Modelo 130 (quarterly IRPF instalment)
Quarterly income-tax instalment payment (IRPF) for self-employed people and professionals under direct estimation. The payment is 20% of net income accumulated since January, minus earlier instalments and withholdings suffered. Some professionals are exempt.
Applies to: Spain Updated: Editorial review: pending
What it is
Modelo 130 is the form for the quarterly IRPF instalment. Through the year the self-employed person advances to the tax authority part of the tax that will come out of the annual income tax return, rather than paying everything at once in the spring filing season. The personal income tax regulation governs it in articles 109 to 111.
How it is calculated
For activities under direct estimation, in any of its variants, the payment is 20% of the net income accumulated from 1 January to the last day of the quarter (article 110.1.a). From that amount you subtract the instalments that would have been due in earlier quarters and, for professional activities, the withholdings suffered and payments on account for the same period (article 110.3).
Who must pay
Taxpayers who carry on economic activities are obliged. A professional is exempt if, in the previous calendar year, at least 70% of the income from that activity was subject to withholding or payment on account (article 109.2). Someone starting out applies the same test to the period elapsed so far. Activities under objective estimation use another percentage: 4% of net income in general, less when there is little salaried staff.
Deadlines
Instalments are filed within the deadlines in article 111: 1 to 20 April, July and October for the first three quarters, and 1 to 30 January for the fourth. When nothing is payable, a nil return is filed.
Common mistakes
- Filing modelo 130 when exempt under the 70% withholding test, or skipping it when the test is not met.
- Starting from the quarter’s income instead of the year-to-date net income.
- Forgetting to subtract withholdings suffered.
- Counting a non-deductible item as an expense, which lowers net income and the payment.
- Confusing modelo 130 with modelo 303: one is income tax, the other VAT.
How Frihet handles it
Frihet calculates a preview of modelo 130 from your year’s income and expenses and exports the text file in the tax agency’s format. It does not file it: you or your advisor do. Checking whether you are exempt under the 70% test, and which expenses are deductible for income tax, remains a matter for you and your advisor.