Modelo 347 in Spain: What Expats With Businesses Need to Know in 2026

Running a company or working as self‑employed in Spain means dealing with more than just quarterly VAT and annual income tax. One of the key pieces in the Spanish tax reporting puzzle is Modelo 347, an annual informative return used by the Tax Office to spot inconsistencies and possible undeclared activity between businesses.

For the 2025 tax year, reported in 2026, there is an extra twist: the form now includes new reporting fields for subsidies and grants, which makes it even more important to understand how it works and whether it affects you.

What exactly is Modelo 347?

Modelo 347 is an annual informative declaration where businesses and autónomos report all transactions with any single client or supplier that exceed 3,005.06 euros (VAT included) in the calendar year.

You do not pay tax through this form. Instead, you are listing significant business relationships so that the Agencia Tributaria can cross‑check what you report against what your customers and suppliers report about you. If the numbers do not match, it can trigger queries or inspections.

For expats, the key points are:

• It applies to operations related to your economic activity in Spain, not to your private life.
• The threshold is calculated per counterparty per year, not per invoice.
• The form breaks transactions down by calendar quarter, which means your bookkeeping needs to be clean and well organised.

Who has to file Modelo 347?

You are normally required to file Modelo 347 if you meet all of the following:

• You run a business or professional activity in Spain (company or autónomo).
• In a given year you have transactions over 3,005.06 euros with a particular client or supplier.
• You are not fully covered by one of the exemption categories.

Entities that are usually obliged to file include:

• Limited companies and other trading entities.
• Self‑employed professionals (autónomos).
• Associations and other organisations that carry out economic activities.
• Public bodies that contract goods and services.

Who is exempt?

Some taxpayers do not have to file the form, including:

• Businesses that use the SII (Immediate Supply of Information) system for VAT.
• Those whose operations with every single client and supplier remain below the 3,005.06 euro threshold in the year.
• Certain taxpayers in the simplified VAT regime, except for specific transactions that must still be declared.
• Businesses whose transactions fall exclusively within the list of operations excluded from Modelo 347.

If you are an expat with a small side activity and never exceed the threshold with any counterparty, you may be out of scope, but it is still essential to monitor your figures during the year.

What’s new for the 2025 period reported in 2026? Focus on subsidies and grants

For the 2025 reporting year, whose Modelo 347 is submitted in February 2026, the form incorporates a new section for subsidies and grants.

• Public administrations now have to report aid using a specific code from the National Database of Subsidies (BDNS).
• This BDNS reference is checked against the information provided in tax returns by the recipients of those subsidies.
• If a BDNS number exists, it must be used; if not, the field is completed with zeros.

This change does not create a new reporting duty for private recipients beyond what the rules already required. It does, however, give the Tax Office an extra tool to cross‑check who has received subsidies and whether these have been correctly reflected in tax returns.

For expat entrepreneurs who received Spanish grants during 2025 (for example, innovation or digitalisation subsidies), this cross‑checking makes accurate record‑keeping even more critical.

Transactions that are excluded from Modelo 347

Although the basic rule says that any relationship over 3,005.06 euros must be reported, certain operations are deliberately left out because they are already declared elsewhere.

You should not include in Modelo 347:

• Professional income subject to withholding tax, both the withholdings you apply on your invoices and those you receive; these are reported on Modelo 190.
• Rental income/payments with withholding tax on leases, which go on Modelo 180.
• EU cross‑border supplies of goods and services, already included in Modelo 349.

The idea is simple: the Tax Office avoids double reporting, and you avoid doing the same work twice. But you must still check that the remaining operations above the threshold are correctly captured in Modelo 347.

Why Modelo 347 matters to you as an expat

For many foreign business owners in Spain, Modelo 347 feels like “just another form”. In reality, it is an important risk management tool – both for the Tax Office and for you.

How the Tax Office uses it

• It compares the amounts declared by you with the amounts declared by your suppliers and clients.
• Inconsistencies can raise a red flag and may lead to requests for clarification or inspections.

How you can use it

• Preparing Modelo 347 forces you to reconcile your accounting with the data in your invoices.
• It can help you detect missing invoices, double postings or mis‑classified operations before the Tax Office does.

For expats who may already be dealing with language barriers and unfamiliar systems, using Modelo 347 as a yearly health check on your Spanish books is actually an advantage.

When and how do you submit Modelo 347 in 2026?

• Method: Filing is done online through the Agencia Tributaria’s electronic office using a digital certificate, Cl@ve system or authorised representative.
• Deadline for the 2025 period: The form must be submitted during February 2026. Because 28 February 2026 falls on a Saturday, the effective deadline is extended to Monday 2 March 2026.

The declaration breaks down the 2025 annual total for each client or supplier into quarterly amounts, so your accounting software and bank reconciliations need to allow you to filter per quarter.

Common mistakes and penalties

Failing to comply with Modelo 347 obligations carries financial risk.

Typical errors include:

• Missing some clients or suppliers who cross the threshold.
• Confusing the taxable base with the total invoice amount including VAT.
• Allocating invoices to the wrong quarter.
• Importing data from accounting software and not properly checking it.

If you do not file the form, file it late or include inaccurate information, the Tax Office can impose fines per incorrect or missing record, which can add up quickly.

For expat‑run businesses, where bookkeeping is sometimes outsourced or split between countries, clear communication with your accountant is vital to avoid these problems.

Practical tips for expats dealing with Modelo 347

1. Set up tracking from day one

Configure your accounting software to flag when any client or supplier exceeds the 3,005.06 euro threshold during the year.

2. Reconcile with key partners before filing

At year‑end, compare your figures with major clients or suppliers and correct any mismatches before submitting the form.

3. Check how your VAT is reported

If you are in the SII system or mainly deal in operations that are declared on other informative forms, confirm with your adviser whether you are exempt from Modelo 347.

4. Document subsidies properly

Keep copies of all grant approval letters and BDNS references so you can match what public bodies report about you.

5. Use professional help where needed

Spanish tax rules are technical, and Modelo 347 interacts with several other forms. A Spanish tax adviser can ensure everything is aligned and minimise the risk of queries.

Key takeaways for 2026

• Modelo 347 is an informative, not a payment, obligation – but the information you provide is central to the Tax Office’s control systems.
• It applies where your annual transactions with a single counterparty go beyond 3,005.06 euros (VAT included).
• For the 2025 period reported in 2026, there is enhanced focus on subsidies and grants through the BDNS reference system.
• Good bookkeeping and timely reconciliation reduce the risk of fines and unwanted attention from the Agencia Tributaria.

For expats running companies or working as autónomos in Spain, taking Modelo 347 seriously is a simple way to stay off the Tax Office’s radar and keep your Spanish business life as stress‑free as possible.