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Business Self-employed workers in Spain would save 500 million euros per year with IVA tax exemptionsA study has found that the elimination of the obligation to submit periodic declarations and to keep specific accounts would imply a direct saving of 300 euros per year per worker
Wednesday, 21 January 2026, 14:58
The 770,000 self-employed workers registered in Spain could save a total of 500 million euros if they were to benefit from the IVA (Spanish tax) exemption threshold system. This calculation has been made by the national federation of self-employed workers' associations (Ata).
According to Ata, if this system is not implemented, the self-employed will continue being at a clear competitive disadvantage compared to their counterparts in other European countries that have already applied this model, such as France and Italy.
In a study released on Wednesday, the federation estimates that the elimination of the obligation to file regular IVA returns and to keep specific IVA-related accounts (software, consultancy fees, etc.) could mean a direct saving of around 25 euros per month or 300 euros per year for each self-employed person.
Added to this is the time spent on administrative tasks related to IVA. Ata has calculated that a self-employed person spends an average of two hours a month on tasks such as compiling invoices and receipts, preparing return declarations or sending documentation to the administrative office. If this time is valued at 15 euros per hour, the annual savings would amount to 360 euros, which brings the total individual benefit to 660 euros per year. If this is applied to all of 770,000 self-employed workers, the direct economic damage derived from not having an IVA franchise is 508,200,000 euros per year.
Impact on public revenues
According to Ata, the implementation of the IVA exemption system would have an estimated annual state cost of between 625 and 650 million euros at national level. This is based on the assumption that some 770,000 self-employed workers would opt for this system if they met the two basic conditions: they earn less than 85,000 euros a year and do not pay an amount of IVA that would make it more attractive to remain in the general system.
For Ata, the implementation of the IVA franchise transcends the mere adjustment to EU regulations and should be understood as a measure of fiscal equity and structural support for a group considered a key part of Spanish economy. "The Spanish state's legislative omission generates a damage of successive tract, materialised in an economic loss that is repeated and consolidated year after year while the delay in the adoption of the franchise system persists," the report concludes.