What expenses can you deduct as a freelancer in 2026?

If you're a freelancer and you're not deducting expenses, you're missing a great opportunity to improve your business performance. We all know that before seeing a euro of profit, you've already paid the fee, the rent for the premises, the materials, the tools, and an endless list of services that an employee never sees on their paycheck. The tax office knows this, and that's why it allows you to subtract these expenses from your income before calculating income tax. The more you justify, the less you pay.

The effect works on two different taxes. In income tax withholdings, the expense reduces your net income and the amount you pay in the quarterly form 130. In VAT, the VAT you paid when purchasing or contracting that service reduces what you must pay to the tax office in form 303.

To apply any expense deduction, you must be taxed under direct estimation (normal or simplified). If you're on modules, you cannot deduct actual expenses.

What are deductible expenses for freelancers?

A deductible expense is one that the tax office allows you to subtract from your business income to calculate net profit. It is on this profit, not on the total amount you invoice, that income tax is applied.

The fiscal effect works differently for each tax. In income tax, the expense reduces your net income and the amount you pay in the quarterly form 130 and in the annual tax return. In VAT, the VAT borne on that expense reduces the amount you must pay to the tax office in form 303.

That an expense is deductible for income tax does not automatically mean it is also deductible for VAT: there are important cases where they differ, such as business meals or gifts to clients.

Tax regulation on deductible expenses

The regulation of deductible expenses for freelancers is mainly found in two legal texts: the Law 35/2006, of November 28, on income tax (especially articles 28 and 30), which establishes how the net income from economic activities is determined and which expenses are deductible; and the Income Tax Regulation (RD 439/2007), which develops the criteria for allocation, specific limits for certain items, and justification conditions. In terms of VAT, the reference is the Law 37/1992, of December 28, on VAT.

Alongside the regulations, the tax office's criteria as reflected in its resolutions and binding consultations are particularly important, as they determine under what specific circumstances a deduction is allowed and when it is not.

Also, the jurisprudence of the Supreme Court, which on more than one occasion has modified the criteria applied by the tax agency for not considering it in accordance with the law. The Supreme Court ruling of July 2025 on the deduction of supplies in teleworking is the most recent example.

What requirements must expenses meet to be deductible?

For the tax office to accept an expense, it must simultaneously meet these three conditions:

• Link to economic activity. The expense must be necessary to generate income or for the normal development of the business. An expense that is merely convenient or that mixes personal and professional use without justification can be rejected.

• Documentary justification. The usual requirement is a complete invoice in your name with the issuer's tax ID, detailed description, taxable base, and VAT. To deduct the VAT quota, a complete invoice is essential: a receipt is not valid. In income tax, there is a bit more flexibility for certain expenses (freelancer fees, bank charges).

• Accounting record. The expense must be recorded in your accounting books in the period it occurred, not when you receive the invoice.

Additionally, for contentious expenses like vehicles, meals, or phones, document the professional relationship. A simple note next to the invoice ("meeting with client X", "trip to site") can make a difference during an inspection.

Can I deduct expenses even if I haven't had income that quarter?

Yes. Expenses are not conditioned on the existence of income in the same period. If the result of the activity is negative, you can offset it with positive income from other periods of the same fiscal year or, if the annual result remains negative, with income from the general base in the tax return.

Can I deduct an expense if the invoice is not in my name?

In principle, no. The tax office can reject expenses with invoices issued in someone else's name (partner, family member) because it is not proven that you are the real recipient. If this happens, ask the supplier for a corrective invoice with your details. If that's not possible, that expense enters a risk zone and generally it's advisable not to deduct it.

Complete list of deductible expenses in 2026: income tax and VAT

Below are the main expenses that the tax office accepts as deductible, with their treatment in income tax and VAT and the key conditions for applying them correctly:

Special expenses: the cases that generate the most doubts with the tax office

Some expenses are technically deductible but generate more inspections than others because they depend on the degree of affectation to the activity or have specific requirements. These are the most contentious and how to apply them without problems.

Private vehicle

The vehicle is the most controversial expense. The deduction directly depends on the activity:

• 100% deduction in income tax and VAT: taxi drivers, transporters, couriers, messengers, driving schools, commercial agents, and representatives. Also mixed or industrial vehicles whose predominant use is professional and can be proven.

• Mixed use (car): in income tax, the tax office is very restrictive and rarely accepts partial deduction without conclusive proof of the professional percentage. In VAT, the law establishes a minimum affectation of 50% (art. 95.Three LIVA), with the possibility of applying a higher percentage if a higher professional use is documented.

To justify it during a possible inspection, keep a record of trips (date, origin, destination, professional reason). The same criteria apply to fuel, insurance, and vehicle repairs.

Home (teleworking)

If you work from home, before deducting any supply, you must have notified the tax office of the professional use of part of your home. This is done in form 036 when registering, indicating the square meters affected over the total. Without this notification, the tax office can reject deductions even if the calculation is correct. The accepted formula is:

Deductible expense = m² affected / total m² × 30% × supply invoice

For example, if your house is 100 m², you use 20 m² for work, and the electricity bill is €200, you can deduct: 20/100 × 30% × €200 = €12. Following the Supreme Court ruling of July 2025, the criteria for deducting supplies in teleworking have been relaxed in VAT. Consult your consultancy to apply it correctly in your 2026 tax return.

Mobile phone

If the mobile phone has mixed personal and professional use, the tax office usually accepts 50% both in income tax and VAT, applicable to both the monthly line bill and the device cost. To deduct 100%, the safest option is to have a line exclusively for professional use, separate from the personal one.

Meals and business meals

Meals with clients, suppliers, or collaborators are deductible, provided three conditions are met: electronic payment (never in cash), a complete invoice in the freelancer's name (a receipt is not valid), and a documentable professional reason.

The tax office does not allow the deduction of meals made in the freelancer's place of residence, even if there is professional activity that day. It also does not allow VAT on business meals (art. 96 LIVA).

Work clothing

Only clothing that cannot be used for ordinary purposes outside the work environment is deductible: uniforms with the company logo, legally required personal protective equipment (PPEs), and specific sector clothing (doctors, chefs, mechanics). Street clothes, even if used exclusively for work, are not deductible. The exception is for artists and entertainment professionals, where the tax office applies a more flexible criterion.

Training, congresses, and sector fairs

Training expenses are deductible when there is a direct and demonstrable relationship with the activity. The tax office accepts courses, master's degrees, and certifications linked to the sector, technical books and specialized publications, online learning platforms if the content is professional, and attendance at congresses, fairs, and sector events both as a visitor and as an exhibitor. It does not accept leisure or personal development training without a clear connection to the activity.

What expenses are not deductible for freelancers?

As a general rule, personal expenses without professional linkage or those that the tax office considers unlawful are not deductible. These are the most common cases:

• Personal expenses without linkage: daily meals, street clothes, leisure, vacation trips.

• Fines and penalties: traffic fines, tax agency penalties, late fees for late submission.

• Donations and gifts: unless they meet the requirements of the Patronage Law (deducted in quota, not as an expense).

• Gifts exceeding limits: max. €300/year per client and €50/unit.

• VAT already deducted in form 303: VAT already recovered quarterly cannot also be deducted in income tax.

• Expenses without valid proof: beyond difficult-to-justify expenses, the rest require an invoice.

• Expenses with entities in tax havens: automatically rejected.

• Rent of the main residence: not deductible even if you work from home, unless the contract expressly includes professional use with VAT on the proportional part.