The problem with the quarter is never what you pay. It is that the money is already gone. Setting aside properly means separating three different things every time you get paid: the IVA, a share for IRPF and the month's quota. Here is the rule and a worked example.
| Item | To a company (15% withholding) | To an individual |
|---|---|---|
| Received | 1,060 € | 1,210 € |
| IVA to set aside | 210 € | 210 € |
| IRPF to set aside | 50 € | 200 € |
| Total set aside | 260 € | 410 € |
| Yours | 800 € | 800 € |
When you invoice 1,000 € plus 210 € of IVA, you collected 1,210 € but you earned 1,000 €. The 210 € belong to Hacienda and only pass through your account. Set them aside the day they land, all of them. You will later subtract the IVA on your deductible expenses, so you will pay less than you set aside, but setting aside too much never hurts.
The IRPF instalment is 20% of cumulative net profit. If you invoice companies and your invoice carries 15% withholding, that part is already advanced and you only need another 5% of the base. If you invoice individuals there is no withholding and you set aside the full 20%. New professionals can apply 7% withholding in the year they register and the two following, in which case set aside the remaining 13%.
The RETA quota is paid monthly, not quarterly, and it is a deductible expense. In 2026 it runs from about 205.88 € to about 607.31 € depending on your income band. If your income is irregular, set aside the quota for the slow months during the good ones.
Base 1,000 €, IVA at 21% of 210 €, withholding at 15% of 150 €. The client transfers 1,060 €. Of those 1,060 €, 210 € are IVA you set aside. Of the 20% IRPF (200 €), the client has already paid 150 € on your behalf, so you set aside another 50 €. Total set aside: 260 €. Actually yours: 800 €. That is 24.5% of what landed in the account.
With no withholding the client pays 1,210 €. You set aside 210 € of IVA and 200 € of IRPF. Total set aside: 410 €, 34% of what you collected. Yours: 800 €. Notice that what you keep is the same in both cases. What changes is how much passes through your account before leaving.
What works is a separate account you transfer to on the day you get paid. It does not need to earn interest. It needs to be invisible when you check how much you have. Fider shows your freelance wallet with the quarter's accumulated IVA and the estimated 130, so the balance you look at already excludes what is not yours.
The annual return can come out as a payment if your marginal rate exceeds 20%, which happens from middle incomes upward. If you earn more than roughly 30,000 € net, consider setting aside 25% or 30% instead of 20%. And if you have income from other sources (a salary, a rental), the June settlement can surprise you.
100% of the IVA plus 20% of the base minus any withholding already on the invoice. With 15% withholding and 21% IVA, about 24.5% of what you collect. Without withholding, about 34%.
Yes, on modelo 303 you subtract deductible input IVA. That is why setting aside all the IVA you collect leaves a margin: you will pay less than you set aside.
Yes, all the IVA and the gap between 20% and the withholding. With 15% withholding you still need to set aside 5% of the base.
No, it is paid monthly by direct debit. It still pays to set it aside in good months if your income is irregular.
20% is the payment on account. Your actual rate on the annual return can be higher. Above roughly 30,000 € net, setting aside 25% to 30% avoids surprises in June.
In a separate account you transfer to on the day you get paid. What matters is not seeing it when you check what you can spend.
Free, no card and no bank connection.
Create a free account