How to Invoice a Foreign Company as a Freelancer in Spain

Knowing how to invoice a foreign company correctly is one of the first things a self-employed freelancer in Spain needs to master. A wrong VAT treatment, a missing tax number or an unclear payment line can delay payment, trigger questions from the tax agency or force you to issue a corrected invoice months later.

The short answer: for a business client in another EU country, you normally issue an invoice without Spanish VAT, state that the reverse charge applies and include both VAT numbers. For a business client outside the EU, the service is normally not subject to Spanish VAT either, and you say so on the invoice. In both cases you report the income in your quarterly filings and never apply IRPF withholding to a foreign client.

Tax rules change and exceptions exist (for example for real estate services, events or consumers). This guide is general information for freelancers resident in mainland Spain, not tax advice. Confirm your case with a gestor and the Agencia Tributaria before you issue your first invoice.

Key takeaways: invoice a foreign company

  • To invoice a foreign company, first decide where the client is established and whether it is a business or a consumer.
  • EU business clients: no Spanish VAT, reverse charge wording and both VAT numbers, plus registration in the ROI and the modelo 349 return.
  • Non-EU business clients: normally not subject to Spanish VAT, with a legal reference on the invoice.
  • Every invoice needs the mandatory Spanish invoice fields, a clear currency and complete payment details.
  • No IRPF withholding applies when you invoice a client outside Spain, but you must declare the income.

In this guide

  1. Key takeaways: invoice a foreign company
  2. Step 1: decide the VAT treatment before you invoice a foreign company
  3. Step 2: verify the client and collect the right data
  4. Step 3: include the mandatory details when you invoice a foreign company
  5. Currency: how to invoice a foreign company in dollars or euros
  6. What to file after you invoice a foreign company
  7. IRPF withholding when you invoice a foreign company
  8. Payment terms and getting paid
  9. Invoicing software and electronic invoicing in Spain
  10. Common mistakes when you invoice a foreign company
  11. Checklist: invoice a foreign company in 10 steps
  12. Frequently asked questions about invoice a foreign company
  13. Final thoughts on invoice a foreign company
  14. Sources and further reading
  15. Related guides

Step 1: decide the VAT treatment before you invoice a foreign company

The VAT treatment depends on two questions: where is the client established, and is the client a business or a private person? Answer these first, because everything else on the invoice follows from them.

ClientTypical VAT treatment for servicesWhat to write on the invoice
Business in another EU country, with a valid VAT numberNot taxed in Spain; the client accounts for VAT in its own country (reverse charge)No VAT, client’s EU VAT number, a note such as «Reverse charge» or «Inversión del sujeto pasivo»
Business outside the EU (for example the US, the UK or Mexico)Generally not subject to Spanish VAT under the place-of-supply rulesNo VAT and a note such as «Not subject to Spanish VAT (place-of-supply rules)»
Private person (consumer) in the EUOften Spanish VAT applies; special rules exist for some digital servicesSpanish VAT at the applicable rate, unless a special regime applies
Private person outside the EUDepends on the service; some are not subject to Spanish VATCheck the rule for your service before invoicing

For the detailed EU case, read how to invoice an EU client: VAT, ROI and reverse charge, and for US clients see how to invoice a US client from Spain.

Step 2: verify the client and collect the right data

Before you invoice a foreign company, ask for the details that must appear on the invoice and check that they are real:

  • Legal name and registered address, not just a trading name.
  • VAT or tax identification number. For EU clients, validate it in the European Commission’s VIES system. If it is not valid, you may have to charge Spanish VAT.
  • Billing contact and purchase order number, if the client’s accounts department needs one.
  • Preferred currency and payment method.
  • The contract or order that describes the service, so the invoice matches it.

Step 3: include the mandatory details when you invoice a foreign company

Spanish invoicing rules require the same core information whoever the client is. A complete invoice normally contains:

  1. Invoice number, and a series if you use one. Numbering must be consecutive.
  2. Issue date and, if different, the date the service was provided.
  3. Your full name or business name, address and Spanish tax ID (NIF).
  4. The client’s full name or company name, address and tax ID or VAT number.
  5. A clear description of the service and the period it covers.
  6. The taxable amount, the VAT rate and amount if any, or the reason why no VAT is charged, with the legal reference.
  7. The total to pay and the currency.
  8. Payment terms, due date and bank details.

You can write the invoice in English or another language the client understands. Keep the legal references clear, because the tax agency can ask for a translation in an inspection. Use our freelance invoice template in English as a starting point.

Currency: how to invoice a foreign company in dollars or euros

You can issue the invoice in euros or in another currency. When you invoice in dollars, pounds or another currency, remember these points:

  • Write the currency clearly in words and symbols, for example «USD 3,000.00».
  • Where VAT is charged, the VAT amount must also be shown in euros.
  • For your tax return you convert the income to euros using the applicable rate, so keep the date and the rate used. Ask your gestor which rate to apply.
  • Decide who bears the exchange-rate risk. See how to invoice in dollars and which exchange rate to apply.

What to file after you invoice a foreign company

The invoice is only the first step. A freelancer in Spain typically reports foreign income in these returns:

ReturnWhat it coversNotes
Modelo 130Quarterly income tax prepayment (IRPF) for professionalsIncludes income from foreign clients
Modelo 303Quarterly VAT returnOperations with EU and non-EU clients are reported in specific boxes
Modelo 349Summary of intra-EU operationsNeeded for services to EU business clients; frequency depends on your volume
Annual income tax returnWorldwide income of a Spanish tax residentForeign income must be declared; check double-tax relief if the client withheld tax

Because deadlines and thresholds change, check the current calendar of the Agencia Tributaria or ask your gestor.

IRPF withholding when you invoice a foreign company

When a Spanish freelancer invoices a Spanish client, the client normally withholds IRPF and the invoice shows a percentage. This does not apply when the client is established outside Spain, so your invoice to a foreign client shows no IRPF withholding. If the foreign client withholds tax in its own country, see withholding on foreign payments and claim relief for double taxation in your return.

Payment terms and getting paid

Agree payment terms before the work starts and write them on the invoice: due date, currency, accepted methods and who pays bank charges. For a client abroad, the cheapest payment method is usually a local transfer to a multi-currency account. Compare the options in how to get paid internationally. Add a late-payment clause so you have a legal basis to charge interest. See late payment clauses for international freelance contracts.

Invoicing software and electronic invoicing in Spain

Invoicing software that handles foreign clients, reverse charge wording and multiple currencies saves time and avoids mistakes. Spain is also introducing new rules for invoicing software and electronic invoices, so choose a tool that will be compliant. Read invoicing software for freelancers with foreign clients and e-invoicing in Spain: what freelancers must know.

Common mistakes when you invoice a foreign company

  1. Charging Spanish VAT by habit to an EU business client with a valid VAT number.
  2. Forgetting the client’s VAT number or not validating it in VIES.
  3. Not being registered in the ROI when you supply services to EU businesses without VAT.
  4. Omitting the legal reference that explains why no VAT is charged.
  5. Applying IRPF withholding to a client outside Spain.
  6. Mixing currencies without noting the exchange rate.
  7. Leaving payment details vague, so the client pays to the wrong account or with extra fees.
  8. Not keeping records of the contract, the invoice, the payment and the rate used.

If you make a mistake, you can issue a corrected invoice. See how to issue a corrective invoice or credit note for a foreign client.

Checklist: invoice a foreign company in 10 steps

  1. Confirm the client’s country and whether it is a business or a consumer.
  2. Validate the VAT number in VIES (EU clients).
  3. Choose the VAT treatment and the legal wording.
  4. Check that you are registered in the ROI if you supply services to EU businesses.
  5. Issue the invoice with all mandatory fields and a clear currency.
  6. Add payment terms, bank details and a late-payment clause.
  7. Send the invoice as a PDF and keep a copy.
  8. Record the invoice in your books and in your quarterly filings.
  9. Track the payment and the exchange rate.
  10. Follow up on the due date.

Frequently asked questions about invoice a foreign company

Do I charge Spanish VAT when I invoice a foreign company?

Usually not for business clients. For a business in another EU country with a valid VAT number, the reverse charge applies, and for a business outside the EU the service is generally not subject to Spanish VAT. For consumers the rules differ, so check your case.

Can I issue an invoice in English?

Yes. You can write it in English as long as it contains the mandatory information. Keep the legal references clear in case the tax agency asks for a translation.

Can I invoice in dollars from Spain?

Yes. State the currency clearly and keep the exchange rate and date for your tax return. Where VAT is charged, the VAT amount must be shown in euros.

Do I apply IRPF withholding to a foreign client?

No. The withholding applies to invoices to Spanish clients. You still declare the income in your tax returns.

Do I need to be in the ROI to invoice an EU company?

If you supply services to businesses in other EU countries without VAT, you normally need to be registered in the Registro de Operadores Intracomunitarios (ROI) and to file modelo 349. Confirm your situation with a gestor.

What if my foreign client does not give me a VAT number?

Without a valid VAT number you cannot treat the client as a business under the reverse charge. You may have to charge Spanish VAT, so ask for the number before you invoice.

Final thoughts on invoice a foreign company

To invoice a foreign company correctly you need three things: the right VAT treatment for the client’s location, a complete invoice and a clear record for your tax returns. Build a repeatable template, validate every client’s tax number and review the rules once a year. Once you know how to invoice a foreign company, each new international client takes only minutes to set up.

Sources and further reading

Related guides

Disclaimer: This article is for general information only and is not tax, legal or financial advice. Rules, fees and thresholds change often and differ by country; always confirm current details with the tax authority and a qualified adviser. Some links may be affiliate links, which means we may earn a commission at no extra cost to you.

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