How much should a Spanish freelancer set aside for tax each quarter?
There is no universal percentage. A more useful reference is the net VAT that would be payable plus the estimated form 130 income tax instalment. Enter quarterly figures for VAT and year-to-date figures for income tax.
VAT for the quarter (303)
Year-to-date income tax (130)
Reserve target
Set aside for this quarter
3200,00 €
- VAT portion
- 1680,00 €
- Income tax portion
- 1520,00 €
- Output VAT
- 2100,00 €
- Deductible input VAT
- 420,00 €
- Form 303 result
- 1680,00 €
- Year-to-date net profit
- 8000,00 €
- Estimated form 130 payment
- 1520,00 €
- Set aside for this quarter
- 3200,00 €
If VAT is negative, this estimate does not subtract it from income tax: it uses zero because the balance is normally carried into another period. Form 130 is cumulative and already deducts withholdings and earlier payments. Special regimes, reductions and every possible adjustment are not included.
Method and limitations
We calculate form 303 as output VAT minus deductible input VAT. For form 130, we apply 20 % to cumulative net profit, allowing hard-to-justify expenses where applicable and deducting withholdings and earlier instalments. The reserve is the sum of both positive results.
This is a quarterly provision, not your final annual income tax bill. The annual return depends on state and regional bands, personal circumstances, tax credits and other income. It also excludes special VAT regimes, pro rata deduction, cash accounting, OSS and earlier form 303 balances.
Official sources
The formulas are checked against current Spanish Tax Agency information for 2026:
Frequently asked questions
What percentage of each invoice should I save?
No single percentage works for everyone. VAT depends on the rate and deductible costs; income tax depends on profit, withholdings and earlier payments. Calculating both parts avoids a fixed 20 %, 25 % or 30 % being too low or unnecessarily high.
Is the VAT I collect my income?
Not for this reserve: output VAT is collected to settle with the tax agency, after deducting eligible input VAT. Keeping it separate helps you avoid spending it as available cash.
What if my invoices carry income tax withholding?
Withholding is already an advance paid by your client and reduces form 130. If at least 70 % of qualifying professional income is subject to withholding, you may not be required to file form 130.
Why does form 130 use year-to-date figures?
Each quarter recalculates from 1 January. Cumulative withholdings and instalments from earlier quarters are then deducted to work out the amount due now.
Aurio calculates this for you from your transactions and invoices
Import your statements or add your invoices and keep your quarterly VAT, estimated form 130 and depreciation always up to date. Informative, private and with your data encrypted.
Get started for freeIndicative, informational calculations: they are not tax advice and Aurio never files anything with the Spanish Tax Agency (AEAT). Check amounts and deadlines against current regulations or with your advisor.