Income Tax Return: What is it and when to submit it?
The Income Tax Return is a document that most citizens resident in Spain are obliged to file every year. The institution that collects these payments is the Tax Agency (Agencia Tributaria). This public body is responsible for applying and managing the country’s tax system.
The tax return filing period for residents runs from 7 April to 30 June 2021.
Not all citizens are obliged to do so. However, it is advisable to file the draft and check the result, as it may be favourable for the interested party. To the point of receiving financial compensation from the Tax Agency.
In the same way, it is important to mention that those who do have to comply with this tax and abstain from doing so, may face fines or financial penalties of up to 150% of the debt.
Who has to file it?
Individuals (whether Spanish or foreign) with residency in Spain.
People who lived more than 183 days in Spain between 1 January 2020 to 31 December 2020 are considered residents.
Income derived from work or funds, and possessions that are both in Spain and abroad, are taken into account when declaring. In other words, if one lives in a townhouse in Mijas, has a house in the UK and another in Australia, one is obliged to mention all 3.
Those who have been in an ERTE.
The year 2020 has been different to the others and this has raised doubts about the way in which to present the return. If one has been in ERTE, it means there were two sources of income: the employer and the SEPE (Servicio Público de Empleo Estatal). In this situation, one can ask for instalment payment.
Who is not obliged to file the tax return?
There are two main conditions that exempt a resident citizen from filing a tax return:
- Firstly, if the income does not exceed €22,000 gross per year and there is only one income source.
- Secondly, if the income does not exceed €14,000 gross per year and there are several income sources.
However, as mentioned at the beginning, even if you are not obliged to do it, it may be of interest to carry out the draft, as the result may be favourable, i.e.: refundable.
What is the easiest way to carry out this procedure?
The easiest and most efficient way to carry out this procedure is by means of a digital certificate. This is an electronic document that replaces conventional bureaucratic procedures, such as signing official documents, filing claims and appeals, and also filing the Income Tax return.
Obtaining a digital certificate is a free and very simple process that only requires 3 short steps. If you are interested in acquiring one, you can consult the procedure on the official website:
After acquiring it, you will have to access the Tax Agency, download the data and then view the draft tax return and notification.
We hope you have found this information useful. You can also confirm the tax return result calculated by the Tax Agency online, although many people prefer to pay a tax advisor in case they find a more favourable way, within the law, of declaring this income.