What is the difference between IVA and IRPF?

IVA is Spanish VAT — a consumption tax added on top of your price that your client pays. IRPF is an income tax withholding that applies when freelancers bill companies: the client retains a percentage (usually 15%) and pays it to the Tax Agency on your behalf. IVA goes up (you collect it), IRPF goes down (it's retained from you).

Do I need to apply IRPF if my client is outside Spain?

No. IRPF withholding only applies to transactions between Spanish-registered parties. If your client is a company or individual outside Spain, your invoice should not include IRPF. IVA may also be 0% for exports outside the EU.

What is a NIF/CIF in Spain?

NIF (Número de Identificación Fiscal) is the tax ID for individuals and freelancers in Spain, usually the DNI followed by a letter. CIF is the equivalent for companies. Both are required on invoices. Foreign individuals operating in Spain use a NIE (Número de Identidad de Extranjero).

Is FacturaPDF compliant with VeriFactu 2027?

FacturaPDF exports in FacturaE XML v3.2.1 format, which is the official standard compatible with Spain's VeriFactu electronic invoicing mandate. This export is free and available for every invoice you create.

Invoice Generator for Spain — Bill Spanish Clients

Rate	Applies to
21% — General	Most products and services, electronics, clothing, hospitality
10% — Reduced	Food (non-basic), transport, construction works on homes
4% — Super-reduced	Basic foods (bread, milk, eggs), books, medicines
0% — Exempt	Medical services, education, exports outside EU

IRPF withholding — what is it?

IRPF (Impuesto sobre la Renta de las Personas Físicas) withholding is a tax retention that applies when a Spanish freelancer (autónomo) invoices a company or another freelancer. The client withholds a percentage and pays it directly to the Spanish Tax Agency (Agencia Tributaria) on behalf of the freelancer.

7% — New freelancers in their first 3 years
15% — Standard rate for most freelancers
19% — Some specific professional categories

💡 IRPF does NOT apply when billing private individuals or clients outside Spain. FacturaPDF includes an IRPF toggle that automatically calculates the retention and shows the net amount you will receive.

VeriFactu 2027 — What foreign freelancers need to know

VeriFactu is Spain's new electronic invoicing system, mandatory from January 2027 for companies and July 2027 for freelancers. It requires invoices to be registered in a government-verified system using the FacturaE XML format.

FacturaPDF already exports invoices in FacturaE XML v3.2.1 format — the official Spanish standard compatible with VeriFactu. This makes it one of the few free tools ready for 2027 compliance.

For freelancers and businesses invoicing Spain from abroad

Most users of this tool from the US, UK, Canada and other non-EU countries fall into one of these situations:

You're a freelancer based outside Spain billing a Spanish company

Good news: when you bill a Spanish business (B2B) from outside Spain, you generally don't charge Spanish IVA. The Spanish company applies reverse charge (inversión del sujeto pasivo) and handles VAT internally. Your invoice shows 0% VAT with a note like "VAT exempt — reverse charge applies (Art. 69 Spanish VAT Act)".

IRPF withholding does NOT apply to invoices from non-Spanish providers. You simply invoice your base amount with no deductions.

You're a US company or agency working with a Spanish client

Same rule: no Spanish IVA on B2B cross-border services. Invoice in EUR or USD — though EUR is strongly preferred by Spanish accounting departments. Include your company's tax ID (EIN for US companies) and the Spanish client's NIF/CIF.

You're a digital nomad or expat living in Spain

If you're registered as an autónomo (self-employed) in Spain, you follow Spanish rules: IVA 21% on all professional services, IRPF 15% withholding for business clients, quarterly modelo 303 and 130 tax filings. FacturaPDF handles all of this automatically.

You're invoicing a Spanish individual (not a business)

Charge IVA normally (21%). No IRPF withholding — private individuals don't withhold tax. You're responsible for declaring and paying IVA yourself via quarterly filings.

Common mistakes on Spanish invoices

Missing IRPF withholding: when invoicing Spanish companies, the 15% IRPF withholding (7% in first 3 years) is mandatory. Omitting it means the client won't deduct it and you'll owe extra tax at year end.
Incorrect VAT type: Spain has three VAT rates (21%, 10%, 4%) and many exempt activities. Using the wrong rate triggers penalties from the AEAT.
Non-sequential numbering: Spanish law requires strictly sequential invoice numbering. Gaps or duplicates are a compliance issue during audits.
Missing legal exemption reference: if your service is VAT-exempt (medical, educational), you must cite the specific article of the VAT Act (e.g., "Exempt — art. 20.1.3 LIVA").
Vague service description: "Services rendered" is not sufficient. Describe exactly what service, for what period, for which project.

Frequently Asked Questions

Do I charge VAT (IVA) to my Spanish clients?+

B2B (business-to-business): If you're based outside Spain and billing a Spanish company, you generally don't charge IVA. The Spanish company applies reverse charge. Your invoice shows 0% VAT.

B2C (individual clients): If billing a private person in Spain, you normally charge IVA at 21%. Check with an accountant for your specific situation.

What is IRPF withholding and does it apply to me?+

IRPF is Spain's income tax withholding. Spanish businesses withhold 15% (or 7% for your first 2 years as autónomo) from invoices and pay it to the tax authority on your behalf. If you're based outside Spain, IRPF does NOT apply to your invoices. It only applies to Spanish autónomos billing Spanish businesses.

Can I invoice in USD or do I have to use EUR?+

Technically you can invoice in any currency, but Spanish accounting departments strongly prefer EUR. If you invoice in USD, the client needs to convert at the official exchange rate for their accounts. FacturaPDF lets you select any currency — just note that IVA calculations are always shown in the invoice currency.

Are PDF invoices legally valid in Spain?+

Yes. PDF invoices are fully valid in Spain as long as they include all mandatory fields (NIF, invoice number, IVA breakdown, dates). The mandatory electronic invoice (VeriFactu/XML FacturaE) won't apply to most freelancers until July 2027. Until then, PDF invoices are completely sufficient.

What NIF/CIF do I put on the invoice if I'm not Spanish?+

As a non-Spanish provider: use your country's equivalent tax ID (EIN for US companies, UTR for UK, VAT number for EU businesses). If you have a Spanish NIE (foreigner ID), use that. The Spanish client needs your tax ID to deduct the expense. If you don't have any Spanish tax ID, include your home country's ID with a note of the country.

Free Invoice Generator for Spain

Create your Spain invoice now

Spanish invoice requirements

IVA (Spanish VAT) Rates 2026