Objective estimation (modules) — Non-agricultural activities

• Submitted using Form 036 (census return).
• The general deadline is December of the year before the waiver is to take effect (e.g. 1 to 31 December 2024 for a waiver effective in 2025).
• Upon starting an activity: when submitting the census registration form.

DANA 2024 exception: Taxpayers in municipalities affected by DANA (Royal Decree-Law 6/2024) who waived in 2024 may return to the method in 2025 without meeting the three-year binding period (Art. 12 Royal Decree-Law 7/2024). → Full guide: DANA aid and its taxation.

A waiver is deemed to have been made when the first-quarter instalment payment is submitted on time (by 20 April) in the manner applicable to direct estimation.

At the start of an activity, the tacit waiver occurs when the first-quarter instalment payment is made in the direct estimation manner.

• The taxpayer is compulsorily subject to the direct estimation method (applicable type) for all their activities for a minimum of three years.
• After that period, the waiver is tacitly renewed unless revoked in December of the year before the following year begins.
• If in the year before the waiver is to take effect the exclusion quantitative limits were already exceeded, the waiver is treated as not submitted.

🟡 Important: Royal Decree-Law 16/2025 of 23 December extends to 2025 and 2026 the same limits that have been in force since 2016.

Additional rules:

• If the activity started in the previous year, the volume is annualised.
• Current or capital subsidies, compensation and VAT/equivalence surcharges in simplified regimes are not counted.
• Transactions with related parties (Art. 18 Corporate Income Tax Law) are valued at market value.
• To calculate these limits, the taxpayer's transactions and those of their spouse, descendants and ascendants carrying on identical or similar activities with shared management or means are added together.

If the gross income or purchases volume is exceeded, the taxpayer is excluded from the method for all their activities for at least the three following years.

Exclusion takes effect in the year immediately following the one in which it occurs and means three years in the simplified direct estimation method.

Urban collective transport, taxi, goods transport and removal activities are deemed to be carried out entirely within Spanish territory for the geographical ground purposes.

When a new activity not included or waived is started in a year, the incompatibility with direct estimation does not take effect that year for activities already carried on; it applies from the following year.

(*) Computable on any day of the year.

Ancillary activities: Activities whose income does not exceed 40% of the main activity's income are understood to be included within each activity.

Module units used × Annual return per unit (before depreciation)
= Previous net income

The amounts for each module for 2025 are set out in Annex II of Order HAC/1347/2024.

"Non-salaried staff" module

• The owner always counts as 1 non-salaried person. If less than 1,800 h/year of actual work can be demonstrated due to objective reasons (retirement, incapacity, multiple activities, temporary closure), actual time is used.
• The spouse and minor children who work at least 1,800 h/year count as 1 person; if they work fewer hours, they are prorated.
• Special rule: the spouse or minor children count at 50% when the owner counts in full and there is no more than 1 salaried person.
• Disability ≥ 33%: non-salaried staff in this situation count at 75%.

"Salaried staff" module

• A person is salaried if they work in the activity without being non-salaried (including agency workers).
• One salaried person equals the hours fixed in the collective agreement or, failing that, 1,800 h/year.
• Under 19 years old or on an apprenticeship or training contract: counted at 60%.
• Disability degree ≥ 33%: counted at 40%.
• Vocational training students on placements do not count. Grant holders count as salaried staff.
• Under a reduced-hours ERTE, the module is quantified based on the number of hours actually worked.

Other common modules

Previous net income
(-) Reduction for employment incentives
(-) Reduction for investment incentives (depreciation)
= Reduced net income

Employment incentives: a reducing coefficient is applied to the annual return per unit of the "salaried staff" module, with two components:

• For increases in the number of salaried persons compared with the previous year: coefficient = 0.40 × increase in units.
• By tranche based on the number of module units:

Investment incentives (depreciation): the maximum straight-line coefficients set in the tables of Order HAC/1347/2024 are applied. New tangible fixed assets with a unit value not exceeding €601.01 may be freely depreciated, provided the total acquired during the year does not exceed €3,005.06.

Reduced net income
(×) Applicable correction indices
= Module net income

The most common correction indices are:

Incompatibilities: the small business index is not applicable when special correction indices exist, except for newspaper kiosks.

Correction indices are applied in the order in which they appear in the return, to the reduced net income or to the result of applying the previous indices.

To reduce modules for exceptional circumstances (flood, temporary incapacity, etc.), the Tax Agency must be notified within 30 days of the event, with supporting documentation and mention of any insurance compensation.

Module net income
(-) General 5% reduction (applicable in 2025 to all module taxpayers)
(-) Extraordinary expenses due to exceptional circumstances (notified to the Tax Agency on time)
(+) Other business income (current and capital subsidies)
= Activity net income

The general 5% reduction is maintained for 2025 pursuant to DA 1ª of Order HAC/1347/2024.

Current and capital subsidies: attributed in the tax period in which the final award resolution is issued (when the award is definitively recognised and quantified), regardless of when payment is received.

Note on repayment: if a subsidy is returned, the repayment follows the same temporal imputation criterion.

The following are taxed as current subsidies (subject and exempt under DA 5ª Personal Income Tax Law):

• Direct aid to companies and self-employed persons affected by DANA (Art. 11 Royal Decree-Law 6/2024) when used to repair asset elements.
• Direct aid to the road transport sector (Arts. 34 RDL 20/2022 and 156 RDL 5/2023).

Activity net income
(-) 30% irregularity reduction
= Reduced net income of the activity

The 30% reduction applies only to the "other business income" component when:

• The generation period is more than 2 years and is attributed in a single tax year, or
• Income is obtained in a notably irregular manner: capital subsidies for non-depreciable fixed assets, compensation for cessation of activity or in substitution of indefinite-duration economic rights.

Limit: The maximum base to which the 30% applies is €300,000 per year.