When and how to apply IRPF withholding

IRPF withholding (retencion) is a prepayment of your annual income tax. It applies when an autonomo invoices a company or another professional (client with CIF). The standard rate is 15% of the base imponible.

New autonomos in their first 2 complete calendar years of activity can apply the reduced 7% rate. To qualify, you must not have been registered as an autonomo in the previous year.

IRPF does NOT apply when: invoicing private individuals (personas fisicas), when the client is outside Spain, or for commercial activities (retail, manufacturing) — only professional activities.

In k-factu, toggle 'Apply IRPF' on the invoice form. The option only appears when the selected client has a CIF. The withholding is subtracted from the total: Base + IVA - IRPF = Total to pay.