Main obligations
| Obligation | Form | When |
|---|---|---|
| Registration | Census declaration (modelo 036 or 037) and social security | Before starting |
| Social security quota | Monthly direct debit | Each month, adjusted to real income |
| VAT return | Modelo 303 | Quarterly: 20 April, July, October, 30 January |
| Income tax prepayment | Modelo 130 (unless most income is withheld) | Quarterly, same dates |
| Annual VAT summary | Modelo 390 | January |
| Annual income tax | Income tax return | April to June |
Social security on real income
Since 2023 the monthly quota depends on expected net income, chosen from a table of brackets and adjusted at year end with the actual figure. New autónomos can benefit from a reduced flat fee during the first year, and longer in some cases.
Withholding on invoices
Professionals invoicing Spanish businesses usually apply 15% income tax withholding, or 7% during the first years of activity. The withholding is credited in the annual return.
Deductible expenses
Expenses linked to the activity are deductible with proper invoices: office or part of the home used for work, equipment, vehicle in limited cases, professional fees, insurance and social security quotas.
Autónomo or company?
As profits grow, a limited company can be more efficient. See corporate tax, the tax calendar, our self-employed service and accounting.
An illustrative example
Based on situations we commonly see; not a specific client. An Italian yoga teacher in Ibiza registered as autónomo with an estimated income bracket that was too high. We adjusted the bracket to her real income, set up the quarterly returns and claimed the reduced fee she was entitled to as a new autónomo.
How Castell.tax can help
We keep the books and file the tax returns of autónomos and companies owned by foreigners in the Balearic Islands: VAT, quarterly payments, corporate tax, annual accounts and payroll withholdings, with reports in English or German. See our accounting service and self-employed service, or contact us for a monthly fixed fee.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
How much is autónomo social security?
It depends on your real net income bracket; new autónomos may pay a reduced fee the first year.
Do I charge VAT?
Most activities charge VAT; some, like certain education and health services, are exempt.
When are quarterly returns due?
By 20 April, July and October, and 30 January.
Can foreigners register as autónomos?
Yes, with an NIE and the right to work.