From 1 September 2012 – Increase in Personal Income Tax Retentions for the Self-Employed

Increase in Personal Income Tax Retentions for Self-Employed

21% until 2013   –   19% from 2014

  As from 1 September 2012 invoices issued from the self-employed need to retain 21%

 The Government has increased Personal Income Tax retentions from 15% to 19% for earnings from professional activities in addition to earned income as result of providing courses, seminars or conferences.  From 1 September 2012 until 31 December 2013 this retention will be set at 21%.

 The 15% band will only be applicable to net income paid out or credited up to 31 August 2012.  From this date onwards and during 2013 this band will increase to 21%, 6 points more, and from 2014 will fall to 19%. 

 The type of reduced retention that will be applied to new self-employed professionals will also rise from the current 7% to 9%.

 The Personal Income Tax retentions should only be applied for those self-employed professionals who sell to companies or to legal and financial entities.


ATA (Asociación de Trabajadores Autónomos – Association for the Self-Employed) calculate that between the increase in IVA and Personal Income Tax retentions, the self-employed will pay an extra 1.100 euros each year.

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