When you pay a salary or a professional's invoice with withholding, you do not pay the full amount: you keep back a portion that actually belongs to the tax agency. Modelo 111 is how you hand over that money each quarter. It is not your own tax but money held for others, so do not treat it as available cash.
Only those who pay employees or professionals subject to withholding are required to file it, not every self-employed person. A common example: a small SL hires a freelance designer and an adviser. Both issue invoices with IRPF withholding; the SL pays the net amount and reports the withholding in the Modelo 111 for the quarter in which it pays.
The typical mistake is applying the withholding on the invoice and then forgetting to file the return, or reporting it in the quarter of the invoice date instead of the payment date. If you fail to withhold when you should have, the tax agency can claim the missing amount from you.
Modelo 111 is summarised each year in an annual informative return that breaks the withholdings down by recipient and feeds each person's draft income tax return. In the books, withheld amounts sit as a debt to the tax agency until you pay them.In kontora the forms are prepared box by box from your double-entry books, with deadline reminders, and you file them from the app itself with your digital certificate (303, 130, 111, 115 and 123 by direct filing; 349, 347, 190, 180 and 193 through TGVI), or your adviser does.
Guides that use this term
- How to fill in modelo 111 box by box: 2026 instructions with a worked example
- Modelos 111 and 115: Spanish withholdings explained
- Modelo 123: withholding on dividends and interest paid by your SL
- How to pay yourself from your own Spanish SL: director's remuneration, invoice or dividend
- How to fill in the modelo 036 box by box: registering as an autónomo or an SL, IAE heading, ROI, changes and deregistration
Related terms
Rather have this calculated for you?
kontora generates your tax forms box by box, tells you how much to set aside and reminds you before every deadline.