Modelo 111 handles quarterly withholdings on salaries and professional invoices. Think of it as your way to report and pay the income tax you've withheld from payments to employees or other professionals. Getting this right means staying on good terms with the Spanish tax authorities and avoiding penalties that can disrupt your business flow.
When to file Modelo 111
You must submit Modelo 111 quarterly, with specific deadlines that never change:
- First quarter: April 20
- Second quarter: July 20
- Third quarter: October 20
- Fourth quarter: January 20 of the following year
Mark these dates in your calendar now. Missing a deadline triggers automatic penalties and the amounts can add up quickly. The tax office doesn't send friendly reminders, so staying organized with your filing schedule becomes your responsibility.
Who must file Modelo 111?
Not every autónomo needs to worry about Modelo 111. You must file this modelo if you:
- Pay salaries to employees and withhold income tax (IRPF)
- Make payments to other professionals or freelancers where you apply withholdings
- Act as a withholding agent for any professional services
If you work alone without employees or subcontractors, you likely won't need this modelo. But the moment you start paying others for their services, Modelo 111 becomes part of your quarterly routine.
Common mistakes to avoid
Three mistakes trip up most autónomos when filing Modelo 111:
- Wrong withholding percentages: Different professional services require different withholding rates. Using 15% when you should apply 7% creates problems that take months to resolve. Always verify the correct rate for each type of payment.
- Missing quarterly deadlines: Late filing triggers penalties that start immediately. The tax office calculates surcharges based on how late you file and how much you owe. A few days can cost you significant money.
- Incorrect identification data: Wrong tax IDs, addresses or company information invalidate your filing. Double-check every detail before submitting, because corrections require additional paperwork and explanations.
