🇪🇸 Is Accounting Mandatory for All Businesses in Madrid?
Yes. If you run a company or work as a freelancer in Madrid, you must comply with Spain’s national accounting laws — enforced locally by:
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AEAT (Agencia Tributaria – Spanish Tax Authority)
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Registro Mercantil de Madrid (Mercantile Registry)
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TGSS (Social Security Treasury, for payroll)
Whether you make income or not, you’re required to maintain proper books and file tax returns.
🧾 Bookkeeping Obligations for SL Companies
| Accounting Duty | Frequency |
|---|---|
| Daily journal entries | Ongoing |
| Annual accounts | Yearly |
| Corporate tax return (Modelo 200) | Yearly |
| VAT returns (Modelo 303, 390) | Quarterly + Yearly |
| Payroll withholdings (Modelo 111) | Quarterly |
| Legalization of books | Yearly |
| Filing with Mercantile Registry | Yearly |
📌 Records must be kept in Spanish (or co-official languages) for 6 years and follow standardized formats.
📒 Required Accounting Books
| Book Type | Required For |
|---|---|
| Libro Diario | All companies |
| Libro de Inventarios y Cuentas Anuales | All companies |
| Invoices received/issued | SLs and autónomos |
| Payroll ledger | If employing staff |
| VAT books | If VAT registered |
These must be digitally legalized at the Registro Mercantil de Madrid.
🧑💼 Accounting for Freelancers (Autónomos)
Freelancers must track:
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Invoices issued and received
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Business expenses and deductions
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Quarterly and annual tax declarations
Main filings include:
| Form | Purpose |
|---|---|
| Modelo 130 | Personal income tax (IRPF) advance |
| Modelo 303 | Quarterly VAT |
| Modelo 390 | Annual VAT summary |
| Modelo 347 | Annual report of large clients/suppliers |
We offer monthly bookkeeping + quarterly Modelo filings for autónomos in Madrid.
📅 Key Accounting Deadlines in Madrid
| Obligation | Deadline |
|---|---|
| Annual accounts approval | Within 6 months of fiscal year-end |
| Accounts submission to registry | Within 30 days after approval |
| Modelo 200 (corporate tax) | 6 months + 25 days from year-end |
| VAT filings (Modelo 303) | April, July, October, January |
| Legalization of books | Usually by April 30 |
💡 We manage all digital filings with AEAT and the Madrid Mercantile Registry.
💶 Penalties for Non-Compliance
| Violation | Consequence |
|---|---|
| Failing to file accounts | €1,200–€60,000 fine |
| Missing Modelo 200 | Tax audits, interest, and penalties |
| Not legalizing books | Books inadmissible in court |
| Late VAT returns | 1%–20% surcharge + interest |
Spanish authorities in Madrid are digitally integrated — errors in one area often trigger others (AEAT ↔ Mercantile Registry).
🧑💼 Our Accounting Services in Madrid
Borderless Lawyers offers:
✅ Full bookkeeping in Spanish formats
✅ Monthly, quarterly, and annual tax filings
✅ Digital certificate management
✅ Annual accounts and Mercantile Registry filing
✅ Legal representation for non-resident directors
📞 Need Accounting Support in Madrid?
We help foreign founders, freelancers, and SL companies handle all accounting and filing obligations in Madrid — correctly and on time.
👉 Contact us to outsource your accounting and stay compliant in Madrid.