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Running payroll and withholding tax in Spain

What a Spanish employer does when paying an employee or a freelancer. The payslip from gross to net: the worker's 2026 contributions, the IRPF withholding procedure and a company car as a benefit in kind. Then severance when a contract ends or on dismissal and its exempt part, the 15 % or 7 % withholding on a professional's invoice, and paying in everything withheld with modelo 111: deadlines, boxes, nil returns. Two modules with case studies.

Intermediate2 modules46 minFree course

2026 rules — verified on October 7, 2026

Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.

This content is part of the path: Paying an employee or a freelancer in Spain· Step 1 of 6· Next step: Spanish net salary — from annual gross to take-home pay

By the end of this course, you can…

These outcomes are the modules' own: the promise cannot say anything the course does not teach.

  • Identify who must withhold tax and what the payslip documents under the Workers' Statute
  • Work out the contributions borne by the employee with the 2026 rates and the monthly ceiling
  • Follow the IRPF Regulation procedure that turns an annual gross salary into a withholding rate
  • Value the use of a company car as a benefit in kind and know which payment on account it triggers
  • Move from a given payslip to the amounts the business will pay in afterwards
  • Compute the statutory compensation when a fixed-term contract ends and on an objective or unfair dismissal
  • Tell the exempt part of a severance payment apart and explain why it carries no withholding
  • Apply the 15 % or 7 % withholding to a freelance professional's invoice
  • Determine whether modelo 111 is filed quarterly or monthly, and by when
  • Fill in the main boxes of modelo 111 and recognise when it is a nil return or is not filed at all

The programme, module by module

Each module has its own page. Durations are derived from the actual text, never announced by hand.

  1. Module 124 minFree — no accountThe Spanish payslip: from gross to net, with contributions, withholding and benefits in kindWhat you will be able to do
    • Identify who must withhold tax and what the payslip documents under the Workers' Statute
    • Work out the contributions borne by the employee with the 2026 rates and the monthly ceiling
    • Follow the IRPF Regulation procedure that turns an annual gross salary into a withholding rate
    • Value the use of a company car as a benefit in kind and know which payment on account it triggers
    • Move from a given payslip to the amounts the business will pay in afterwards
    Read this module
  2. Module 222 minFree — no accountEnding a contract, freelancers' invoices and paying in with modelo 111What you will be able to do
    • Compute the statutory compensation when a fixed-term contract ends and on an objective or unfair dismissal
    • Tell the exempt part of a severance payment apart and explain why it carries no withholding
    • Apply the 15 % or 7 % withholding to a freelance professional's invoice
    • Determine whether modelo 111 is filed quarterly or monthly, and by when
    • Fill in the main boxes of modelo 111 and recognise when it is a nil return or is not filed at all
    Read this module

What you take away

A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.

  • Participant handout (PDF)

    PDF

    • Learning objectives (2)
    • Key figures (11)
    • Mistakes to avoid (2)
    • Official sources (2)

  • Exercise workbook (Word)

    Word

    • Learning objectives (2)
    • Key figures (11)
    • Mistakes to avoid (2)
    • Official sources (2)

Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.

Download the handouts

Where this course leads

A course that leads neither to a calculator nor to a form cannot be published: this block is the visible counterpart of that rule.

Run the numbers

The linked calculators apply this course's rules to your own figures — for free.

File it

Step-by-step guides to the official forms cited in this course.

Read in Spanish

Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.