Withholdings and annual summary returns your company must file

Terms used

• IRPF — IRPF is Spain's personal income tax, which employers withhold from salaries in advance.
• AEAT — The AEAT is Spain's national tax agency.
• Modelo 111 — Modelo 111 is the quarterly return for withholdings on salaries and professional fees.
• Modelo 115 — Modelo 115 is the quarterly return for withholdings on rent of urban property.
• Modelo 123 — Modelo 123 is the quarterly return for withholdings on dividends and other capital income.
• Modelo 347 — Modelo 347 is the annual return listing operations with clients and suppliers above the legal threshold.
• Gestor — A gestor is an administrative adviser who handles tax and paperwork filings for businesses.

Key rules

• Professional fees: Withhold 15% in general, or 7% in a professional's first three years of activity.
• Rent and dividends: Both are withheld at 19%, on Modelo 115 and Modelo 123 respectively.
• Quarterly filing: Modelos 111, 115 and 123 are due in the first 20 days of April, July and October, with January for the fourth quarter.
• Annual summaries: Modelos 190, 180 and 193 are filed electronically by 31 January.
• Modelo 347: Report counterparties above 3,005.06 euro a year, VAT included, by the end of February.

What your company has to withhold

When your company pays certain people, it keeps back part of the payment and hands it to the tax office (AEAT). You act as a collector for the person you pay. Each type of payment has its own rate and its own return.

Payroll

Payroll withholding (IRPF) has no single rate. It depends on each employee's salary and family situation. Payroll software or your gestor (a tax and admin adviser) calculates it for each person.

Professionals

Freelancers who invoice you are withheld at 15% in general. The rate is 7% for new professionals in their first three years of activity. It is 2% for certain agricultural or livestock activities. Ask the professional which rate applies and keep that statement with the invoice.

Rent

If your company rents an office or other urban property, withhold 19% of the rent and pay it on Modelo 115.

Dividends

When you pay dividends to resident individuals, withhold 19% and report it on Modelo 123. Payments to non-residents follow different rules and use other models, such as Modelo 216. Ask your gestor before paying them.

Quarterly returns

Modelos 111, 115 and 123 are filed quarterly, in the first 20 calendar days of April, July and October. The fourth quarter is filed in January: by 30 January for Modelos 111 and 115, and by 20 January for Modelo 123. Direct debit payment closes a few days earlier.

Large companies file Modelos 111 and 115 monthly, within the first 20 days of the following month. You are large if your turnover is above 6,010,121.04 euro or you are in the monthly VAT refund system (REDEME).

If a deadline falls on a weekend or holiday, it moves to the next working day.

Annual summaries

Each quarterly return has a yearly summary. File it electronically in January for the previous year, if you made withholdings that year:

• Modelo 190 summarises Modelo 111 (salaries and professional fees).
• Modelo 180 summarises Modelo 115 (rent).
• Modelo 193 summarises Modelo 123 (dividends and interest).

All three are due by 31 January.

Modelo 347

Modelo 347 reports your dealings with clients and suppliers. You include any one counterparty with whom total operations in the calendar year exceed 3,005.06 euro, VAT included. File it by the end of February for the previous year.

Cash receipts above 6,000 euro from one client are reported separately. Leave out operations already reported on other models, such as withholding or rent returns, and intra-EU operations. Some other cases are also excluded, so check the current instructions.

The timeline and questions below cover the dates and common doubts.

Timeline and deadlines

• File Modelos 111 and 115 for the fourth quarter: By 30 January

• File Modelo 123 for the fourth quarter: By 20 January

• File the annual summaries 190, 180 and 193 electronically: In January, by 31 January, for the previous year

• Move any deadline that falls on a weekend or holiday: To the next working day

Frequently asked questions

Does my company have to file Modelo 347 for every client and supplier?

No, Modelo 347 is only needed for a counterparty when your total operations with them pass 3,005.06 euros in the calendar year, VAT included.

When is Modelo 347 due?

Modelo 347 is filed by the end of February for the previous year. This is a different date from the January annual summaries, so diarise it separately.

Can my company file withholding returns monthly instead of quarterly?

Only large companies file Modelos 111 and 115 monthly, meaning turnover above 6,010,121.04 euros or registration in the monthly VAT refund system (REDEME). They file within the first 20 days of the following month. Everyone else files quarterly.

What if a withholding deadline falls on a weekend or holiday?

The deadline moves to the next working day. Paying by direct debit is possible up to a few days earlier than the normal filing window, so check the cut-off before relying on it.