Some tax payers can make a business and pay their taxes on a fixed base, whatever they would be earning. It is called “estimación objetiva” or “módulos”.

Only self employed people, with an annual turnover of less than 450.000 €, can choose this system. If you have several activities, you have to work with the “módulos” for all these activities.
The taxes to be paid ahead are:
2% of the tax base if you are working alone
3% if you have 1 employee,
4% in other cases (remember that self employed people working on real basis pay 20% of their benefits)
The tax base is automatically calculated with a programme that you can download from http://www.aeat.es; it depends on
* the area were you are located
* the number of hours you are working
* the number of hours made by your employees,
* the consumption of electricity,
the number of tables (for a restaurant)
Activities generally are for small businesses; the economic nomenclature (“epígrafe”) are agriculture, bakery, chocolate, construction, etc.
You can always, end of the year; give up this system for the “real basis” one (“estimación directa/ simplificada”) but then this choice is made for at least three years.
The advantage of the system is that you know exactly what amount will be paid every quarter (exactly the same).
The disadvantage is that you will have to pay your taxes… also if you had NO activity.
Some people say another advantage is that you do not need an accountant; but do not forget that above the “modelo 131” that other tax forms will have to be filled in, such as “modelo 115” (if you are renting your premises). And if this was not properly done, Hacienda could fine you severely.
Stéphane Mercier

Administrador Expertos de Tenerife S.L. - C.C San Eugenio - Local 99
38660- San Eugenio (Adeje, Tenerife) TLF- 922713851 / FAX- 922716386