What expenses can a freelancer deduct?

Freelancers can deduct necessary expenses for their activity: office supplies, computer equipment, software, office rent, utilities (if working from home), transportation, professional training, insurance, and the self-employed contribution itself. The key is that they're directly related to the activity.

What is the 5% hard-to-justify expenses deduction?

It's an automatic 5% deduction on your net income (income minus expenses), capped at €2,000 per year. Only applies in simplified direct estimation regime. It covers small expenses without invoices that are difficult to document.

Can I deduct my mobile phone if it's personal and professional?

Yes, but only 50% if it's mixed use. To deduct 100%, you need an exclusively professional line. The tax authority is strict about this and may reject deductions above 50% without justification.

What percentage of utilities can I deduct if I work from home?

30% of the percentage of home used for business. Example: if your office occupies 20% of your home, you can deduct 30% of that 20%, i.e., 6% of total utilities. You must have notified the tax authority of professional use via form 036/037.

Do I need an invoice to deduct an expense?

Yes, to deduct VAT you need a complete invoice with all tax details. For IRPF, in some cases a receipt or bank statement suffices, but it's recommended to always request an invoice. The self-employed contribution is justified with the bank statement.

Can I deduct business meals?

IMPORTANT: VAT on meals and hospitality is NOT deductible (Art. 96.1.6º LIVA). You can only deduct the base amount for IRPF purposes. The expense must be justified with an invoice, must be outside your municipality of residence, and total deductions cannot exceed 1% of your annual revenue. Always keep the invoice and note the meeting reason.

Deductible Expenses Calculator for Freelancers

Discover how much you can save on taxes with your business expenses. Calculate recoverable VAT, IRPF deductible expenses and the 5% hard-to-justify expenses deduction. Free, no registration required, updated for 2026.

Calculation parameters

Annual net income

€

Income minus deductible expenses (to calculate the 5% deduction)

Marginal IRPF rate

Your IRPF bracket to calculate real savings

Expenses by category

Enter your annual expenses in each category (VAT included)

Office supplies

€

VAT: 100% • IRPF: 100% deductible

Computer equipment

€

VAT: 100% • IRPF: 100% deductible

Software and subscriptions

€

VAT: 100% • IRPF: 100% deductible

Phone and internet

€

50% mixed use (100% if exclusive professional line)

Home office utilities

€

VAT: 30% • IRPF: 30% of business %

Office rent

€

VAT: 100% • IRPF: 100% deductible

Transportation

€

VAT: 50% • IRPF: 50% (mixed use)

Business vehicle

€

VAT: NOT deductible (passenger cars) • IRPF: 50% (mixed use)

Professional training

€

VAT: 100% • IRPF: 100% deductible

Insurance

€

No VAT • IRPF: 100% deductible

Business meals

€

VAT: 0% (not deductible) • IRPF: 100%

Self-employed contribution

€

No VAT • IRPF: 100% deductible

Calculation result

Total expenses entered

€0.00

Recoverable VAT

€0.00

IRPF deductible expenses

€0.00

5% automatic deduction (max €2,000)

€0.00

Total estimated savings

€0.00

Your estimated tax savings

VAT savings0.00 €

IRPF savings0.00 €

How to use the deductible expenses calculator

Calculate how much you save on taxes with your business expenses in 4 simple steps:

Enter your net income

Enter your income minus expenses to calculate the 5% deduction

Select your marginal rate

Choose your IRPF bracket to calculate real savings

Enter your expenses by category

Add the amounts for each expense type (VAT included)

Review the breakdown and savings

See how much you save on VAT and IRPF with each expense

Key concepts for deductible expenses

Understanding these concepts will help you maximize your tax deductions:

Deductible VAT

VAT you pay on business expenses that can be recovered on Form 303. Only deductible if you have a complete invoice.

IRPF deductible expenses

Expenses that reduce your IRPF tax base. They must be necessary for your activity and properly documented.

Hard-to-justify expenses

Automatic 5% deduction on net income, capped at €2,000/year. Only applies in simplified direct estimation regime.

Proportional use

Some expenses (phone, vehicle, utilities) only allow deducting the professional use percentage, typically 50% if mixed use.

Why use our deductible expenses calculator?

Calculates recoverable VAT for each expense category
Shows IRPF deductible expenses with official percentages
Includes automatic 5% deduction calculation (max €2,000)
Detailed breakdown for each expense category
Total estimated tax savings based on your marginal rate
Free, no registration required, updated for 2026

Frequently asked questions about deductible expenses

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