Autonomo Taxes in Spain: IVA and IRPF Explained Quarter by Quarter

If you work on Mallorca as an autonomo, you quickly learn a new rhythm: every three months, the Agencia Tributaria comes calling. Autonomo taxes in Spain work differently from the single annual income tax return you may know from home. As a self-employed person you file two forms four times a year: the Modelo 303 for value added tax (IVA) and the Modelo 130 for the income tax prepayment (IRPF). This article explains what exactly is due, how the calculation works, which expenses you can deduct and when a gestoria is worth the money.

Modelo 303: The Quarterly IVA Return

The Modelo 303 is the quarterly VAT return for self-employed people and companies in Spain. In it you declare the IVA you charged your clients, subtract the IVA you paid on business expenses, and transfer the difference to the Agencia Tributaria.

The standard IVA rate in Spain is 21 percent. There is also a reduced rate of 10 percent (for example for restaurants and passenger transport) and a super-reduced rate of 4 percent for basic foodstuffs and books. As a service provider you will charge 21 percent in most cases.

A simple example: in one quarter you invoice 6,000 EUR net and add 1,260 EUR of IVA. At the same time you spent 500 EUR net on software, office supplies and your phone, paying 105 EUR of IVA on top. In the Modelo 303 you declare both amounts and transfer 1,155 EUR.

Two special cases are worth knowing:

• Clients elsewhere in the EU: For B2B services to companies in other EU countries, the reverse charge mechanism applies. You invoice without IVA, but you must first register in the ROI (Registro de Operadores Intracomunitarios) and additionally report these sales in the Modelo 349.
• Exempt activities: Certain professions such as language teaching or medical services are exempt from IVA. In that case the Modelo 303 does not apply, or only partially.

Details and electronic filing are available in the IVA section of the Agencia Tributaria.

Modelo 130: The IRPF Prepayment

The Modelo 130 is the quarterly prepayment on your income tax. The calculation is cumulative: you declare all income and deductible expenses since 1 January, apply 20 percent to the profit, and subtract what you already paid in the previous quarters.

Important to understand: the 20 percent is not a final tax but a down payment. Your actual IRPF is only calculated in the annual return (Renta, Modelo 100) in the spring of the following year, with progressive tax rates and personal allowances. If you prepaid too much over the year, you get the difference refunded. How the annual return works is covered in our guide to filing a tax return in Spain.

There is one important exception: if at least 70 percent of your income comes from Spanish business clients who already withhold a retencion (withholding tax of 15 percent, or 7 percent for new autonomos in their first three years), you are exempt from the Modelo 130. This applies to many freelancers who mainly work for agencies or companies in Spain. Information on the IRPF is available in the IRPF portal of the Agencia Tributaria.

Deadlines and Typical Costs at a Glance

The filing deadlines are identical for both modelos and apply per calendar quarter:

1. First quarter: 1 to 20 April
2. Second quarter: 1 to 20 July
3. Third quarter: 1 to 20 October
4. Fourth quarter: 1 to 30 January of the following year

Which Expenses You Can Deduct

In principle you can deduct anything that is documented and used exclusively for your business. The most important items include:

• Seguridad Social contributions (your monthly autonomo contribution is fully deductible)
• Gestoria, tax advice and legal fees
• Office or coworking rent; if you work from home, 30 percent of utility costs proportional to the space you use for work
• Software, hosting, phone and hardware used for work
• Training courses and professional literature
• Travel costs and business meals within narrow limits, and only with a proper invoice (factura) issued to your name and your NIE

A simple till receipt (ticket) is not enough for the Agencia Tributaria. Ask for a full factura with your tax details for every larger purchase, otherwise the deduction is lost in an audit. How to issue correct invoices yourself is covered in the guide Invoicing in Spain.

Do I also have to file an annual return as an autonomo?

Yes. The quarterly modelos are only prepayments. In spring comes the Renta (annual income tax return), usually between April and the end of June. On top of that, anyone liable for IVA files an annual summary (Modelo 390), unless an exemption applies.

Do It Yourself or Hire a Gestoria?

Technically you can file both modelos yourself via the Sede Electronica of the Agencia Tributaria, provided you have a certificado digital or Cl@ve. If you only write a few invoices per quarter, have no clients elsewhere in the EU and speak solid Spanish, you can manage it on your own with some practice.

In reality, most foreign autonomos hand the quarterly filings to a gestoria. For 50 to 100 EUR per month it takes care of bookkeeping, all modelos and communication with the tax office. That pays for itself quickly: a single mistake with reverse charge or one missed quarter costs more than a year of gestoria fees. What else a gestoria can do for you is covered in the gestoria guide.

Conclusion

Autonomo taxes in Spain follow a clear beat: four times a year the Modelo 303 for IVA and the Modelo 130 for the IRPF prepayment, plus the annual return in spring. Put the deadlines of 20 April, 20 July, 20 October and 30 January firmly in your calendar. With clean facturas, a disciplined tax reserve and, if needed, a gestoria, the system is very manageable. If you are just getting started, the guide Working as an Autonomo in Spain walks you through every step from registration to your first job.