<\/span><\/h4>\n\n\n\nFirst of all, it is necessary to be clear about what a deductible expense is. This is fundamental for tax purposes<\/strong>. A deductible expense is considered to be anything that can be subtracted from gross income to obtain the real profit<\/strong> of an economic activity when paying taxes. These expenses must be supported by the corresponding invoices and meet a series of requirements<\/strong>.<\/strong><\/p>\n\n\n\n<\/span>Requirements that expenses must meet to be deductible<\/span><\/h4>\n\n\n\nIn order to treat an expense as deductible, the following<\/strong> must be met:<\/strong><\/p>\n\n\n\n\nBe substantiable.<\/strong> <\/strong>It must be an expense that can be proven beyond any doubt. For this, it is mandatory to have a full tax invoice<\/strong> (including the recipient’s tax details); a receipt or simplified invoice is not sufficient.<\/li>\n\n\n\nHave been paid by the taxable person.<\/strong> <\/strong>The taxpayer must be able to prove that they have paid the invoices with their own resources, as presenting invoices paid by others is grounds for a penalty.<\/li>\n\n\n\nHave a direct relationship with the activity.<\/strong> <\/strong>To meet this requirement, the Tax Agency applies the principle of causality. That is, the expense must be necessary to obtain income.<\/li>\n\n\n\nBe within the correct dates.<\/strong> <\/strong>In order to deduct the expense, it must have been incurred in the tax period being declared.<\/li>\n\n\n\nBe recorded.<\/strong> <\/strong>Deductible expenses must have been registered and appear in the account books.<\/li>\n<\/ul>\n\n\n\n<\/span>Types of deductible expenses<\/span><\/h4>\n\n\n\nBefore specifying and going fully into all the expenses that can be deducted, let’s differentiate<\/strong> between companies and the self-employed, as they have some differences.<\/p>\n\n\n\n<\/span>Deductible expenses for companies<\/span><\/h5>\n\n\n\nThere are many types of companies with very diverse activities, so the list of deductible expenses can be very long. However, the most common deductible expenses<\/strong> for companies are the following:<\/p>\n\n\n\n\nSalaries and wages.<\/strong> This includes employee salaries, Social Security payments, and other personnel expenses.<\/li>\n\n\n\nOperating expenses.<\/strong> Among others, this section includes purchases of merchandise, raw and\/or auxiliary materials, as well as other acquisitions of goods made from third parties, such as fuel or office supplies.<\/li>\n\n\n\nLeases and royalties<\/strong>.<\/strong> This section includes rental expenses, technical assistance costs, and leasing fees, among others.<\/li>\n\n\n\nReparations and conservation<\/strong> <\/strong>of material goods, provided they do not involve an improvement, in which case it would be considered an investment amortizable over several years.<\/li>\n\n\n\nServices offered by independent professionals,<\/strong> such as lawyers, auditors, and notaries, and other external services, such as water, electricity, telephone, etc.<\/li>\n\n\n\nTax-deductible taxes.<\/strong> Personal income tax (IRPF) is not included, and, generally, neither is VAT (as it is neutral for the company), unless the activity is exempt and VAT becomes a cost. IAE (Local Business Tax) or IBI (Property Tax) is deductible. Although most self-employed and micro-enterprises are exempt from paying the IAE, as it is only mandatory for entities that invoice more than \u20ac1,000,000 per year.<\/li>\n\n\n\nLosses due to debtor insolvency<\/strong>, provided that legal requirements regarding the age of the debt or declaration of bankruptcy are met.<\/li>\n\n\n\nFinancial expenses.<\/strong> These are the expenses incurred to obtain financing, such as interest on loans and credits, management expenses for discounting commercial bills, late payment interest with the Treasury, or surcharges for deferring debt payments.<\/li>\n<\/ul>\n\n\n\nIn addition to these common expenses, others that are less frequent can also be included, such as the purchase of books, magazine subscriptions, fees for business associations, health insurance premiums, and private medical assistance.<\/p>\n\n\n\n
<\/span>Deductible expenses for self-employed workers<\/span><\/h5>\n\n\n\nSelf-employed professionals must take special care to ensure compliance with the criteria of necessity, causality, and sufficient justification<\/strong>, since it is possible to confuse personal expenses with professional ones.<\/p>\n\n\n\nAlthough there is a wide range of deductible expenses, the most common deductible expenses for self-employed individuals <\/strong>are the following:<\/p>\n\n\n\n\nOffice, warehouse, or point of sale rental:<\/strong> Expenses derived from the lease of the physical space where the business activity takes place.<\/li>\n\n\n\n30% of the proportional part of utilities:<\/strong> Deduction applied to the electricity, water, gas, and internet bill according to the square meters of the home assigned to the activity. Clarify that 30% is applied to the proportion of square meters unless a different proportion can be proven (which is very difficult without independent meters). The calculation is: (Office square meters \/ Total home square meters) x 30% x Utility bill total<\/em>.<\/li>\n\n\n\nBuilding expenses:<\/strong> Includes taxes and fees linked to the property, such as property tax (IBI), building service charges, or garbage collection fees.<\/li>\n\n\n\nTelephones or internet connections:<\/strong> Costs for mobile and landline services necessary for commercial and operational communication.<\/li>\n\n\n\nMaterials and raw materials:<\/strong> Acquisition of elements necessary for the production of goods or the provision of services.<\/li>\n\n\n\nFixed Assets:<\/strong> Includes both the purchase and repair of machinery or equipment, as well as their corresponding annual calculated depreciation.<\/li>\n\n\n\nPromotional gifts for customers:<\/strong> Expenses on advertising items intended for recruitment or loyalty, provided they are duly accredited. Add that expenses for public relations and customer service (gifts that are not strictly promotional with a logo) have a limit of 1% of the net turnover.<\/li>\n\n\n\nAdvertising and marketing expenses:<\/strong> Investments in advertising campaigns, advertisements, and brand promotion strategies.<\/li>\n\n\n\nDesign, programming, or maintenance of web pages:<\/strong> Costs related to digital presence, hosting, domains, and corporate website development.<\/li>\n\n\n\nSelf-employed social security levies (RETA):<\/strong> Monthly contributions to the Special Regime for Self-Employed Workers (RETA) of the Social Security.<\/li>\n\n\n\nAdvisory services:<\/strong> Expenses for professional services in accounting, tax, labor, or legal management linked to the business.<\/li>\n\n\n\nFinancial expenses:<\/strong> Interest on loans, credits, and management fees for discounting bills or late payments.<\/li>\n\n\n\nEmployee-related expenses:<\/strong> Include the payment of salaries, wages, Social Security contributions, and staff training.<\/li>\n\n\n\nTravel and subsistence allowances:<\/strong> Travel and meal expenses, provided there is a complete invoice and the link to a business activity day is proven. There is a limit of \u20ac26.67\/day in Spain (\u20ac48.08 if abroad) for day subsistence, and payment must be made electronically (by card) as a mandatory requirement.<\/li>\n\n\n\nVehicles and fuel:<\/strong> 50% deductible by default, unless 100% involvement in industrial activity is proven.<\/li>\n\n\n\nInput VAT:<\/strong> Deductible in Personal Income Tax (IRPF) as an increased expense value only if it has not been deducted via Form 303. This applies to those under special tax regimes (such as the Equivalence Surcharge Regime<\/strong>) or those performing exempt activities<\/strong> (e.g., healthcare or education) where VAT is not recoverable and, therefore, is added to the total cost of the expense.<\/li>\n\n\n\nHealth insurance policies:<\/strong> Private medical insurance expenses are deductible up to \u20ac500 per year for the policyholder and each member of the immediate family unit. This limit increases to \u20ac1,500 if the individual (policyholder, spouse, or children) has a legally recognized disability.<\/li>\n\n\n\nOnline tools:<\/strong> Subscriptions to software (SaaS), management applications, cloud services, and other digital tools necessary for work.<\/li>\n<\/ul>\n\n\n\nDeductible expenses are those directly related to the business activity and necessary for its operation. Furthermore, the expenses that companies and self-employed individuals can deduct differ slightly, although some very common expenses, such as rent, utilities, personnel expenses, and merchandise purchases, can be deducted in both cases<\/strong>.<\/p>\n\n\n\nIn addition, as we have seen, the line between a personal and a professional expense can be thin, and the Tax Agency’s requirements are increasingly strict<\/strong>. An error in interpreting the deductibility of utilities or vehicles can lead to unnecessary penalties.<\/p>\n\n\n\nAt Firmalex<\/strong>, we don’t just manage your accounts; we optimize<\/strong> your expense structure<\/strong> so that you pay only what is fair, always complying with current legislation. Whether you are an SME or a self-employed professional, having expert advice in Spanish, Valencian, English, and German guarantees the peace of mind your business needs.<\/p>\n\n\n\nDo you have doubts about whether an expense is deductible? Do not take risks. Contact us and secure your profitability.<\/strong><\/p>\n\n\n\n📍 Denia \u2013 Plaza del Convento, 6 – Mezzanine floor door B 📍 Valencia \u2013 Calle Creu Roja, 1 – Block 6, Floor 1, door 10 (* only by appointment)<\/p>\n\n\n\n
✉ Email: info@firmalex.com<\/a> 📞 Tel.: +34 966 421 416<\/a> \u2013 Whatsapp: +34 622 497 615<\/a><\/p>\n\n\n\nFollow us: Facebook<\/a> – LinkedIn<\/a><\/p>\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
The subject of expenses is somewhat complex, especially when it comes to knowing what can be considered a deductible expense and what cannot. There are also some differences in the expenses that self-employed individuals and companies can deduct. Let’s analyze everything in detail. What is considered a deductible expense First of all, it is necessary […]<\/p>\n","protected":false},"author":2,"featured_media":21012,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[234,210,238,242],"tags":[],"yoast_head":"\n
Most important deductible expenses - FIRMALEX<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n