting an expense

As a general rule, the expense must meet three conditions:

• Be related to the professional or business activity.
• Have a full invoice in the autónomo's name.
• Be correctly booked or recorded.

A till receipt or bank statement can prove that a payment was made, but it does not always replace a full invoice. That is why you should ask suppliers for an invoice and check that it includes the name or company name, NIF (tax ID), date, description, taxable amount and taxes.

Common expenses that may be deductible

Depending on the activity, expenses that may be deducted include:

• Rent of an office, practice, shop or industrial unit.
• Utilities for the business premises.
• Software and digital tools.
• Advisory, legal, advertising or web design services.
• Office supplies and consumables.
• Insurance related to the activity.
• Self-employed social security contributions.
• Professional training related to the business.
• Staff costs and employees' Seguridad Social contributions.
• Repairs and maintenance of professional equipment.

The contributions paid by the business owner to the RETA (Régimen Especial de Trabajadores Autónomos, the self-employed social security scheme) are included among the business expenses, subject to any adjustments arising from the regularisation of contributions.

Expenses that need particular care

The expenses that tend to raise the most questions are vehicles, fuel, mobile phones, meals, travel and the costs of a home used partly as an office.

In these cases, Hacienda (the Spanish tax agency) may require you to show clearly the link between the expense and the activity. It is not enough to say that the vehicle or the phone is used for work: it is important to keep invoices, contracts, diaries, travel records and any document that proves professional use.

The IVA (Spanish VAT) and IRPF (Spanish income tax) rules should also be checked separately, as an expense can be treated differently under each tax.

The most common mistake: deducting without paperwork

One of the most frequent mistakes is including every payment made from the business account without first checking whether it is deductible. Mixing personal and business expenses can lead to adjustments, interest or penalties if you are inspected.

The best solution is to review your paperwork regularly and not wait until the end of the quarter.

We help you review your expenses

At Lexum Asesores we look at each expense in the light of your activity and help you keep your accounts organised and properly supported.

Questions about invoices, fuel, vehicles, meal allowances or office expenses? Contact our tax advisers in Torrevieja and we will review your situation before you file your taxes.