In Spain, a modelo is simply a standardized tax declaration modelo used to report your financial activity to the Agencia Tributaria. Each modelo has a unique number and serves a specific purpose, from declaring your quarterly VAT to summarizing your annual income.
Think of them as a structured conversation with the tax office. Through these modelos, you report how much you've earned, the expenses you've incurred, the VAT you've collected from clients and the income tax you've withheld. The government uses this information to calculate how much tax you owe or if you are due a refund.
For freelancers, these modelos are not optional. They are a legal requirement and a core part of your administrative responsibilities. Missing a deadline or submitting incorrect information can lead to fines, so it’s important to get them right from the start.
The most common modelos for autónomos
While there are hundreds of modelos, most freelancers only need to worry about a handful. The specific modelos you need to file depend on your business activities, whether you rent an office and if you work with clients in other EU countries. Here are the most common ones you'll encounter.
Modelo 303: Quarterly VAT return
If you charge VAT (IVA in Spanish) on your invoices, Modelo 303 will become a regular part of your routine. This modelo is used to declare the VAT you've collected from your clients (IVA repercutido) and the VAT you've paid on your business expenses (IVA soportado).
You file it four times a year. The process involves calculating the difference between the VAT you collected and the VAT you paid.
- If you collected more VAT than you paid, you must pay the difference to the tax office.
- If you paid more VAT on expenses than you collected from sales, you can typically carry that credit forward to the next quarter or request a refund at the end of the year.
Modelo 130: Quarterly income tax prepayment
Modelo 130 is how you pay your personal income tax (IRPF) in installments throughout the year. Instead of paying a large lump sum when you file your annual tax return, you make advance payments based on your quarterly profits.
To complete this modelo, you calculate your net profit for the quarter (income minus expenses) and pay 20% of that amount to the tax office. This only applies if you don't apply IRPF withholdings on at least 70% of your invoices. If you are a professional who withholds IRPF for your clients, you may not need to file this modelo.
Modelo 111 & 115: Withholding tax declarations
Sometimes, you are responsible for withholding tax and paying it on behalf of others.
- Modelo 111 is for declaring income tax withholdings made to other professionals you've hired or to your employees.
- Modelo 115 is used to declare the withholding tax you retain from the rent paid for your office or workspace.
If you rent an office, for example, you withhold a portion of the rent payment and remit it to the tax office using Modelo 115.
Modelo 349: Reporting EU transactions
Do you work with clients in other European Union countries? If so, you’ll need to file Modelo 349. This is an informational modelo and you don’t pay any tax with it. Its purpose is to declare your commercial transactions (both sales and purchases) with other businesses or professionals registered for VAT in the EU. It helps tax authorities across Europe track cross-border trade.
How to manage your tax modelos
Keeping track of different modelos and their deadlines can feel overwhelming, but the right tools and routines can simplify the entire process. Here’s a practical approach:
- Keep Meticulous Records: The foundation of accurate tax filing is organized bookkeeping. Keep all your invoices and expense receipts in order. Digital tools are perfect for this, as they let you capture expenses on the go and generate compliant invoices automatically.
- Know Your Deadlines: Quarterly tax deadlines are typically in April, July, October and January. Mark these dates in your calendar and set reminders. Missing a deadline usually results in an automatic penalty.
- Use a Digital Certificate: To file your modelos online, you need a digital certificate (certificado digital). This is your secure online identity for interacting with Spanish government agencies. It’s essential for submitting modelos, checking notifications and managing your administrative life in Spain.
- Leverage Software: Modern invoicing and accounting software can be a lifesaver. Tools like Facturaz are designed specifically for freelancers in Spain. They automatically pull data from your invoices and expenses to generate your tax modelos, like Modelos 303, 130 and 349. This not only saves hours of manual work but also reduces the risk of making costly errors.
For instance, when you create Verifactu-compliant invoices and log your expenses in Facturaz, the platform keeps a real-time record of your finances. When it's time to file, the system populates the relevant modelos for you. All you need to do is review the data and follow the submission guidance.
Turning obligations into a simple routine
Understanding and managing modelos is a fundamental part of being a freelancer in Spain. While the names and numbers might seem intimidating at first, they are just structured reports of your business activity.
By staying organized, knowing your key dates and using the right software, you can transform tax filing from a stressful scramble into a predictable routine. This frees up your time and mental energy to focus on what truly matters: growing your business and serving your clients.
If you're looking for a tool that simplifies invoicing, expense tracking and tax filing, give Facturaz a try. It’s designed to handle the complexities of the Spanish tax system so you don’t have to.
