Everything You Need To Know About Invoicing In Spain

Expat Tips Published: 14 March 2023 11:27 CET Updated: 02 May 2025 11:27 CET

If you're running your own business or working as a self-employed professional in Spain, invoicing — known as facturación — is not only a routine task but a legal requirement. Whether you’re a freelancer, autónomo, or SME owner, creating accurate, compliant invoices is vital for staying on the right side of the tax authorities and getting paid on time.

In this comprehensive 2025 guide, we break down everything you need to know about invoicing in Spain, including legal requirements, the various types of invoices, common mistakes, and the major changes now underway with digital invoicing laws.

What Is an Invoice in Spain and Why Does It Matter?

An invoice (factura) is a legal document that reflects a commercial transaction — it records the supply of goods or services, the amount charged, and the taxes applied. In Spain, invoices serve several key purposes:

They prove income and expenses for both buyers and sellers
They’re required to calculate and report VAT (IVA)
They help maintain accurate accounting records
They’re legally required for issuing payments between businesses

Mandatory Information on a Spanish Invoice

All invoices issued in Spain must include specific data to be legally valid. Here's what a compliant 2025 invoice should contain:

Sequential invoice number: Must follow a chronological order with no gaps
Issue date: The date the invoice is created
Supplier information: Full legal name, tax ID (NIF/NIE/CIF), and address
Client information: Full name and tax ID, required for businesses and autónomos
Detailed description of services or goods: What was provided and in what quantity
Subtotal (taxable base): The total before taxes
VAT rate and amount: Typically 21%, though 10% and 4% apply in some sectors
Total invoice amount including VAT
VAT exemption note (if applicable): Must cite the applicable article from VAT law

Digital Invoicing Requirements in 2025

Spain is currently implementing mandatory electronic invoicing (Factura Electrónica) as part of its digitalisation push. This change affects freelancers and SMEs across the country:

As of 2024, freelancers and small businesses earning over €8,000 annually must issue electronic invoices to other businesses
Invoices must be issued in Facturae XML format and submitted through government-certified platforms
Full implementation for all businesses is expected by the end of 2025 or early 2026

This means paper or PDF invoices may no longer be valid for B2B transactions in the near future. It's recommended that you register with the Agencia Tributaria’s digital systems and begin transitioning to e-invoicing software such as Quipu, Billin, Contasimple or hold an electronic signature for validation.

Official source: Agencia Tributaria.

Types of Invoices in Spain

1. Factura Completa (Complete Invoice)
This is the standard format used for most transactions. It includes full details of the buyer and seller, a breakdown of tax, and line-by-line details of services or goods.

2. Factura Simplificada (Simplified Invoice)
Used for sales under €400 (or €3,000 in specific sectors like retail or hospitality). These invoices do not need to show the client’s full tax info and are common in over-the-counter transactions.

3. Factura Proforma (Proforma Invoice)
This is not a real invoice, but a quote or offer sent in advance. It has no tax validity and is often used in international trade or to confirm terms before billing.

4. Factura Rectificativa (Corrective Invoice)
Issued to fix a mistake in a previously sent invoice (e.g. incorrect tax rate or customer info). It must reference the original invoice number and explain the correction clearly.

5. Factura Recapitulativa (Summary Invoice)
Groups several transactions between the same parties into a single invoice for a specific time period (e.g. weekly or monthly). Useful for businesses with recurring clients.

When Must You Issue an Invoice?

You must issue the invoice by the 16th of the month following the delivery of goods or services
For advance payments, an invoice must be issued when the payment is received
Invoices must be archived for at least 4 years in case of inspection

VAT (IVA) on Spanish Invoices

Spain has three VAT rates:

21% – General rate for most goods and services
10% – Reduced rate (e.g. hotel accommodation, some food)
4% – Super-reduced rate (e.g. books, medicines)

If you're selling to VAT-registered businesses in other EU countries, reverse charge rules may apply, meaning no VAT is charged but you must clearly reference the exemption clause (e.g. Art. 25 LIVA). For exports outside the EU, VAT is generally not applied but reporting obligations remain.

How to Issue an Invoice Step-by-Step

Create the invoice using software (Word, Excel, Quipu, etc.)
Apply sequential invoice number and today’s date
Input your and your client's fiscal information
List the services/goods clearly, with unit prices and quantities
Calculate subtotal, VAT, and total
Send the invoice by email, e-invoicing portal, or certified delivery
Save a copy (digitally or physically) for at least 4 years

Common Mistakes to Avoid

Skipping the VAT breakdown
Not listing your or the client’s tax ID (for full invoices)
Failing to use a sequential invoice number
Incorrect VAT application (e.g. applying 21% when exempt)
Using proformas as if they’re real invoices
Backdating invoices beyond legal timeframes

Recommended Invoicing Tools for Spain

FacturaDirecta: Cloud-based invoicing + expense tracking
Quipu: User-friendly and integrates with Modelo 130 and 303
Contasimple: Combines invoicing, accounting, and tax prep
Billin: Free option with Facturae compatibility
Debitoor: Modern interface, popular with freelancers

Need Health Insurance as a Freelancer or Autónomo?
As a self-employed professional in Spain, private health insurance isn’t just a safeguard — it’s often necessary for visa applications or accessing faster care. The Sanitas Professional Plus plan offers comprehensive coverage, English-speaking assistance, and optional sick leave protection — all tailored for freelancers like you.

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