The more deductible expenses you have and can prove, the less profit you pay tax on. The list of what counts as deductible is rarely the problem. The problem is having it properly documented when the Spanish tax agency (Hacienda) reviews it.
The general rule
An expense is deductible if it is necessary for your business, linked to it, and backed by a full invoice in your name. A till receipt or a Bizum confirmation is not, on its own, sufficient proof.
Common expenses
- Purchases of materials and stock.
- Utilities and rent for your premises, or the proportional part if you work from home (explained in deducting housing expenses if you work remotely).
- Your self-employed social security contribution (cuota de autónomos) and any insurance tied to your business.
- Fees paid to an accountant/tax advisor (gestoría), lawyer, or other professionals you hire.
- Advertising, your website, and the software tools you use to work.
- Training directly related to your business.
- Your vehicle, but only if it is “exclusively used” for the business: transport, sales reps, taxi drivers. This is one of the expenses with the most nuance: we cover it in how much you can deduct for your car as a self-employed worker.
- If you have business premises: repairs, cleaning services, and any expense tied to maintaining the space.
What usually raises doubts
Meals and client entertainment are deductible, but with limits and only if directly linked to your business, and always paid by card or bank transfer. Above a certain amount, cash payments lose their value as proof.
The most expensive mistake
It is rarely over-deducting. The usual mistake is not keeping invoices properly, or paying in cash for something that should have a bank trail. Hacienda tends to question whether you can prove an expense more than whether the expense itself makes sense.
What proves (and doesn’t prove) an expense
| Proof | Does it count for the deduction? |
|---|---|
| Full invoice in your name (with your NIF) | Yes |
| Simplified invoice (receipt) | No, except for very small amounts with no alternative |
| Bizum receipt or transfer, with no invoice | No, on its own |
| Cash payment over €1,000 | No: on top of needing the invoice, it breaks the legal cash-payment limit |
| Invoice + traceable payment (card or transfer) | Yes, the strongest combination |
Before writing off an expense
If you’re unsure about a specific expense, it’s better to ask before deducting it than to risk it being questioned later. We review it with you case by case.
Unsure about a specific expense?
Email us, no strings attached, at contacto@asesoriamadal.es and we’ll look at it together.