Freelance & Business Guide To Spanish Tax Forms
For any freelancer or entrepreneur doing business in Spain navigating through the maze of form filling has always been a challenge.
Indeed the filling out of form has been taken to an art form and sprouted an industry of gestorias and advisers to allow smoothj sailing through the bureaucracy of the Spanish tax authorities for the penalties are high for getting it wrong.
With that in mind we have asked our resident Spanish tax adviser Antonio Rodriguez to share with metropolitan readers a rough guide for which form does what.
With a bewildering number of forms or better known as (modelos) it’s worth getting it right
In fact, the Spanish Tax Administration (AEAT) has some 206 different fiscal forms corresponding to reports and tax settlements.
Some are mainly for corporations and others are never used. Below we list the most common forms (Modelos), their descriptions, and how and when they should be used.
Be aware that the País Vasco and Navarra have their own systems which are completely independent of the national system.
All forms and reports must be filed online with the Tax Administration. To do so, you need either a digital signature or a “Clave PIN.” If the declarant does not have an electronic certificate, the person making the presentation must be authorized by the AEAT to present the form.
Here are some terms to better understand the “Modelos”:
AEAT: Agencia Tributaria: Spanish Tax Administration.
IRPF: Impuesto de la Renta de las Personas Físicas: Personal Income Tax Return for Residents.
IVA: Impuesto sobre el Valor Añadido VAT: Value Added Tax.
Valor Catastral: The Cadastral Value is the value that the Spanish administration gives to each property, based on data found on the Land Registry.
Modelo 002. Used by taxpayers with liquidity problems to request a deferral or payment of tax debts in installments.
Modelo 030. To report a change of address or residence for individuals without an economic activity. It must be filed within three months of the change.
Modelo 036/037 The 036 is used to register, modify, and cancel information in the census of entrepreneurs, professionals, and tax withholders. Individuals who are going to carry out economic activity as self-employed can file form 037 (a simplified tax register declaration.)
Modelo 100 (Annual) This is the Personal Income Tax Return that we commonly refer to as the “Income Declaration” or IRPF. The Modelo 100 is usually filed between the months of April and June. You must report worldwide income of the previous year if you were a fiscal resident of Spain.
Modelo 111 (Quarterly) Companies and the self-employed declare the withholding tax retained for any invoices received.
In general, the withholding tax (IRPF) applied to professionals is 15%, except in the case of new self-employees, which is 7% during the first 3 years. The Modelo 111 must be filed by the 20th of April, July, October and January with the information of the three previous months.
Modelo 115 (Quarterly) Used to declare the withholding tax from the rental of business premises, warehouses or offices, unless the rental amount does not exceed 900 euros per year to the same lessor. The withholdings are always 15% and the filing dates are the same as in Modelo 111, 130 and 303.
Modelo 130 Used to settle the payments in installments of personal income tax for those who are self-employed.
Modelo 149 Often referred to as the “Beckham Law,” this is used for workers posted to Spanish territory. The Modelo 149 needs to be filed within 6 months of arrival in Spain and is valid for up to 5 years. Under this system, you pay a flat 24% (19% for EU Citizens) tax on your gross Spanish income, instead of a progressive tax on your worldwide income, up to €600,000, and 47% for higher incomes.
Modelo 151 (Annual) The Tax Return for individuals under the special tax system applicable to workers posted to Spain (Beckham Law).
Modelo 210 Non-Residents Income Tax. Used principally for three purposes:
- To report and pay taxes for rents in Spain paying 24% (19% for EU citizens) of the gross income. In this case, you must file a quarterly report with the same deadline as Modelo 111, 115, 130 and 303.
- To report and pay taxes on any house that you own in Spain. You must pay 24% of the 1,9% of the Cadastral Value (Valor Catastral) of the house. It must be filed annually before the end of the following year.
- To report Spanish source earned income: You must pay 24% (19% for EU citizens) of your gross income, with no deductions whatsoever. It must be filed annually before the end of the following year.
Modelo 303 (Usually quarterly) To report the quarterly VAT for the self-employed and companies. Deadlines are the same as for Modelos 111, 115 and 130, i.e., the 20th of April, July and October, and the declaration for the fourth quarter of the year can be submitted until January 30.
Modelo 347 (Annual) A summary of operations with third parties. The report lists all companies that you do business with, where the total invoicing is over 3,000€.
Modelo 349 (Usually quarterly) An informative declaration of intra-Community tax presented monthly, quarterly or annually– depending on the total volume of transactions. Both the self-employed and companies detail their intra-community operations, i.e., sales of goods or services made to a company, or a professional located in another member state of the EU.
Modelo 650 This form is used for inheritance and donations for residents in Spain. Tax is paid after the transfer of the assets and within six months of the death of the individual. Each autonomous region in Spain has different taxation rules.
Modelo 714 This document is used to declare Capital Gains Tax. Each autonomous region in Spain has its own rules, and in some of them, you pay up to 30% tax.
Modelo 720 A strictly informative document which Spanish residents must file, reporting 1) financial accounts, 2) investments and 3) real estate owned in a foreign country, if the value on December 31st of any of the three areas exceeds €50,000. The Modelo 720 is filed between January and March of the following year.
Annual summary forms: There are annual informative forms that simply do that–inform. No payment is required. The annual models are a compilation of the 4 quarterly declarations.
The three most common forms are:
Modelo 190 (Annual) Purely informative. A summary of withholding tax on work income and income from economic activities, and certain capital gains. (This Modelo is a summary of the quarterly Modelo 111.)
Modelo 180 (Annual) Purely informative. A summary of withholding tax from income or earnings from the letting or subletting of urban buildings. (This Modelo is a summary of the quarterly Modelo 115.)
Modelo 390 (Annual) Purely informative. A summary of VAT tax.
(This Modelo is a summary of the quarterly Modelo 303.)
For further information, consult the AEAT website (available in English): https://sede.agenciatributaria.gob.es/Sede/presentar-consultar-declaraciones-modelo.html
Written by US Tax Consultants
Madrid Metropolitan, May 2022