Can I deduct expenses I incurred before registering as autónomo?

Investment assets (capital goods) acquired before registration (such as laptops, cameras, or professional tools) may be included as business expenses provided they are used exclusively and effectively for your future professional development, and are recorded as assets subject to depreciation.

Other preparatory expenses (rent, training, supplies, etc.) are also deductible for personal income tax purposes if you can provide documentation proving they were incurred solely for the purpose of preparing for your future business activity.

What about the VAT on these expenses?
To deduct VAT with complete certainty, the regulations require that you have previously filed Modelo 036 declaring the “commencement of operations prior to the business activity” before incurring the expense. However, the courts allow the deduction of this VAT if you can prove to the tax authorities, through objective evidence, the clear and unequivocal intention to use those goods or services for your business.

Since this is a rigorous process with the tax authorities, we suggest you review these preliminary expenses in detail with your Xolo advisor before entering them into the platform to avoid any requests for additional information.