🧾 What Taxes Do Businesses in Málaga Pay?
Whether you’re a company or freelancer, the following taxes typically apply:
| Tax Type | Applies To | Frequency |
|---|---|---|
| Corporate Tax (IS) | SL companies | Annual (Modelo 200) |
| Income Tax (IRPF) | Freelancers (autónomos) | Quarterly (Modelo 130), Annual (Modelo 100) |
| VAT (IVA) | Most businesses | Quarterly (Modelo 303), Annual (Modelo 390) |
| Withholdings (IRPF) | Employers & freelancers | Quarterly (Modelo 111), Annual (Modelo 190) |
| Informative Declaration | All (if thresholds met) | Annual (Modelo 347) |
We manage all filings and ensure no deadlines are missed.
💼 Corporate Tax for SL Companies in Málaga
| Description | Details |
|---|---|
| Standard rate | 25% |
| Startup rate | 15% for first 2 years with profit |
| Form | Modelo 200 (due in July) |
| Advance payments | Modelo 202 (3x per year) |
| Even zero-activity companies | Must file every year |
📌 You need Spanish-compliant books, signed annual accounts, and filing with the Málaga Mercantile Registry.
👨💻 Income Tax for Freelancers (Autónomos)
| Description | Details |
|---|---|
| IRPF tax regime | Direct estimation (default) |
| Quarterly filing | Modelo 130 |
| Annual filing | Modelo 100 (personal income tax return) |
| Withholdings | May apply to B2B invoices (typically 15%) |
| Social Security | Monthly contributions starting ~€230 |
💡 Some autónomos may qualify for a €80/month reduced rate during their first year.
📊 VAT (IVA) Rules in Málaga
| Type of Activity | VAT Treatment |
|---|---|
| Selling to Spanish clients | Charge 21% VAT |
| Selling to EU businesses | Reverse charge if VIES registered |
| Selling to EU consumers | Charge VAT or use OSS scheme |
| Exporting outside EU | Usually VAT-exempt |
| Freelancers & service providers | Must register for VAT unless exempt |
📌 We register clients for VAT and the EU VIES system when required.
🧮 Accounting Requirements
| Entity Type | Obligations |
|---|---|
| SL Companies | Official books, daily ledgers, annual accounts, PGC format |
| Freelancers | Simplified ledgers, income/expenses tracking |
| Both | Quarterly and annual tax forms, digital signature needed |
We manage accounting using platforms like Holded, Quipu, and Xero (Spanish-compliant setup).
👥 Hiring Employees in Málaga
| What You Need | How We Help |
|---|---|
| Digital certificate | We obtain it on your behalf |
| Payroll software or provider | We provide integrated payroll |
| Social Security registration | We manage Alta and monthly filings |
| Labor contract in Spanish | Drafted and registered properly |
| Payroll withholdings & IRPF | Filed via Modelo 111 + 190 |
💡 Employment law in Spain favors the employee — we help you stay compliant and avoid fines.
🧾 Local Taxes in Málaga
| Tax | Applies To |
|---|---|
| IAE (Economic Activities Tax) | Businesses with > €1M turnover |
| Garbage/Commercial Waste Tax | Office & retail properties |
| Signage/Advertising Fees | Storefronts and physical locations |
We register your business with the Málaga Ayuntamiento when needed.
❌ Common Mistakes with Tax & Hiring
⛔ Filing Modelo 200 late — even with €0 activity
⛔ Not applying for VIES when invoicing EU clients
⛔ Forgetting to file Modelo 390 (annual VAT summary)
⛔ Hiring staff without registering with Social Security
⛔ Using English-only contracts (not legally valid in Spain)
🧑💼 Our Tax & Payroll Services in Málaga
Borderless Lawyers provides:
✅ VAT & IRPF registration
✅ Quarterly and annual Modelo filings
✅ Full accounting and bookkeeping
✅ Payroll & employment contracts
✅ Annual accounts and Mercantile Registry filings
✅ Remote setup with Power of Attorney
📞 Running a Business in Málaga? Stay Tax Compliant with Our Help.
We handle your filings, staff, and books — in English — so you can focus on growing your business.
👉 Contact us for full tax, accounting, and payroll services in Málaga.