Self-employed individuals may combine objective and direct estimation in the year a new activity begins

The determination of income from economic activities for Personal Income Tax (IRPF) is usually subject to incompatibility rules between the different calculation methods. However, the Dirección General de Tributos (DGT) has specified the scope of these limitations when a taxpayer decides to diversify their economic activity during the same fiscal year.

What the DGT has resolved

The ruling addresses the possibility of simultaneously applying objective estimation and direct estimation within the same calendar year. The criteria establish that, in the fiscal year in which an economic activity is started that is not included in the objective estimation regime, the incompatibility between both methods does not take effect immediately.

This means that the taxpayer has the power to:

• Determine the income from their previous activity using the objective estimation method.
• Determine the income from the new activity using the direct estimation method.

The regulations applicable to this resolution include Royal Decree 439/2007 (RIRPF) and Order HAC/1425/2025. The DGT clarifies that the total incompatibility, which prevents the use of objective estimation for all of the taxpayer's activities, will only take effect from the year following the start of the new activity.

What this means for you

If you are a self-employed individual currently paying taxes via objective estimation (modules) and you decide to undertake a new activity that requires or prefers the direct estimation method, you will not have to choose a single method for your entire set of activities during that first year. You will be able to maintain the module structure for your current business and keep the accounts for the new activity using the direct method without committing a regulatory infraction.

What should you do

In this scenario, it is necessary to analyze the nature of the new activity and its impact on the IRPF tax return. Since the incompatibility will consolidate in the following fiscal year, you must evaluate whether the new activity will permanently maintain its direct estimation status or if a transition toward a single model is intended. It is fundamental to assess each particular situation to ensure that the coexistence of methods aligns with the taxpayer's economic reality.