What can you claim?

This guide takes a look at some of the general issues surrounding autonomo expenses as well as some of the specific categories that are often the subject of expense claims.

General expenses considerations

 

Nothing can be claimed without a valid invoice which means one with the supplier's name, CIF (business identification number), date, VAT, description of goods or service supplied and your name and NIE.*

Expenses can only be claimed if they are incurred in relation to the autonomo's trade or activities. Mostly such expenses are easily identifiable and obvious (e.g. stock if you are trader or subscription dues for professionals) but can be problematic in the case of items which have both a business and private use element. This problem is discussed more below.

Note that Spanish tax law is not prescriptive about what is and what is not allowable i.e. many of the "rules" you hear about are just accepted ways of applying the general rule and are not set down in law. Those operating the system know what claims the Agencia Tributaria view as acceptable because of the results of tribunals and investigations over the years but there is no hard and fast rule book.

Goods and services bought online (e.g. things like website hosting) are reclaimable exactly like those bought offline but again only with a proper invoice. Similarly anything imported can be claimed if it is for business use but care must be taken over the VAT treatment (see Autonomo VAT guide).

* - exceptionally some small items like taxi and meal receipts which are not full invoices may be allowable for income tax but not IVA (VAT) purposes

Expenses commonly claimed

Leaving aside the obvious cost of goods for any autonomos selling products, these are some of the other things autonomos typically claim with some additional detail for the more controversial or complex categories:

> Social security contributions

> Accounting and tax services

> Trade or professional association fees/subs

> Rent

Rent is an easy one if the autonomo has an office, shop or other premises when of course the rent is allowable (note that rent paid will be subject to retencion deductions which have to be paid over to the Tax Office quarterly as advanced income tax payments on behalf of the landlord). Rent on your home when this is used partly for work purposes is less easy to justify but a case can be made for claiming a proportion of the rent based on the proportion of floorspace taken up by the work area. Note that this cannot exceed 49% as otherwise the flat becomes a business premise not a dwelling and its tax and legal status completely changes. Note also that rent paid without a proper IVA invoice cannot be claimed at all.

> Heating, light and water

Utilities can be claimed on business premises and, in the case of home office type arrangements, using the same proportion as that used for claiming rent (see above). A similar concept applies to insurance.

> Office furniture and supplies

> Software and internet services

> Advertising and promotional materials

> Car or van

If a car or van has been bought specifically for the autonomo's business and is used exclusively for it, then the cost is allowable. The VAT is reclaimable right away but the allowable expense for income tax purposes is spread over 8 years (12,5% of the cost is deducted every year). If an autonomo is using his or her personal car for work purposes then the cost of the car is not generally not allowable even on a proportional basis. If an autonomo has only one vehicle then it will be assumed that it is used to some extent for personal purposes and therefore not claimable.

> Car insurance, maintenance and service costs

If a car is allowable as a capital expense (see above) then these running costs will also be claimable. Otherwise they are not because it is assumed they would have been incurred any way because of the autonomo using the car for personal use.

> Petrol

If you get a proper invoice for petrol you put in the car for a work-related journey then this can be claimed even if your car is not deemed exclusively autonomo use.

> Other travel

Train, taxi, parking, flights etc are allowable if demonstrably for business purposes but again proper invoices in your name are required for the most part. Some small receipts may be allowable for income tax purposes but not IVA.

> Telephone and internet

If a mobile, or a phone line or an internet connection is contracted for the autonomo business this is all allowable but again, when there is an element of personal use the claim is not so straightforward. If the phone or internet is in the office which is also claimed for then the claim is beyond dispute. Similarly if you have a private phone line and a private mobile besides your business one then the business costs should be allowable. But if you only have one mobile and a home phone it will be assumed that these are used for personal business as well, forcing you to identify specifically what charges relate to your autonomo business.

> Entertaining

Generally business meals where clients or other business contacts are present would be allowable but with a proper invoice being required for an IVA claim.