Teaching languages online through platforms like Italki has become a popular way to earn income from anywhere in the world. Many teachers living in Spain work with international students and receive payments through platforms such as PayPal or bank transfers.
However, once you start earning money regularly, an important question appears: how do taxes work when you teach on Italki from Spain?
In this guide, we explain whether you must register as an autonomo, what taxes you need to pay, what expenses you can deduct, and how to invoice platforms like Italki in 2026.
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Do I have to declare income from Italki in Spain?
Yes. If you live in Spain and teach on Italki or similar platforms, the income you receive must normally be declared as self-employment income.
Even if the platform is located outside Spain, the Spanish tax authorities consider that the activity takes place where the teacher resides.
That means the income must be declared in:
- Quarterly income tax payments (Form 130) if no withholding applies.
- Your annual income tax return (IRPF).
Failing to declare online teaching income can result in tax penalties if detected during a tax inspection.
Do I have to register with the Tax Agency and Social Security?
If you carry out an economic activity on a regular basis — and teaching languages qualifies as one — you should register with both the Spanish Tax Agency (Agencia Tributaria) and Social Security as a self-employed worker (autonomo).
Our professional recommendation is always to register properly before starting the activity.
There has traditionally been debate in Spain about whether you must register with Social Security if your income is very low or occasional. However, the general criterion of Social Security is that regular economic activity requires registration in the self-employed regime (RETA).
For this reason, if you teach languages regularly through platforms such as Italki, the safest and most compliant option is to register both with the Tax Agency and Social Security.
Under which activity code do I register with the Tax Agency?
The most common activity classification for language teachers is:
IAE Code 826 – Teaching Personnel of Various Education, such as Physical Education, Sports, Languages, and similar activities.
This activity is classified as a professional activity and is included in Section 2 of the Spanish Tax on Economic Activities (IAE) under Royal Legislative Decree 1175/1990.
This section classifies freelancers as professionals rather than business activities.
How much do I pay for Social Security as a freelancer?
Since 2023, Spain has implemented a new income-based contribution system for self-employed workers.
Instead of a fixed minimum contribution, freelancers now pay a monthly contribution depending on their expected net income.
As of 2026, monthly contributions generally range approximately between:
- Around €225 per month for freelancers with the lowest income levels.
- Up to around €530 per month for freelancers with higher income brackets.
The exact amount depends on the net monthly income (income minus deductible expenses) declared during the year.
Reduced rate for new freelancers (Tarifa Plana)
If this is your first registration as self-employed, or you have not been registered for at least two years, you may benefit from the flat rate (“tarifa plana”):
- €80 per month during the first 12 months
This reduced rate may be extended for an additional 12 months if your income remains below the minimum wage.
What taxes do I have to pay?
Language teaching activities are generally exempt from VAT in Spain when they involve educational services related to teaching languages. Here is the full list on the Tax Agency’s website of VAT exempt activities.
This means:
- You do not charge VAT on your invoices.
- You do not need to submit quarterly VAT returns (Form 303).
- You do not submit the annual VAT summary (Form 390).
However, you must still pay personal income tax (IRPF) on your profits.
Withholding tax (IRPF)
Professional activities are normally subject to withholding tax when invoicing Spanish companies or other freelancers.
Typical rates are:
- 15% standard withholding
- 7% reduced rate during the first three years of activity (optional)
If most of your clients are Spanish companies applying withholding, you may not need to submit quarterly income tax payments (Form 130).
However, if you mainly work with international platforms such as Italki, where no withholding is applied, you will normally need to submit:
Form 130 every quarter, paying 20% of your net profit. More information on how this form works in our article about Spanish IRPF.
What expenses can I deduct?
You can deduct any expense that meets the following conditions:
- It is necessary for your activity
- It is properly documented with an invoice
- It is recorded in your accounting
Typical deductible expenses for online language teachers include:
- Professional training courses
- Teaching materials and books
- Online teaching platforms or software subscriptions
- Website hosting and maintenance
- Marketing or advertising
- Computer equipment and accessories
- Platform commissions (Italki, PayPal, etc.)
- Professional services (accountant or tax advisor)
If you are unsure about a specific expense, it is always best to consult your tax advisor.
I work from home. What can I deduct?
If you work from home and have declared part of your property as your workplace when registering with the Tax Agency, you may deduct a portion of household utility expenses.
These may include: electricity, water, gas, Internet, telephone.
You calculate the deductible percentage by applying 30% to the proportion of your home used for the activity.
Example
An online teacher works from home and uses a room of 18 m² in a 90 m² house.
- Workspace proportion: 18 ÷ 90 = 20%
Now apply the formula to a €145 Internet and phone bill:
- €145 × 20% = €29
- €29 × 30% = €8.70 deductible
Important note
These rules only apply to the taxable base of the expense, not to VAT. Most times, you cannot deduct VAT from household utility bills when working from home.
Platforms deduct commissions before paying me. How should I record this?
If a platform deducts its commission before sending you the payment, there are two possible accounting approaches.
Option 1 (simplest)
Record only the amount you actually receive as income.
This is usually the easiest method, especially if you do not receive a formal invoice for the commission.
Option 2
Record: the full lesson price as income, and the platform commission as an expense.
This method is more accurate but requires documentation of the commission charged by the platform.
How to invoice Italki
Even though Italki manages the payments, you should still issue invoices for your services. A practical approach is to issue one invoice per month, grouping several lessons together.
Ideally, the invoice amount should match the total amount you withdraw from the platform to your PayPal account or bank account.
This helps show that the income recorded in your accounting corresponds to the payments received.
It is also advisable to keep a record of the classes included in each invoice, either directly in your invoicing software or in a separate spreadsheet. This documentation can be very helpful if the tax authorities review your activity.
Invoice details
Your invoice should include:
- Italki’s tax details
- The total amount received
- The invoice issued without VAT and without withholding
This is because Italki’s tax address is outside Spain (Hong Kong).
If you receive payments through PayPal, you can record PayPal transaction fees as a deductible expense.
FAQs about Teaching Languages Online as a Freelancer in Spain
1. Do online language teachers need to register as self-employed in Spain?
Yes, if you teach languages regularly and receive income from it, you should register with both the Spanish Tax Agency and Social Security as a self-employed worker.
2. Do language teachers charge VAT on their lessons?
No, language teaching is generally exempt from VAT in Spain when it qualifies as an educational activity.
3. Do I need to submit quarterly VAT returns?
No, because the activity is VAT-exempt, you normally do not submit Form 303 or Form 390.
4. What income tax forms do I need to submit?
If your clients do not apply withholding (as with platforms like Italki), you will normally submit Form 130 quarterly, paying 20% of your net profit.
5. Can I deduct platform commissions?
Yes. Commissions charged by platforms such as Italki or PayPal can be recorded as deductible business expenses.
6. Can I deduct part of my home expenses if I work from home?
Yes, if you declare part of your home as your workplace with the Tax Agency. You can deduct a proportion of utilities such as electricity, internet, and telephone.
7. Do I need to invoice Italki?
Yes. Even if the platform manages payments, it is recommended that you issue periodic invoices reflecting the income you receive from the platform.
Conclusion
Online language teaching platforms have opened new opportunities for freelancers in Spain to reach students worldwide.
However, working with international platforms also requires proper tax compliance. Registering your activity correctly, issuing invoices, and keeping clear records will help you avoid problems with the tax authorities and run your freelance activity professionally.
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