Spain’s tax forms 303, 111 and 130 for construction companies

Every quarter, a construction company in Spain fills in the same three forms as any other business: form 303 for VAT, form 111 for withholding and, if it is self-employed, form 130 for personal income tax. What changes is what goes inside them. Construction has its own rules (reverse charge, reduced rates, withholding on subcontractors under the flat-rate regime), and they are exactly the ones that cause the most mistakes.

Which form is filed by whom

Form	What it declares	Who files it
303	The quarter’s VAT: the VAT you have charged minus the VAT you have paid.	Every construction company, whether a company or self-employed.
111	The personal income tax (IRPF) withholdings you have made: payroll, professionals and subcontractors under the flat-rate regime.	Anyone who runs a payroll or withholds tax from professionals or subcontractors.
130	The personal income tax prepayment: an advance on the year’s income tax.	The self-employed under direct assessment. Companies don’t file it: their prepayment is the corporate income tax one (form 202).

A self-employed person taxed under the flat-rate “modules” regime (estimación objetiva) doesn’t file form 130 but form 131, with its own calculation.

Form 303 on a construction project: three rules that change everything

1. The reverse charge

In construction work for urbanization, building or renovation of buildings contracted between the developer and the contractor, VAT is not charged by whoever does the work: it is declared by whoever receives it. The rule extends to the main contractor and to every subcontractor in the chain.

In practice, the subcontractor invoices without VAT and the contractor “self-charges” it: it enters it on its form 303 as output VAT and, if entitled to deduct it, also as input VAT. The cash effect is zero, but if it is left out, form 303 is wrong.

Watch the scope: it applies between businesses and to construction, urbanization or renovation work. A renovation for a private individual doesn’t qualify, because the recipient isn’t a business.

2. The 10% rate on new-build housing

Construction work contracted directly between developer and contractor to build or renovate buildings used mainly as housing is taxed at 10%. “Mainly” has a number: at least 50% of the built area. It includes commercial premises, annexes, garages and installations in the same building.

3. The 10% rate on home renovations

Renovation and repair work on homes can also be taxed at 10%, but only if three conditions are met at once:

1. The client is a private individual who uses the home themselves, a homeowners’ association, or the owner of a home rented out as a primary residence.
2. The home was completed at least two years before the work starts.
3. The materials supplied by whoever does the work don’t exceed 40% of the taxable base.

And a payment condition that is often forgotten: payment must be made by card, bank transfer, crossed check or deposit into an account. If it is paid in cash, the reduced rate doesn’t apply.

The form is the same for everyone. What sets a construction company’s form 303 apart is the transactions that go into it.

Form 111: not just payroll

Form 111 covers all the personal income tax withholdings the company has made in the quarter. In a construction company there are usually three:

Who	Withholding	When
Employees on payroll	According to each person’s payroll	Always
Professionals: architect, building engineer, engineer	15% (7% in the first year of activity and the two following)	When they invoice as professionals
Self-employed subcontractors under the flat-rate regime	1%	Masonry, installations, plumbing, cladding and flooring, carpentry, painting and plastering

Source: Personal Income Tax Regulation, art. 95.1 and 95.6.

The 1% withholding is the one most often missed. It only applies if the subcontractor is taxed under the flat-rate regime: if they state in writing that they are under direct assessment, nothing is withheld, and that signed statement must be kept.

Form 130: the self-employed person’s income tax prepayment

A self-employed person under direct assessment prepays every quarter 20% of their cumulative net income since January 1, minus what they already paid in earlier quarters of the same year. That is why form 130 grows over the year: each quarter looks at the whole year again.

Quarter	Cumulative net income	20%	Already paid	To pay
Q1	€12,000	€2,400	€0	€2,400
Q2	€30,000	€6,000	€2,400	€3,600
Q3	€41,000	€8,200	€6,000	€2,200
Q4	€55,000	€11,000	€8,200	€2,800

The 70% exemption (not filing form 130 if at least 70% of income was subject to withholding) is for professional activities. A self-employed person who builds or renovates carries out a business activity and, as a general rule, doesn’t qualify.

Common mistakes worth checking every quarter

1. Applying 21% to new-build housing that qualifies for 10%, or 10% to a renovation that doesn’t meet the requirements.
2. Forgetting the reverse charge on subcontractors’ invoices.
3. Not withholding 1% from a subcontractor under the flat-rate regime, or withholding it from one under direct assessment.
4. Collecting payment for a renovation in cash and invoicing it at 10%.
5. Filing form 130 as a company, or not filing it as a self-employed person under direct assessment.
6. Calculating form 130 with the quarter alone, instead of with the year-to-date total.

Where FiscalCore fits

FiscalCore calculates a draft of forms 303, 111 and 130 as invoices and payroll are recorded, and alerts you to every due date. AI reads and classifies the documents; the calculation of the forms is deterministic and follows the tax rules. The drafts are for guidance only: they are not filed with the Spanish Tax Agency (AEAT); they let you reach the end of the quarter knowing what the result will be, and check your tax advisor’s work.

Division	What it brings here
CostPact	The budget with VAT calculated per line item according to its mix of materials and labor, and the invoices and progress certificates that later feed the forms.
PactStream	Payment for each milestone against verified progress, which is what comes into the cash from which taxes are paid.
FiscalCore	The drafts of forms 303, 111 and 130, tracking of due dates and the split of each payment into taxes, costs and profit.
PropertyJourney	When the project is a real estate development, the sales that start it and the handover and after-sales that close it.

Frequently asked questions

Does a construction company set up as an SL file form 130?

No. Form 130 is the personal income tax installment payment and is filed by the self-employed under direct assessment. A company makes its corporate income tax prepayments with form 202.

When are forms 303, 111 and 130 filed?

For the first three quarters, from the 1st to the 20th of April, July and October. For the fourth quarter, in January: form 111 by the 20th, and forms 303 and 130 by the 30th. Form 303 is monthly when the previous year’s turnover exceeded 6,010,121.04 euros.

Do you have to withhold income tax from a self-employed subcontractor?

Only if they are taxed under the flat-rate regime and their activity is among those listed in the regulation (masonry, installations, plumbing, cladding, carpentry, painting or plastering, among others). In that case the withholding is 1%. If they state in writing that they are under direct assessment, nothing is withheld.

What VAT rate applies to a home renovation?

10% if the client is a private individual who uses the home, the home is more than two years old, the materials supplied don’t exceed 40% of the base and payment is made through the bank. If any condition fails, 21%.

What is the reverse charge in construction?

A VAT rule under which, in urbanization, construction or renovation work between businesses, VAT isn’t charged by whoever carries out the work but declared by whoever receives it. The subcontractor invoices without VAT and the contractor includes it in its form 303.

A guide for orientation only: it doesn’t replace your tax advisor’s judgment. Sources, in their consolidated text: VAT Law 37/1992, arts. 84.One.2.º f) and 91.One.2.10.º and 3.1.º · VAT Regulation, art. 71 · Personal Income Tax Regulation, arts. 95, 108, 109, 110 and 111.

← All blog guides · Leer en español