Simplified, normal or flat-rate (módulos) regime: which fits you?

Key rules

• Simplified limit: Simplified direct estimation is available while last year's turnover is no more than 600,000 euros.
• Modules: Modules only cover listed activities within set limits, and most professionals cannot use them.
• Renunciation: Renouncing lasts three years and then renews automatically unless you revoke it.
• Leaving modules: Once you leave modules, you cannot return for three years.

Which regime applies to you

Your regime depends on what you do and how much you invoice. There are three: simplified direct estimation, normal direct estimation and modules. Most newcomers start in simplified, because modules only cover a short list of activities. The decision block below helps you compare them.

Simplified direct estimation

This is the usual regime. It applies when the turnover of all your activities last year was no more than 600,000 euros. You also must not have renounced it, and your activities must not be in normal direct estimation or modules.

It uses simplified books and fixed depreciation tables, so the paperwork is lighter. If you leave modules, this is where you land by default.

If you go over 600,000 euros in one year, you move to normal direct estimation the following year.

Normal direct estimation

This applies if your turnover is above 600,000 euros a year, or if you choose it instead of simplified. For business activities it requires full accounting under the Commercial Code. Expect to need an accountant.

Flat-rate regime (módulos)

Under módulos, your profit is not based on your real figures. It is calculated from fixed indices, such as number of staff and surface area. It is optional and only for activities on the government's annual list, for example small retail, hospitality, transport, some crafts and agriculture. Most professionals are excluded.

You also need to stay within these limits:

• 250,000 euros of revenue for all activities combined.
• 125,000 euros of revenue where you invoice other businesses or professionals.
• 250,000 euros of purchases and services, not counting fixed assets.

You are out if you exceed the limits, if you have renounced, if you also carry on an activity in direct estimation, or if your activity is not on the list. The list and limits are renewed by ministerial order, so check the current order before relying on modules.

When you can change

You cannot switch whenever you like. Fixed windows apply.

• To renounce modules or simplified direct estimation, file modelo 036 in December of the year before the change.
• If you are just starting, renounce within the filing period of your first quarterly payment.
• Filing that first quarterly payment under the other method also counts as renouncing.
• A renunciation lasts three years, then renews automatically unless you revoke it. Revoking follows the same timing as renouncing.
• If you leave modules, you cannot return for three years.

The timeline below lays out these steps in order. Confirm exact dates and the form with the Agencia Tributaria before you file.

Choosing between options

Which way of calculating your profit fits you?

• Normal direct estimation: Your turnover is above 600,000 euros a year, or you chose to opt out of simplified.

• Flat-rate regime (módulos): Your activity is on the yearly ministerial list, such as small retail, hospitality, transport, some crafts or agriculture. Revenue must be under 250,000 euros for all activities, or 125,000 euros if you invoice businesses or professionals, and purchases and services under 250,000 euros. It is optional and calculates profit from fixed indices like staff and surface area.

If your activity is not on the modules list or you exceed its limits, choose between simplified and normal direct estimation: turnover up to 600,000 euros means simplified, unless you opt out of it.

Timeline and deadlines

• File modelo 036 to renounce modules or simplified direct estimation: in December of the year before the change applies

• File your first quarterly payment under the other method, which counts as renouncing: in the first quarterly filing period of the year

• Renunciation renews automatically unless you revoke it: after three years

• Revoke a renunciation using the same timing as renouncing: in December of the previous year, or in the first quarterly filing period if starting

• Return to modules after leaving them: not possible for three years

Frequently asked questions

What happens if my turnover goes above 600,000 euros in simplified direct estimation?

You move to normal direct estimation the following year if your turnover goes above 600,000 euros in one year. Normal direct estimation requires full accounting under the Commercial Code, so plan for a more complete set of books.

Can I go back to modules after I leave them?

No, not straight away: leaving modules bars you from returning for three years. When you leave, simplified direct estimation is the default regime you land in.

Can a freelance professional use modules?

Most professionals cannot use modules, because the regime only covers activities listed in the yearly ministerial order. It covers things like small retail, hospitality, transport, some crafts and agriculture.

How long does renouncing a regime last?

A renunciation lasts three years and then renews automatically unless you revoke it. Revoking uses the same timing as renouncing.