Freelancer Taxes in Spain 2026: RETA and IRPF for the Self-Employed
Self-employed people in Spain (autónomos) contribute to Social Security through the RETA at a total verified rate of 31.5% on a contribution base chosen within the tramo matching their estimated monthly net income. They also advance 20% of accumulated net income quarterly through Modelo 130 of IRPF. At year-end, the TGSS reconciles provisional RETA contributions against the actual net income declared in the annual tax return.
The income-linked RETA system since 2023
Since 1 January 2023 (Real Decreto-ley 13/2022), autónomos contribute to Social Security based on actual estimated net income, replacing the former free-choice base model. Net income is classified into tramos: a reduced table with three tramos covers monthly net income below 1,166.70 EUR, and a general table with twelve tramos runs from that level up to the 2026 maximum base of 5,101.20 EUR per month. Each tramo sets a minimum and a maximum contribution base; the autónomo chooses any base within that range, defaulting to the tramo minimum. Contributions paid during the year are provisional; the TGSS reconciles them against actual declared net income in the following year.
RETA contribution rate and components for 2026
The total RETA contribution rate verified for 2026 is 31.5%, as set by Orden PJC/297/2026 (BOE-A-2026-7296). The breakdown is: common contingencies 28.3%, occupational accidents and diseases (AT/EP) 1.3%, Intergenerational Equity Mechanism (MEI) 0.9%, cessation-of-activity coverage (cese de actividad) 0.9%, and vocational training (FP) 0.1%. Applied to the minimum base of the lowest reduced tramo (653.59 EUR/month, verified in Orden PJC/297/2026), the minimum monthly quota is approximately 206 EUR. For higher-income tramos the minimum base rises substantially, increasing the monthly quota accordingly.
Calculating net income for tramo selection
The income used to identify the tramo is not gross billing, but net profit after deducting allowable business expenses. Under estimación directa, a generic deduction of 7% is then applied to the net profit (3% under the modules method, estimación objetiva). The resulting monthly figure is matched against the tramo ranges published in Orden PJC/297/2026. Since RETA contributions are themselves deductible for IRPF, there is a circularity: the quota reduces net income, which may shift the tramo, which changes the quota. The paycalceu.com calculator resolves this iteratively, typically converging in fewer than ten steps.
Quarterly IRPF prepayments and annual settlement
Self-employed taxpayers under estimación directa file Modelo 130 each quarter, paying 20% of the cumulative net income for the year to date, minus previous quarterly payments and any IRPF withheld from invoices. If most clients are businesses or professionals who apply IRPF withholding to invoices — typically 15%, or 7% in the first years of activity — those withheld amounts reduce or eliminate the Modelo 130 payment. The annual Declaración de la Renta settles the difference between prepayments and the final tax liability computed using the state and regional IRPF scales after applying all deductions and the personal and family minimum.
Tarifa plana for new registrants and pluriactividad
First-time registrants are entitled to a reduced flat monthly quota for an initial period. The specific 2026 amount had not been officially confirmed at the time of data verification; the framework established by Real Decreto-ley 13/2022 set a historical reference of 80 EUR per month for the first registration period. Check the current figure at the TGSS electronic office (seg-social.es) before registering. Autónomos who are simultaneously employees (pluriactividad) are entitled to a 50% refund of RETA contributions that exceed the pluriactividad threshold set for 2026. This guide is informational; verify your situation with a qualified gestor or tax advisor.
FAQ
How is the RETA tramo determined in 2026?
Take the net profit from the activity (income minus allowable expenses including RETA contributions), apply the 7% generic deduction for estimación directa (or 3% for modules), and divide by 12 to get the monthly figure. Match this against the tramo ranges in Orden PJC/297/2026. The tramo can be changed up to six times per year through the TGSS portal if estimated income changes materially.
What is the annual RETA regularisation?
After the annual IRPF return is filed, the TGSS compares provisional contributions paid during the year with the amount that would have applied to the actual declared net income. If real income exceeded the estimate, a supplementary charge is due; if it was lower, an excess refund is issued. Maintaining accurate income and expense records throughout the year helps produce close provisional estimates and avoids unexpected year-end adjustments.
Which expenses are deductible for IRPF as a self-employed person?
Deductible expenses include any cost ordinarily incurred for the economic activity: office rent, utilities, insurance, equipment depreciation, employee wages, and professional training costs. RETA contributions are also deductible, creating the circularity the calculator resolves iteratively. Under estimación directa simplificada, a further 5% of net income is deductible for hard-to-evidence expenses, capped at 2,000 EUR per year. Expenses with mixed personal and professional use are only deductible in the proportion attributable to the business.
What IRPF withholding rate should a freelancer apply on invoices?
Professional-activity autónomos generally apply a 15% IRPF retention (retención) to invoices issued to business or professional clients. Those registering for the first time may apply a reduced 7% rate in the year of registration and the two following calendar years. These withheld amounts are credited against quarterly Modelo 130 payments and the annual return. The applicable rate depends on the specific type of activity; verify with a qualified tax advisor.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.