Who pays IAE, and who does not
The tax on economic activities is not due just because you have a heading. The local tax act separates the classification from the charge.
Individuals are exempt
If you are an individual, you are exempt from paying IAE. That does not remove the heading: the activity is still declared on the census. The exemption is from the charge, not from registration or from the classification.
- An individual is exempt from paying IAE.
- The heading is still declared.
- The exemption does not replace the census.
When a company can owe it
A company can owe IAE when its turnover passes the 1,000,000 euro threshold in the local tax act. Below that threshold the act also provides an exemption. The activity heading is declared even when there is no charge to pay.
Common questions
If I am an individual autónomo, do I pay IAE?
No. Individuals are exempt from paying IAE. The activity heading is still declared on the census.
From what turnover can a company owe IAE?
The local tax act sets the threshold at 1,000,000 euros of turnover. The heading is declared even when the company pays no charge.
Official sources
Informational text reviewed on 26 September 2026. It is not tax advice and does not replace the Spanish Tax Agency or your accountant. Deadlines, rates, and forms can change.