The Self-Employed Law establishes new rules for personal income tax for self-employed workers. The Treasury note clarifies, with examples, the operation of the new deductions for this group.
The Tax Agency has published an explanatory note on the operation of the new deductions contemplated by the Self-Employed Law. The text is titled "Main tax developments introduced by Law 6/2017, of October 24, on urgent reforms of self-employment." It refers to the two measures that directly affect the Personal Income Tax, for which this type of professionals must declare.
As usually happens with this type of regulations, the legal wording opens the door to different interpretations, which is why the Tax Agency presents this document, with the intention of clarifying the deductibility of housing supply expenses that partially affects economic activity. , and the self-employed person's living expenses in direct estimation.
How to declare expenses for someone who works in a habitual residence
According to the note, housing supply expenses (water, gas, electricity, telephone and internet) will be deductible. However, the main doubts arise in the real amount that you can deduct from the invoices related to these supplies.
The Treasury specifies that "they will be deductible in the percentage resulting from applying 30 percent to the existing proportion between the square meters of the home used for the activity with respect to its total surface area, unless a higher or lower percentage is proven." And set the following example:
The habitual residence of a taxpayer is 100 m². The taxpayer affects the economic activity carried out by 40 m². Annual expenses for supplies amount to 5,000 euros.
Proportion of the habitual residence affected: 40 m² / 100 m² = 40%
Deduction percentage = 30% x 40% = 12%
Deductible expenses: €5,000 x 12% = €600
Living expenses
This point requires less clarification, since it is clearly specified in the approved regulations. According to the Treasury, maintenance expenses may be deducted to determine the net return on economic activity, in direct estimation. But, it is important to meet the following requirements:
That they are the taxpayer's own expenses.
That are carried out when developing the activity.
That occur in restaurant and hospitality establishments.
That it be paid by electronic means.
With the established limits of 26.67 euros per day, if the expense occurs in Spain, or 48.08 euros per day if it is abroad.
With the entry into force of the new Law, there are many self-employed workers who ask us questions about the application of the measures, and how they can benefit from them.
If this is your case, do not hesitate to contact our tax advisors who will be able to inform you applying them to your particular case.
English 
Spanish