Understanding the Modelo 111 Form in Spain: A Guide for Employers

Are you an employer in Spain wondering what the Modelo 111 form is and how to use it? In this post, we'll provide a guide to the Modelo 111 form in Spain and cover the essential information you need to know.

March 15, 2023
What is the Modelo 111 Form?

The Modelo 111 form is a crucial document used by Spanish employers to calculate and report their employees' tax obligations to the Spanish tax authorities. The form contains detailed information about the employee's gross income, taxable income, tax deductions, and tax withholdings. Employers must fill out this form accurately and submit it by the established deadlines to avoid penalties or fines.

Who needs to submit the Modelo 111 form?

In addition to employers, individuals who are self-employed or freelancers must also submit the Modelo 111 form to report their own income tax withholdings and payments. The form is used to report tax withholdings made to suppliers, clients, or anyone else who provides a service to the individual or company.

It's worth noting that non-Spanish residents who work in Spain for a short period of time may also need to submit the Modelo 111 form. In such cases, the employer or the individual must comply with Spanish tax laws, which require all income derived from a Spanish source to be reported and taxed accordingly.

How to Complete the Modelo 111 Form?

To complete the Modelo 111 form, you will need to provide the following information:

  1. Employer Information: Your company name, tax ID number, and contact information.
  2. Employee Information: The name and tax ID number of each employee or freelancer who has received payment from your company during the quarter.
  3. Income and Withholding Information: The total amount of income paid to each employee or freelancer during the quarter, as well as the amount of income tax withheld.
  4. Calculation of Total Tax Payable: Based on the information provided, the form will calculate the total amount of tax payable for the quarter.
  5. Submission of the Form: The completed Modelo 111 form must be submitted online through the Tax Agency's website or in-person at a Tax Agency office.
Important dates to remember

The Modelo 111 form must be submitted on a quarterly basis, with the following deadlines:

  • Quarter 1: April 20th
  • Quarter 2: July 20th
  • Quarter 3: October 20th
  • Quarter 4: January 20th
Penalties for non-compliance

Failure to submit the Modelo 111 form or submitting an incorrect form can result in penalties and fines. It is important to ensure that you are completing and submitting the form accurately and on time.

The bottom line

The Modelo 111 form is an essential tax form used by employers in Spain to report income tax withholdings and payments made to employees, freelancers, and other professionals. By understanding the information required and the important deadlines to remember, employers can ensure that they are compliant with Spanish tax laws and avoid penalties and fines.

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