Business Expense Deductions: Who Qualifies and What You Get
Learn how business owners in Spain can reduce their taxable income by deducting professional expenses from their accounts.
Business Expense Deductions allow business owners to reduce the total amount of income they are taxed on by subtracting the costs of running their business.
Who it's for
This is available to all business owners.
What you get
You can lower your taxable income by deducting your professional expenses. This process, often called desgravación, reduces the total profit on which you are required to pay tax.
What it costs you
While there is no fee to use this method, you are required to keep all original invoices (facturas) for a period of 4 years to prove your business spending.
The catch to know
You cannot deduct every business-related cost; an expense is only deductible if it is directly related to your specific professional activity.
How to apply
- Gather all original invoices for your business costs.
- Ensure every expense is strictly related to your professional work.
- Keep these documents safe for at least 4 years.
- Report these deductions when filing your taxes through the official government portal.