5 % Allowance in Modelo 130 (Simplified Direct Estimation)

Under simplified direct estimation, the law allows a deduction of 5 % of net income (revenue minus ordinary deductible expenses) to cover everyday business expenses that are real but difficult to formally document: minor office supplies, small tools, low-cost subscriptions, undocumented communications expenses, etc.

You need no receipt to claim it — it is a lump-sum deduction recognised by the IRPF regulations themselves (Art. 30.2.4.ª LIRPF). The cap is €2,000 per year, regardless of how much you earn.

The allowance is applied quarterly in Modelo 130, proportional to the cumulative net income for the year.

You can apply it if:

• You are taxed under simplified direct estimation (the most common regime for freelancers with income below €600,000/year).
• Your net income for the quarter is positive — if you have losses there is nothing to apply 5 % to.
• It is your main or secondary economic activity as a self-employed individual.

You cannot apply it if:

• You are in normal direct estimation (for income above €600,000).
• You are in objective estimation (módulos).
• Your activity is property rental — it has its own separate rules.

In Modelo 130, the allowance appears in box [07] of section I:

• It does not replace your actual expenses. You can deduct documented expenses and also apply the 5 % allowance — it is additional, not an alternative.
• Do not confuse with the 20 % new-activity reduction. That is a separate reduction for the first year with positive net income.
• The €2,000 cap is annual, not quarterly. Autónomo Simple tracks this automatically so you never exceed it.

Autónomo Simple applies the 5 % allowance automatically when calculating your quarterly Modelo 130. You do not need to enter anything — the app detects your regime, calculates the net income for the period, and applies 5 % while respecting the cumulative €2,000 annual cap. You can enable or disable the allowance under Settings → Tax → 5 % Allowance.