Modelo 130 — Everything you need to know
Your quarterly IRPF instalment payment. Simple, with real examples.
What is Modelo 130?
A quarterly declaration where you pay part of your annual IRPF tax in advance. Instead of waiting until June next year, you pay in instalments throughout the year.
Think of it as a quarterly subscription to IRPF — the tax authority prefers steady small payments over one large annual bill.
You earn €40,000 a year as a freelance designer. Instead of paying ~€8,000 IRPF in one go in June, you pay each quarter based on accumulated income.
Who has to file it?
Freelancers in direct estimation (normal or simplified) must file. But there is an important exception:
The 70% rule
If more than 70% of your previous year's income had IRPF withholding, you are exempt from filing Modelo 130 the following year. The withholdings already cover it.
• You only work with companies that withhold 15%: you are likely exempt
• You mix clients with and without withholding: calculate whether you exceed 70%
• First year of activity: checked quarter by quarter (no prior year exists)
In your first year as a freelancer you have no prior year, so you must check each quarter whether more than 70% of invoiced income carries withholding.
How much do you pay?
The formula is:
20% is the standard rate. YTD means accumulated since January — each quarter you account for everything up to that point in the year.
If the result is negative (you overpaid earlier), there is no refund — the balance is settled in the annual Renta return in June.
Special benefits in your first years
The tax authority knows the early years of freelancing are hard. They offer three measures that reduce what you pay:
Instead of the usual 15%, you can invoice with 7% withholding during your first year and the next two. Your clients withhold less → you have more cash flow.
To use it, add to your invoices: "IRPF withholding: 7% (reduced rate applicable to professionals in the first 2 years of activity)"
In the first year you have positive profit, and the next, you can reduce the tax base by an extra 20% (up to €100,000). This directly lowers your Modelo 130 and annual Renta.
Without the reduction you would have paid €3,000. You save €600 in that quarter alone.
Requirement: must not have carried out economic activity the prior year. Enable it in Settings.
If your activity income was low the prior year, you can deduct up to €100 from each quarterly instalment.
When is it due?
If the 20th falls on a weekend or public holiday, the deadline extends to the next working day.
How does it work in the app?
Most common confusions
Is Modelo 130 monthly or quarterly?
Quarterly. Four times a year: April, July, October and January.
What if I earn nothing in a quarter?
You still file but with a result of €0. This is called a nil declaration. Many freelancers forget this and end up with tax authority penalties.
Is 20% fixed or can I change it?
It is the standard rate. In your first year you can use 15% (reduced rate) or even less with the start-of-activity reduction. Adjust it in Settings inside the app.
Which expenses can I deduct?
All registered deductible expenses: RETA social security, utilities, office supplies, training, software, work travel, etc. More deductions = lower tax base = lower payment.
If I pay Modelo 130, do I still pay in Renta?
Not exactly. Modelo 130 is an advance payment. In the annual Renta (June) the definitive calculation is made: overpaid → refund; underpaid → pay the difference.