🧾 Business Taxes in Ibiza – Overview
Even though Ibiza is an island, its tax rules follow the Spanish national framework. However, enforcement and some local rates are managed by Agencia Tributaria (AEAT) and Eivissa City Hall.
| Tax Type | Applies To | Filing Schedule |
|---|---|---|
| Corporate Tax (IS) | SL Companies | Annual (Modelo 200) |
| Personal Income Tax (IRPF) | Freelancers | Quarterly (Modelo 130), Annual (Modelo 100) |
| VAT (IVA) | Most goods/services | Quarterly (Modelo 303), Annual (Modelo 390) |
| Withholding Tax (IRPF) | Employers & freelancers | Quarterly (Modelo 111), Annual (Modelo 190) |
| Informative Declarations | For certain transactions | Annual (Modelo 347) |
We register your tax activity, file quarterly, and ensure you meet all deadlines.
🏢 SL Companies – Tax Requirements
| Item | Details |
|---|---|
| Corporate Tax Rate | 25% standard (15% for new SLs) |
| Annual Filing | Modelo 200 (corporate tax return) |
| Quarterly Advances | Modelo 202 (prepayment) |
| Annual Accounts | Submitted to Ibiza’s Mercantile Registry |
| VAT | Required unless exempt activity |
Even a dormant SL company must file annual returns and accounts — failure to do so brings fines and registry blocks.
👨💻 Freelancer Tax Obligations in Ibiza
Freelancers (autónomos) are liable for both income tax and social security:
| Obligation | Form / Frequency |
|---|---|
| Register with AEAT | Modelo 036 or 037 |
| Quarterly IRPF | Modelo 130 or 131 |
| VAT filings (if applicable) | Modelo 303 (quarterly), 390 (annual) |
| Annual income tax | Modelo 100 |
| Social security payment | Monthly, starts at ~€230/month |
💡 You may qualify for the tarifa plana (flat-rate contribution) for the first 12–24 months.
📚 Bookkeeping & Accounting in Ibiza
| Business Type | Required Records | Filing Obligations |
|---|---|---|
| SL Company | Full accounting per PGC standards | Annual accounts, ledgers |
| Freelancer | Simplified ledgers (income/expenses) | Keep for 4–6 years |
| All Businesses | Spanish invoices with correct VAT | Archived & declared |
We offer cloud-based accounting using Holded, Quipu, or software of your choice — in full legal compliance.
👥 Hiring Employees in Ibiza
Hiring workers — especially during the busy summer season — requires following Spanish labor laws closely:
| Requirement | Details |
|---|---|
| Employer registration | With Social Security and TGSS |
| Spanish employment contract | Must be registered with SEPE |
| Monthly payroll & payslips | Includes salary, IRPF, SS contributions |
| Withholding tax declarations | Modelo 111 (quarterly), Modelo 190 (annual) |
| Health & safety compliance | Depending on activity |
📌 Ibiza labor inspectors frequently review hospitality, retail, and event-based employers — don’t cut corners.
🏛️ Local Municipal Taxes in Ibiza
| Tax | Applies To |
|---|---|
| IAE (Business Activities Tax) | Only if turnover exceeds €1M/year |
| Commercial waste tax | Based on premises and zone |
| Signage tax | For physical signage or banners |
| Opening licence (licencia de apertura) | Required for all physical business locations |
We liaise directly with Ibiza’s Ajuntament to ensure full compliance and avoid fines.
❌ Mistakes to Avoid
⛔ Missing quarterly filings — even in the off-season
⛔ Hiring temporary staff without legal contracts
⛔ Not registering for VAT when invoicing non-residents
⛔ Using English-only contracts or invoices
⛔ Operating without a business license in retail or food
🧑💼 Our Services for Tax, Accounting & Hiring in Ibiza
Borderless Lawyers provides:
✅ Tax ID registration (NIE, CIF, Modelo 036/037)
✅ Monthly accounting and VAT filings
✅ Annual tax returns and ledger preparation
✅ Labor contract setup and payroll filing
✅ Social security onboarding
✅ Business license and tax registration with Ibiza authorities
📞 Need Help with Tax or Payroll in Ibiza?
We make compliance smooth — so you can focus on running your business in paradise.
👉 Contact us now for full tax, accounting, and hiring support in Ibiza.