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There’s finally some welcome news for often neglected autónomos in Spain that could make a real difference both financially and day to day.

 

The government has confirmed plans to scrap IVA for self-employed workers earning under €85,000 a year, meaning hundreds of thousands of freelancers will no longer need to charge VAT on their invoices or deal with the quarterly paperwork that comes with it.

 

For many, that alone will feel like a weight lifted. Anyone who has worked as an autónomo in Spain will know how time-consuming and, at times, confusing the system can be. Removing the need to file IVA returns every three months is expected to simplify things massively, especially for those running smaller businesses or working solo.

 

According to estimates from the Association of Self-Employed Workers, around 770,000 people could benefit from the change, which works out to about 22% of all autónomos in Spain.

 

On average, that’s a saving of roughly €660 a year per person, adding up to more than €500 million across the group.

 

Beyond the money, it’s the reduced admin that will likely be the biggest win. Instead of tracking IVA on every invoice and expense, those who qualify will be able to operate with far less red tape, making it easier to focus on actually running their business.

 

It also brings Spain more into line with the rest of Europe. Until now, Spain has been the only EU country where self-employed workers had to charge and declare IVA even at relatively low income levels. In countries like France and Germany, similar exemptions have been in place for years, with different thresholds depending on the type of work they do.

 

There is one thing to keep in mind. Autónomos who opt into the scheme will still pay IVA on business expenses, but won’t be able to reclaim it. For some, especially those with higher costs, it will be worth doing the maths before deciding.

 

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