Income tax prepayment in Bizkaia: when you have to make it
Who has to do it and who doesn't.
In a nutshell
- The prepayment (pago fraccionado) is an advance on income tax that self-employed people make every quarter with form 130.
- In Bizkaia, in the year you start and the following one, it's calculated on what you earn each quarter.
- After that, on what you earned two years before, minus part of the withholding.
If you're self-employed, you don't wait until your income tax return to pay all your income tax (IRPF): you pay part of it in advance every quarter. That's called a prepayment and it's filed with form 130.
How it's calculated in Bizkaia
Bizkaia has its own way of calculating it, different from the rest of Spain:
- The year you start and the following one: 20% of what you earn each quarter (income minus expenses), minus that quarter's withholding.
- From the third year: 5% of what you earned in the year before last, minus 25% of that year's withholding.
- If you made a loss in the year before last: a small percentage of that year's sales.
- Agriculture, livestock, forestry and fishing: 2% of the quarter's sales.
When it's filed
Every quarter, on the same dates as VAT: in April, July, October and January.
If it comes to zero. Even if you have nothing to pay, you generally have to file it. Check your case, because there are exceptions.
What you pay in advance with prepayments is then deducted in your income tax return.
Frequently asked questions
If my invoices carry withholding, do I have to file form 130?
Withholding is subtracted from the payment, so it often comes to zero or very little. Check whether you still have to file it in your case.