🇪🇸 What Taxes Do Businesses Pay in Valencia?
Whether you’re a company (SL) or a freelancer (autónomo) operating in Valencia, you must meet several national and local tax obligations:
✅ Corporate income tax or personal income tax
✅ VAT (IVA) if applicable
✅ Withholdings (IRPF for salaries or contractors)
✅ Annual summaries and EU reporting
✅ Local municipal taxes (IAE, waste collection)
📌 All taxes must be filed with Agencia Tributaria (AEAT) online using a digital certificate.
🧾 Corporate Tax (Impuesto de Sociedades)
| Applies To | SL companies based or operating in Spain |
|---|---|
| Rate | 25% standard corporate tax |
| Reduced Rate | 15% for new businesses (first 2 profitable years) |
| Form | Modelo 200 (annually in July) |
| Advance Payments | Modelo 202 (3 times per year) |
You must file Modelo 200 even if your SL company is inactive or has no revenue.
📊 VAT (IVA) in Valencia
| Standard Rate | 21% on most goods and services |
|---|---|
| Reduced Rates | 10% (e.g., tourism), 4% (essentials) |
| Quarterly Filing | Modelo 303 |
| Annual Summary | Modelo 390 |
| EU Operations | Modelo 349 (if registered in VIES) |
📌 Freelancers and businesses must register for VAT unless exempt under special tax regimes.
💶 Personal Income Tax (IRPF) for Freelancers
| Applies To | Autónomos (self-employed) |
|---|---|
| Tax Basis | Net income after deductible expenses |
| Tax Rate | Progressive (generally 19%–30%) |
| Filing | Modelo 130 (quarterly), Modelo 100 (annual) |
You may also have to apply IRPF withholding (typically 15%) on invoices to Spanish clients.
👥 Withholding Taxes
| Who Must File | SL companies or freelancers with staff or contractors |
|---|---|
| Form | Modelo 111 (quarterly) |
| Annual Summary | Modelo 190 |
| Includes | Salary IRPF, freelance contractors, professional fees |
📌 Withholding errors can result in penalties or denied expense deductions.
🧾 Informative and Local Taxes
| Tax / Filing | Description | Frequency |
|---|---|---|
| Modelo 347 | Annual summary of operations with suppliers/clients > €3,005 | February |
| IAE (Impuesto de Actividades Económicas) | Local tax for business activity | Annual (only if turnover > €1M) |
| Valencia City Waste Tax | Applies to offices, stores, premises | Annual, billed by municipality |
We handle registration and communication with Valencia’s Ayuntamiento.
❌ Common Tax Mistakes in Valencia
⛔ Forgetting Modelo 200 for an inactive SL
⛔ Late Modelo 303 or 130 filings
⛔ Not registering for VIES when invoicing EU clients
⛔ Missing IAE registration for physical offices
⛔ Filing in English — AEAT only accepts Spanish formats
🧑💼 Our Valencia Business Tax Services
Borderless Lawyers offers:
✅ Full quarterly and annual Modelo filing
✅ VAT registration and VIES inclusion
✅ IRPF, payroll tax, and IAE filings
✅ Local tax registration in Valencia
✅ Digital certificate setup and AEAT representation
📞 Need Tax Help in Valencia?
We make tax compliance easy for foreign-owned businesses and freelancers — with transparent service, bilingual support, and on-time filings.
👉 Contact us to manage your tax filings in Valencia.