Freelance consultants in Spain with one EU client: why “simple” setups often go wrong

If you are a freelance consultant in Spain working for a single client elsewhere in the EU, your situation probably feels straightforward. You issue invoices with zero VAT, you receive regular income, and there are no complex supply chains or multiple customers to track.

This apparent simplicity is exactly why problems tend to appear later.

Why this affects so many consultants

This scenario is very common among European expats in Spain: consultants, advisors, developers, or specialists providing services remotely to one EU-based client.

In practice, the confusion comes from a combination of factors:

• Zero VAT on invoices creates the impression that VAT obligations do not exist.

• Having one client feels administratively “lighter” than running a broader business.

• Advice is often based on general freelancer rules, not on cross-border consulting setups.

  
  

As a result, many consultants believe they are compliant because nothing unusual seems to be happening. In reality, this type of setup requires more precision, not less.

What the rules actually require in practice

Spanish tax compliance for this profile is not complex, but it is strict. The key issue is that obligations do not disappear just because amounts are zero or activity is limited.

Zero VAT does not mean no VAT filings

In most EU B2B consulting scenarios, VAT is not charged on invoices under the reverse charge mechanism. That part is usually correct.

The mistake is assuming that zero VAT means no VAT returns.

In practice, VAT obligations often still include:

• quarterly VAT filings,

• annual VAT summaries,

• and additional informational forms linked to EU transactions.

  
  

We regularly see consultants who have invoiced correctly for years, but never filed VAT returns because “there was no VAT to pay”. This is one of the most common compliance gaps in this profile.

Accounting records are still mandatory

Even with one client and zero VAT, proper accounting records are required.

This includes maintaining:

• a sales ledger,

• a purchase ledger,

• and supporting documentation for income and expenses.

  
  

These books are often ignored because they are not actively requested year by year. The problem usually appears later, when documentation is requested for past periods and records are incomplete or inconsistent.

The absence of proper books is difficult to fix retroactively.

Digital invoicing changes do not remove current duties

There has been a lot of confusion around upcoming digital invoicing requirements. While certain systems have been postponed until 2027, this does not remove current obligations.

Postponements do not eliminate:

• record-keeping requirements,

• proper invoice issuance,

• or the need for coherent accounting records.

  
  

Relying on future regulatory changes to justify current gaps is a risky assumption.

Expense deductions: where “simple” becomes technical

Another area where generalist advice often falls short is expense treatment. Consultants with one EU client typically have clean, predictable expenses, but those expenses still need to be handled correctly.

Home office and rent

In some cases, part of the rent can be deducted, often up to a certain percentage, provided specific conditions are met. This is not automatic.

It requires:

• correct registration,

• consistent use,

• and proper justification.

  
  

Without meeting those requirements, claiming the expense can create more risk than benefit.

Travel and related costs

Travel expenses are deductible only when they are:

• clearly linked to the activity,

• properly documented,

• and demonstrably necessary.

  
  

This is another area where freelancers either over-claim or avoid claiming anything at all. Both approaches can be problematic.

Equipment and electronics

Laptops, monitors, and other electronic equipment are often essential for consultants. These items are not always deductible in full in the year of purchase.

In many cases, amortisation rules apply. This is frequently missed or applied incorrectly, even by advisors who handle more standard freelance profiles.

Subscriptions and digital tools

Software, platforms, and professional subscriptions are typical consulting expenses. They are generally deductible when they are indispensable for the activity and properly documented.

The key issue is not whether these expenses exist, but whether they are recorded, classified, and justified consistently.

First-year incentives that get overlooked

There are specific tax incentives that can apply during the first year of activity. These are often missed, especially when the setup is treated as “simple” and handled with minimal review.

Missing these incentives does not cause penalties, but it does affect the overall cost efficiency of the structure.

The real cost of non-specialised advice

Many consultants assume that any accountant can handle a one-client, zero-VAT setup. In reality, this profile sits at the intersection of freelance accounting and cross-border tax rules.

The return on working with a specialist is rarely about aggressive tax savings. It is about:

• avoiding missing filings,

• applying deductions correctly,

• preventing future regularisations,

• and keeping the structure clean if you later change clients, countries, or stop the activity.

  
  

Most issues we see are not dramatic, but they accumulate quietly over time.

When this applies to you

This situation usually applies to you if:

• You are a freelance consultant in Spain working for one EU-based client.

• Your invoices show zero VAT and you have assumed VAT filings are unnecessary.

• You do not keep formal sales and purchase books.

• Your expenses are deducted informally or not reviewed in detail.

• Your setup has been handled as “simple” without a tailored review.

• You plan to continue, expand, or eventually close the activity cleanly.

  
  

A practical way to look at “simple” setups

Working with one EU client can be an efficient and stable way to operate as a freelancer in Spain. The issue is not the structure itself, but the assumption that it runs on autopilot.

Most problems in this profile are preventable with the right setup and periodic checks. They are rarely obvious at the start, and they almost always surface later, when fixing them is more time-consuming.

If your situation matches any of the above, this usually requires a proper tax review to avoid mistakes.

BOOK AN ORIENTATION CALL HERE