Declare international-client income as a freelancer in Spain

Working with clients across borders can be exciting and rewarding, especially when you’re nestled into the heart of sunny Spain.

But it also comes with important tax responsibilities. If you’re wondering how to declare income from international clients as a freelancer in Spain, you’re not alone. Many autónomos (self-employed professionals) in Spain have questions about registering properly, invoicing overseas customers, managing different currencies, and reporting all that income to Hacienda (the Spanish Tax Agency). 

This comprehensive guide will walk you through everything you need to know, from whether you have to register as an autónomo, to how to handle VAT for EU vs non-EU clients, deal with currency conversion, file the right tax forms (Modelo 303, 349, 130, 100), and even avoid double taxation. By the end, you’ll have a clear roadmap for staying compliant as a freelancer in Spain while declaring international income…

…and we’ll show how tools like Xolo can make all the difference.

Do you need to register as an autónomo to invoice international clients?

In Spain, registration as an autónomo (freelancer) is generally required if you plan to invoice clients regularly––regardless of whether those clients are in Spain or abroad. 

Legally, anyone conducting ongoing economic activities should be registered both with Social Security and the Tax Agency. In fact, it’s “necessary to be registered as a professional autónomo, no matter where your clients are.” This means even if all your customers are overseas, you are still expected to darse de alta (sign up) as self-employed in Spain.

Registering as an autónomo involves two key steps:

• Social Security (RETA) registration: You must enroll in the Régimen Especial de Trabajadores Autónomos (Special Regime for Self-Employed Workers). This is where you start paying your monthly social security contributions, which we’ll cover more later.
• Tax Agency census registration: You also need to register in the Censo de Empresarios (Business Census) of the Spanish Tax Agency by submitting Modelo 036 or 037 (a simplified version). This notifies Hacienda about your freelance activity and important details like your business address and the types of services you offer.

What if you don’t register? Some new freelancers hope they can skip registration if their client is abroad, but this is risky. Without being registered, you cannot legally issue official invoices, and you won’t be able to declare your earnings properly. Moreover, Spanish tax law doesn’t really have a “small earnings” exemption for skipping autónomo registration (the oft-mentioned earnings threshold is a gray area at best). 

To stay on the safe side, if you plan to invoice any client (domestic or international) on a regular basis, you should register as autónomo. Not only does this keep you compliant, it also gives you access to benefits like healthcare and future pensions through social security.

Quick example: Ana is a graphic designer based in Madrid who got a one-time project with a UK client. Even for a single project, if Ana is carrying on a freelance business, she should register as autónomo before invoicing the client. This ensures her invoice is valid and she can declare the income in Spain without issues.

How to invoice international clients in Spain (EU vs non-EU)

Once you’re registered, the next step is correctly invoicing your international clients. Invoicing foreign customers isn’t drastically different from invoicing Spanish ones––you still need to include all the usual invoice details (your info, client info, description of work, dates, amount, invoice number, etc.). However, one big question is whether to charge VAT (IVA) on these invoices. The answer depends on where your client is located and their tax status (business or consumer), especially for EU clients.

Let’s break down the invoicing rules for EU and non-EU clients in full:

Invoicing EU Clients (Within the European Union)

For EU clients, there’s a separate category depending on whether they’re using a VAT number or not. The differences for invoicing are quite clear. 

B2B (business clients with VAT number)

If your client is a business in another EU country and they provide a valid VAT number (NIF-IVA intracomunitario), you typically do not charge Spanish VAT on your invoice. This is because of the reverse charge mechanism for intra-community services. Your service is considered an “intra-community supply” which is exempt from IVA in Spain and the client will self-account for VAT in their country. 

On the invoice, you should note that the service is exempt under EU reverse-charge rules. For example, you might add a line like “IVA exento según Art. 196 Directiva 2006/112/CE (Inversión del sujeto pasivo)”. Remember that both you and the client need to be registered in the VIES/ROI system (more on ROI below) to apply this rule. Even though you don’t charge VAT, you must report the sale in your quarterly VAT return (Modelo 303) and annual summary, and also list it in Modelo 349 (EU transactions report). We have more detailed information on this in our blog here.

Let’s run through an example: Suppose you’re a Spanish freelance developer invoicing a French company with a valid EU VAT number for €1,000 of services. You would issue the invoice for €1,000 with 0% VAT, indicating a reverse charge. The French company will handle the VAT on their side. You will include that €1,000 in your Modelo 303 as an exempt intra-EU service and also declare it in Modelo 349 for that quarter. No IVA is collected, but it’s fully reported to Hacienda.

B2C (individual clients or businesses without a VAT number)

If your EU client is an individual (or a business that isn’t VAT-registered), the transaction is generally treated like a domestic sale. That means you do charge Spanish VAT on your invoice, at the usual rate (21% for most services). For VAT purposes, the “place of supply” for services to a non-business in the EU is considered Spain (your home country) in most cases. 

As one guide analogously puts it, you charge IVA “like a restaurant charging a tourist, regardless of where they’re from”. So if you design a website for a private client in Germany, and they don’t have a VAT number, you would add IVA to your invoice just as you would for a Spanish client. You will declare the collected IVA in your Modelo 303 for that quarter. 

(Note: Certain digital services sold B2C [business to consumer] in the EU have special VAT rules under the OSS scheme, but that’s beyond our scope here).

Registering as an intra-community operator (ROI): 

If you plan to work frequently with EU business clients, it’s highly recommended to register in the ROI (Registro de Operadores Intracomunitarios) to obtain an EU VAT number (your NIF prefixed with “ES”). You do this via Modelo 036 when registering or updating your details. 

Being in ROI enables you to invoice EU businesses without charging VAT. Ask your EU clients for their VAT ID as well. If both of you are in the system, the invoice is without VAT. Read more about this in our blog here. Keep in mind that getting on the ROI is not automatic––the Tax Agency may review your application (they sometimes ask for proof of why you need an EU VAT number, such as contracts or invoices). Once you’re approved, remember that any quarter you have intra-EU sales, you must file Modelo 349 to inform Hacienda of the transaction.

Invoicing non-EU Clients (outside the European Union)

Great news! For clients outside the EU, you do not charge Spanish VAT at all. 

Services provided to a customer outside the EU are considered an “export of services” and are not subject to IVA in Spain. Your invoice will simply have 0% VAT (you can note “operación no sujeta a IVA––cliente no establecido en la UE”). This applies whether the client is a company or an individual. However––and this is important––you still need to declare the income in your tax returns. 

In your quarterly VAT form (Modelo 303), there is a section to report non-subject or exempt sales at 0%. You’ll include the amount of those non-EU invoices there (so Hacienda knows about them, even though they didn’t generate tax). They will also be part of your annual VAT summary (Modelo 390). No Modelo 349 is required for purely non-EU sales.

Let’s run through another example: Juan, a freelance consultant in Barcelona, provides consulting services to a client in the USA for $5,000. He invoices the client $5,000 with no VAT added. He should convert that $5,000 to euros (let’s say it’s €4,600 on the invoice date) for his records. In his quarterly Modelo 303, Juan will report €4,600 as an exempt export of services (0% IVA). He’ll also include the €4,600 revenue in his income tax forms (Modelo 130/100). The U.S. client simply pays the $5,000 with no tax deducted (assuming proper paperwork like a W-8BEN, they won’t withhold US tax either).

What information must your invoices include? 

For any client, domestic or international, your invoice should contain all legally required details. 

It’s almost certain that each invoice you generate will need your:

• Full name (or business name)
• NIF and address 
• Client’s name, address and tax ID (for EU clients, their VAT number is important)
• Invoice number and date
• Description of the service
• Amount and currency
• and the VAT applied (if any). If no VAT is charged because of an EU or non-EU scenario, state the reason (e.g., “IVA no aplicable - cliente intracomunitario con VAT ID” or “IVA no sujeto - prestación de servicios a país tercero”). 

Having clear, complete invoices will support your declarations later and is just good professional practice.

Pro Tip: Creating separate invoice templates for different client types can help. For example, you might have one template that automatically applies 21% IVA for Spanish/EU consumer clients, another that shows 0% IVA with a note for EU B2B clients, and another for non-EU clients. This reduces errors. 

Xolo’s platform can actually handle this for you––allowing you to define client profiles (Spanish, EU, or outside EU) so that the correct VAT treatment is applied every time, preventing mistakes and saving you the end-of-quarter headaches.

Currency exchange considerations for foreign income

When working with international clients, it’s important to consider how you’ll handle different currencies. 

You might be invoicing a client in the United States in USD, or a UK client in GBP. Invoicing in a foreign currency is perfectly legal––the Spanish Tax Agency accepts invoices in any currency as long as you include the currency clearly. The key point to remember is that for Spanish tax declarations, you must convert all amounts to euros. Your taxes (VAT, income tax, etc.) will always be calculated in EUR, so you need a consistent method for currency conversion.

How do you convert foreign currency to euros for tax purposes? 

The typical approach is to use the official exchange rate on the date of the invoice or payment. Many freelancers use the European Central Bank (ECB) reference rates or the Bank of Spain’s published rates. The law doesn’t mandate one specific source for everyday freelance income, but it should be a reasonable market rate. 

It’s a solid practice to note the rate you used and the date. In fact, if you receive the payment into a Spanish bank account, often the bank will do the conversion for you automatically at their rate. If the money is paid into an online account (like Wise/Payoneer in USD), you should use the rate on the date you transfer or the date you issue the invoice, and be consistent. For example, guidance from Spanish accounting experts suggests converting, say, $2,000 received on July 1 to euros using the exchange rate of that day and recording the euro amount.

Recordkeeping tip: Keep documentation of how you arrived at the euro value––whether it’s a bank statement showing the converted amount or a screenshot of the exchange rate on the invoice date. This will back up your figures in case of any question. Remember that your quarterly and annual tax forms must be in euros, so you’ll be translating any USD/GBP invoices to EUR in your accounting.

Multi-currency invoicing made easy for freelancers

Using an invoicing tool can simplify currency issues. For instance, Xolo’s platform supports multi-currency invoicing so you can bill your client in their preferred currency (USD, GBP, etc.), and the system will automatically record the equivalent amount in EUR using the latest ECB exchange rates. 

This means when it’s time to file taxes, your income is already tallied in euros (with accurate, official conversion rates) without manual calculation errors. It also displays both amounts on the invoice if needed, for an added touch of transparency. By having the conversion done for you, it ensures you report the correct euro amount to Hacienda every time.

Handling exchange rate fluctuations: One challenge with foreign currency is that exchange rates fluctuate. If you invoice $1,000 when €1 = $1.10, you expect about €909. If by the time the money arrives the rate has changed slightly, don’t worry––minor differences can be accounted for. 

The simplest method, if you’re on cash accounting (criterio de caja), is to use the rate on the payment date. If you operate on invoice dates (accrual basis), use the invoice date’s rate for declaration, and any difference at payment can be recorded as a small exchange gain or loss in your bookkeeping. The amounts are usually small for freelancers and don’t affect VAT (VAT is declared on the euro amount at invoice time for accrual basis).

In summary, make sure no matter what currency you charge, Hacienda sees all your income reported in euros. Convert using a reliable rate source, and consider leveraging software (like Xolo’s invoicing tool with automatic ECB rates) to eliminate the hassle.

Reporting international income on Spanish tax returns (Modelo 303, 349, 130, 100)

Declaring your income from international clients in Spain involves a few different tax forms throughout the year. Don’t let the alphabet soup of model numbers intimidate you: We’ll break down the key obligations:

• Modelo 303 (Quarterly VAT Return): This is the form where you report your VAT transactions every quarter (due by the 20th of the month after each quarter, e.g., April 20 for Q1). Even if all your sales were outside Spain and you didn’t charge any VAT, you still need to file Modelo 303 to declare those operations. 

How do international invoices show up here?

• For EU B2B services (no VAT charged) and non-EU services (no VAT), you will include the amounts in the section for “operaciones no sujetas o con inversión del sujeto pasivo” at 0% or exempt. This tells Hacienda, “I had X amount of sales that were outside the scope of Spanish VAT.” For example, as noted earlier, an invoice to a EU business or US client goes here at 0%.
• For EU B2C services where you did charge Spanish VAT, those sales go into the normal VAT taxable sales section. You’ll add the IVA from those to your payable tax. (Fortunately, EU B2C for services is less common unless you have individual clients; many freelancers work B2B.)
• Input VAT: Also remember if you had any Spanish expenses with VAT (like local purchases for your business), you can deduct those as usual. That part doesn’t change with international income, but it can reduce the VAT you have to pay or generate a refund if you charge no VAT on sales.
  At the end of filling Modelo 303, you’ll either have an amount to pay (if VAT on sales minus VAT on expenses is positive) or usually zero (if you charged no VAT and perhaps had some deductible VAT on expenses – in which case you might carry a credit forward or request a refund).

• Modelo 349 (Quarterly EU Operations Listing): This is an informative declaration listing your EU clients and the amount transacted, required only if you did intra-community operations. If in a given quarter you invoiced any EU business client (with VAT) for services, you need to submit Modelo 349 for that quarter. In it, you’ll provide each client’s VAT number and the total amount of sales to them. For example, if you had two EU clients, you’ll list each with the amount you invoiced. The total should match what you declared in Modelo 303 as exempt EU sales. Modelo 349 has the same quarterly deadlines as 303. (If you have a lot of EU business, it can be monthly, but most freelancers will do it quarterly or even annually if below certain thresholds). If a quarter passes with no EU B2B sales, you don’t need to file 349 for that quarter. But ensure you do file it for any quarter you applied for that VAT exemption. This cross-checks with your clients’ filings in their countries.
  
  
• Modelo 130 (Quarterly Income Tax Prepayment): Unlike VAT, which depends on the location of your clients, income tax (IRPF) is global – you are taxed in Spain on your freelance profits regardless of client location, because you’re a Spanish tax resident. For freelancers, Spain requires quarterly advanced payments of income tax via Modelo 130 (unless 70% or more of your income had Spanish withholding, which in the case of only international clients, it hasn’t). Modelo 130 is basically where you pay your income tax in installments each quarter. You calculate 20% of your net earnings for the quarter (income minus deductible business expenses) and pay that to Hacienda. Since foreign clients do not withhold any Spanish IRPF on your invoices (unlike some Spanish clients who might retain a 15% and pay it on your behalf), you’ll likely be paying the full 20% each quarter. This prepayment is like a down payment on your final income tax. If you had any Spanish client that did withhold (retención) on an invoice, you subtract that amount in the 130 form; but with only international clients, there’s nothing to subtract, so 20% of net profit is due.
  Example: Laura earned €10,000 from various US and EU clients in Q1, and had €2,000 of deductible expenses (equipment, software, coworking). Her net profit is €8,000. She would pay €1,600 (20% of €8k) in Modelo 130 for Q1. This payment will count toward her final tax bill for the year.
  
  
• Modelo 100 (Annual Income Tax Declaration, “La Renta”): Each spring, you will file your annual income tax return as an individual, which is Modelo 100. Here you report all your income for the previous year, including your freelance earnings (domestic and international). You’ll apply any deductions or allowances and calculate your final IRPF (personal income tax) due. The quarterly 130 payments you made will be credited against the final amount. If you overpaid during the year, you get a refund; if you underpaid, you pay the difference. All the income from international clients must be included in your Modelo 100 just like any other income.
  
  One thing to watch for on the annual return is if you paid any foreign taxes on the income (which sometimes happens if, say, a client mistakenly withholds foreign tax or you temporarily worked abroad). Thanks to double taxation treaties (explained more below), you can usually claim a credit or exemption so that you’re not taxed twice on the same income. In the Modelo 100, there’s a section for “deducción por doble imposición internacional” (foreign tax credit) where you would declare taxes paid abroad on that income, if applicable, to reduce your Spanish tax accordingly. We’ll elaborate in the next section.
  
  
• Modelo 390 (Annual VAT Summary): This form is an annual summary of all the VAT info you reported in the four quarterly Modelo 303 filings. It’s usually due in January. It’s not a payment form, just a recap. If you’ve been diligent in your quarterly 303s, the 390 is straightforward. You total up your yearly figures: for example, €X of domestic taxable sales, €Y of EU-exempt sales, €Z of non-EU exports, etc., and corresponding VAT. If you had international client income, you will have entries for exempt exports or such in the 390. Many freelancers who have a tax advisor or use Xolo might have this prepared for them. Note: Starting 2023, if your annual turnover is below a certain threshold and you file 303s, the 390 may not be required separately (as the quarterly forms became more detailed), but it’s still commonly filed.
  
  

In short, declaring your foreign-sourced freelance income involves the same forms as any freelancer in Spain, with a few extras for international transactions. You’ll do your quarterly IVA and IRPF forms, adding any needed info about foreign client revenue, and then your annual income tax and VAT summaries. It might seem like a lot of paperwork, but it becomes routine––especially with good records or by using an accounting service.

How Xolo helps with compliance: Xolo’s all-in-one accounting service is designed for freelancers in Spain who want to simplify these obligations. The platform can automatically generate your quarterly Modelo 303 and 349 reports based on the invoices you issue (since it knows which were EU, non-EU, etc.), and compute your Modelo 130 payment by tracking your income and expenses. By using software that’s up-to-date with Spanish tax rules, you reduce the chance of mistakes (like forgetting to declare a non-EU invoice or misreporting a VAT-exempt sale). 

At the end of the year, Xolo can help prepare your Modelo 100 and 390, taking the drudgery out of tax time so you can focus on your business.

Social security contributions for foreign client work

Being self-employed in Spain doesn’t just mean taxes––you must also contribute to Social Security (Seguridad Social) through the autónomo system. 

This is often referred to as the “cuota de autónomo” that you pay monthly. It’s important to emphasize that working with foreign clients does not exempt you from Spanish social security. If you’re a Spanish resident freelancer, as soon as you register as autónomo you will need to start paying into RETA (the self-employed workers’ scheme), regardless of whether your clients are in Madrid or Manhattan.

How much are the contributions? 

The social security fee is not directly tied to your client’s location; it’s based on your chosen contribution base (which historically was chosen freely, but since 2023 Spain introduced a system where your cuota is gradually adjusted based on your income range). 

Typically, new freelancers can benefit from a reduced flat rate (tarifa plana, which has been around €80/month in the first year, though these rules evolve). Eventually, you pay the standard rate, which could be around €300/month or more, depending on your earnings. In 2023 a new scaled system means if your income is lower, you pay a bit less, and if higher, you pay more, but it’s still a fixed monthly fee in bands.

Why pay this if you have no Spanish clients? 

Because Spanish Social Security covers your health insurance, pension and other benefits while you reside in Spain. By contributing, you ensure you have access to public healthcare and that the years you work as a freelancer count toward your retirement. All freelancers in Spain are in the same system. Even if 100% of your clients are abroad, you are still covered by Spain’s social security as long as you live and work from Spain. 

Think of social security as a baseline cost of being self-employed in Spain.

One scenario to note is if you temporarily work from another country (say you go abroad for a few months but remain a Spanish resident). In that case, there are international agreements and EU regulations to avoid double-paying social security too. For example, within the EU, a portable document (like the A1 certificate) can excuse you from paying in two countries at once. But generally, if your business base is Spain, you stay in the Spanish system.

When budgeting for your freelance venture with international clients, always include your monthly autónomo quota in your calculations. It’s independent of your client invoices (you pay it even in months with no income, which is why the flat rate relief is helpful early on). On the bright side, the social security fee is tax-deductible as a business expense for income tax purposes, which softens the worry around tax season.

Finally, remember to keep up with any changes––Spain sometimes updates its autónomo contribution rules. Xolo’s platform or your asesor can inform you if your cuota changes based on new income tramos (ranges). 

Our key takeaway is: being an autónomo with foreign clients still means being an autónomo in Spain, with all the same social security obligations.

Avoiding double taxation on the same income

What happens if your client’s country also wants a slice of your earnings? This is where double taxation treaties come into play. 

Spain has agreements with many countries to prevent you from being taxed twice on the same income. As a Spanish tax resident, you should pay tax in Spain on your worldwide income––but if you already paid some tax abroad on that income, a treaty can ensure you don’t pay the full amount again in Spain.

When could double taxation occur? 

In many typical freelance scenarios, it might not!

For example, if you provide services to a US company and you do all the work from Spain, the US company usually will not withhold any US taxes (especially if you file a W-8BEN as a foreign contractor). So you just pay tax in Spain. No double taxation issue there. But consider other cases: maybe you did a short contract on-site in another country and that country taxed your earnings, or perhaps a client in a country without a clear process did withhold some tax by default. Or imagine you have to register for a tax number abroad and pay tax there due to the nature of work. In such cases, without relief, you’d pay tax abroad and still owe full tax in Spain.

Tax treaties to the rescue: Spain has dozens of convenios de doble imposición (double taxation agreements) with countries worldwide––from all EU countries, UK, USA, Canada, to many others. These treaties outline how income is taxed to ensure fairness. Typically, two methods are used:

• Exemption method: Spain can agree to exempt the income that was taxed abroad from Spanish tax. In other words, Spain simply doesn’t include that portion of income in your taxable base. This is less common for personal service income, but it might apply in some cases.
• Imputation (credit) method: This is more common. Spain will tax your worldwide income but allow you to subtract a credit for the tax you paid in the other country. Essentially, you pay up to the higher of the two countries’ tax rates. For example, if you paid 10% tax abroad on that income and Spain’s tax on the same income would be 15%, you’d pay the remaining 5% to Spain. If the foreign tax was higher than Spain’s, you might not pay any extra in Spain (you won’t get a refund for the difference, but at least you’re not double taxed).

We also explain more about the above in this blog post here. 

Each treaty is different, but most follow one of these approaches. Let’s illustrate with a quick example: Say you are a Spanish freelancer who did a project in Germany and earned €5,000 there, and Germany taxed you €500 at source. Spain and Germany have a tax treaty. When you do your Spanish “renta”, you’ll declare that €5,000 as income, but you can claim the €500 foreign tax credit. If the Spanish tax on €5,000 would be €750, you only pay the additional €250. If Spain’s tax would be less than €500, you’d pay nothing extra (Spain would be exempt in effect). This way, you pay roughly the same total as you would have if you only paid tax in the higher-tax country, not double.

To benefit from treaties, you may need to provide proof of the tax paid abroad (like a withholding certificate) and fill out the foreign tax credit section on Modelo 100. It’s a good idea to consult a tax advisor for specific situations, because the rules can vary by country and income type.

Something important to note: If you anticipate a client might withhold foreign taxes, discuss it beforehand. Sometimes providing a form or proof that you’re a Spanish resident (and that a treaty applies) can prevent the withholding in the first place. For instance, U.S. clients accept a W-8BEN form so they don’t withhold 30% for the IRS on payments to foreign contractors.

Keeping good records of foreign taxes paid 

As mentioned in the previous section, it’s important to maintain documentation of any tax that was deducted by a client or paid abroad. You’ll need this to justify the credit. The importance of solid recordkeeping cannot be overstated here: “It is important that you maintain good records of your income and expenses to justify to your home country’s tax authorities the taxes you’ve already paid abroad”. This principle applies not just to double taxation, but to all aspects of your freelance finances.

Spain’s tax authority is generally aware of treaty provisions, but it’s up to you to claim the benefit. The default in your Modelo 100 is to tax everything, so you must proactively fill in the double taxation relief section if applicable. If done correctly, you’ll ensure that while you declare all your international income in Spain, you won’t be unfairly taxed twice on it.

Keep meticulous records (invoices, payments, and declarations)

Dealing with multiple clients, possibly across several countries, and various tax forms means there’s more paperwork to juggle. 

Good recordkeeping is your best friend when declaring income from your international clients. This isn’t the glamorous part of freelancing, but it’s absolutely crucial for both compliance and peace of mind––and Xolo can help.

Here’s what to keep track of:

• All invoices issued: Save copies of every invoice you send to international clients (and domestic ones too). Make sure they are sequentially numbered and dated. Include notes on them about VAT treatment (e.g., “IVA 0% – servicio intracomunitario” or similar) so it’s clear why you did or didn’t charge VAT. If you use an invoicing platform like Xolo, your invoices are stored and organized automatically, which helps.
• Proof of payments received: Match each invoice with a payment. For bank transfers, keep the bank statements or transaction records showing the incoming amount and date. For platforms (PayPal, Stripe, etc.), download reports of payments. This not only proves that you earned what you invoiced, but also helps in currency conversion records (the payment might show the currency and conversion to EUR).
• Exchange rate documentation: If you invoice in a foreign currency, note the exchange rate you used to convert to EUR for your books. This could be a printout from the ECB website on that date or the actual conversion rate your bank gave you. It demonstrates how you derived the euro figure that you declare as income.
• Expense receipts: Don’t forget to keep receipts for any business expenses, as usual. While not directly related to international income, your expenses (travel, software, professional services, etc.) will reduce your taxable profit on Modelo 130/100. If any expenses are related to servicing a foreign client (e.g., you bought a plane ticket to meet an EU client, or incurred currency conversion fees), keep those records as well––they might be deductible.
• Tax declarations (Modelo 303, 349, 130, 100, etc.): Keep copies of all your submitted tax forms and the calculations/workings you did to arrive at the numbers. Having a file with your quarterly forms and annual returns will be very handy if there’s ever a discrepancy or if you just want to review last year’s numbers. It’s also useful if you switch accountants or platforms; you can provide your history easily.
• Communications with clients about tax matters: If you had any written agreement or emails with a client regarding taxes (for instance, them providing their VAT number, or confirmation that no tax was withheld on their end), archive those. They can back you up if there’s confusion later (say, an EU client’s VAT number turned out invalid ––you’d want proof they gave it to you in good faith).

Spain’s tax law generally requires you to keep records for at least 4 years, since that’s the statute of limitations for tax audits. In some cases (like if you carry losses forward, or for certain invoices) you might keep them longer, but 4 years is the minimum. In practice, many freelancers keep digital archives indefinitely these days.

Staying organized with documentation might seem tedious quarterly, but it pays off. If Hacienda ever raises a question about an entry (for example, asking for evidence of a large expense or why you didn’t charge VAT on X invoice), you can swiftly provide the supporting documents. This not only resolves issues faster but also shows auditors that you’re a conscientious professional, often making them less inquisitive.

Finally, leveraging a solution like Xolo can significantly ease the recordkeeping burden. The platform will store all your invoices and expenses in one place, automatically handle the exchange rate conversions for you, and keep a ledger of your VAT and income tax calculations. So when it’s time to declare your income, you essentially have a neat package of all necessary records ready to go. No frantic shoebox digging or scrolling through old emails to find that one invoice––stay organized.

Simplifying your international freelance finances––with Xolo!

Navigating the ins-and-outs of declaring income from international clients in Spain may seem complex at first, but with the right knowledge (and tools) at your disposal, it becomes a routine part of your business. 

We’ve covered how crucial it is to register as an autónomo, even for foreign gigs, and to invoice correctly depending on your client’s location. You now know when to charge VAT (and when not to), how to manage currency conversions to keep your accounting straight, and which tax forms to file each quarter and year to report your global freelance income. We’ve even touched on these necessary social security contributions and how double taxation treaties protect you from paying tax twice on the same euro. 

Being diligent is essential––but you don’t have to do it all alone!

Xolo is here to make this process easier for freelancers operating in (and out) of Spain. As a comprehensive platform tailored for solo business owners, Xolo can automate your multi-currency invoicing (with automatic ECB exchange rates applied), to ensure your invoices meet Spanish requirements, while even taking care of your quarterly filings. 

Create an invoice for your client in New York with Xolo in just a few clicks and… Xolo will convert it to euros, log it for your Modelo 303/130, and keep everything compliant from head-to-toe. Come tax time, you’ll have a full report ready to declare. Plus, with expert accountants available, you can get guidance on tricky issues like VAT exemptions or treaty benefits.

Simplify your international freelance finances in minutes. Explore the Xolo platform and see how it can save you time, keep you compliant, and give you peace-of-mind when declaring your income from international clients in Spain.