The ‘declaracion de la renta’ is the personal income tax return in Spain.  It is completed by filing the Modelo 100 tax declaration form.

Who has to File a Declaracion de la Renta Personal income Tax Return in Spain

All Spanish residents are obliged to declare the income that they recieve.  This includes income arising outside of Spain.  There are some allowances and exceptions.  For example:

• You are employed or recieving a pension from one payer below €22,000 per year
• You have earned income from more than one source e.g. pensions, less than €14,000 per year

Savings interest of less than €1,600 does not have to be declared and the general personal allowance is €5,550 for under 65’s and €8,700 for over 65’s receiving a pension.

Read more about tax in Spain and allowances.

When does the Declaracion de la Renta Personal income Tax Return have to be filed?

The tax year in Spain runs with the calendar year, i.e. from 1st January to 31st December.  The personal income tax declaration is filed from early April to the 30th of June the following year.

Spain’s tax office provides information about the campaign here: https://sede.agenciatributaria.gob.es/Sede/en_gb/Renta.html

Any tax that is due has to be paid by the 30th of June and it is possible to split the payment into two instalments interest free, 60% paid immediatley and 40% paid in November. Monthly instalments by direct debit over longer periods are also possible however this does incur a small amount of interest

Do I need to do a Joint Declaracion de la Renta Personal Income Tax Return

In a household for example, where a married couple has one one with income and the other without, part of the ‘unused’ tax allowance can be made use of by completing a joint tax return.

If both have income, thhe tax office system has a similutor which allows you to check whether the tax outcome will be better, joint or single returns.  The accountant or gestoria submitting the return should always check which way will result in the lowest tax bill.

Documents & info needed to complete a Personal Income Tax Return

For and accountant or gestor submit a return on your behalf you will need to be registered with the tax office as a resident and they need the following:

• Your digital certificate
• TIE front and back / both sides of your residency certificate
• Cadastral reference of your home address.
• Your Spanish bank IBAN

The cadastral reference can be found on the IBI bill. If you are renting, you also need to provide the property owner / landlord’s DNI or NIE.  This information should be found in your rental contract, if not you will need to ask your landlord or rental agent for this.

If you don’t have a Spanish Bank account, or it is not registered with your NIE number, (e.g. non-resident account, then it will not be possible to set up for your tax to be paid by direct debit.  If you are not yet registered with the Spanish tax office, this will also need to be done.

What has to be included in your Personal Income Tax Return

Your main / regular income – pensions, salary, rent etc
Secondary / other income – interest from savings, dividends, capital gains (property or shares sold with a profit / loss)

Note for UK income*. As the Spanish tax year runs from January to December, there is a 3 month overlap with the UK tax year which runs April to April.  If your regular income has changed from one UK tax year to the next, the income reported for the Spanish tax year, will be the last 3 months of the previous UK tax year, and then 9 months of the current UK tax year.

Income to be declared is either calculated on a pro-rata basis from the figures on the last 2 annual tax certificates (P60’s), or using payslips or pension payment advice letters.

*Similar will apply for income from other countries that do not have calendar year fiscal years.

If you have rental income to declare, expenses relating to the letting of the property can be taken into account, however must be evidenced by receipts or invoices issued by registered companies or registered tradespeople.

Need help with your personal income tax declaration or not sure if you need to do one?  Use our online form to provide the information needed to check, get an assesment or request assistance preparing and submitting your return.

Spanish Tax Return Assessment / Registration

Related reading:

Overseas Assets Declaration and Modelo 720

Making Your First Tax Declarations in Spain

1. What is Modelo 720?

Modelo 720 is a mandatory tax form in Spain for tax residents to declare assets held outside Spain if they are above a certain value.

2. Who is required to file Modelo 720?

Any individual or entity that is a tax resident in Spain and holds assets abroad exceeding the reporting limits must file this declaration.  When you move to Spain, you complete it the year after you become tax resident.

3. What are the declaration thresholds?

The Modelo 720 must be filed if the total value of assest in three categories exceeds €50,000. If previously declared, updates are required only if the value has increased or decreased by more than €20,000.

After moving to Spain your first tax declarations are due the year after you become tax resident in Spain.  The tax year in Spain runs with the calendar year, 1st January to 31st December and the basic rule is that you become tax resident when you’ve spent 183 days in the year in Spain.

Your tax obligations arise for the fiscal year in which you become resident in Spain, not from the date you got your residency.

Here we provide a useful summary and information of the first tax declarations for anyone who doing their Tax in Spain for the first time.

Understanding and planning fiscal residency and Spanish tax is a very important when making the transition to become a resident in Spain.  Tax in Spain is very different to the UK, and has become even more complicated since the UK left the EU as the way certain types of income are treated changed.

Here we provide an overview of the tax related requirements and key points that most need to consider when becoming a Spanish resident.

Getting your tax right when moving from the UK to Spain requires an understanding of all the things that need to be done and when to do them.  Here we provide information about all the things you may need to do or consider to make sure you get your tax right both on the UK side as a leaver and on the Spanish side becoming tax resident in Spain.

Things you may need to do to get Your Tax Right Before Moving from the UK to Spain

Understanding tax in Spain is essential, not just if you live here, but also if you own a property in Spain.

The Spanish tax year runs from 1st of January to 31st December.  Residents have to complete their income tax return, declaracion de la renta, by 30th of June the following year, and non-residents have until 31st December.

Spain has a double taxation treaty with the UK, US and many other countries so if you are a foreign national from one of those countries living in Spain with income from your home country you can avoid getting taxed twice on the same income.

Resident or Non-Resident for Tax in Spain?

You are considered to be tax resident in Spain if any of the following apply:

Since the introduction of legislation in 2012, (LEY 7/2012, de 29 octubre, de prevención y lucha contra el fraude fiscal), Spain has required all Spanish residents to make an overseas assets declaration, notifying the authorities of the worldwide assets that they own or control.

Under the Law, failure to make an overseas assets declaration, or submission of an inaccurate one, would result in costly penalties.  Unreported overseas assets that were later discovered by the authorities, were treated as undeclared income on which tax should have been paid. The fines and penalties for such could amount to more than 150% of the undeclared asset value.

Whilst the law was aimed at deliberate high level tax evaders, the fact it allowed penalties to be imposed simply for non-declaration of overseas assets, meant that expats and other foreigners living in Spain, who are likely to have such assets, could fall foul of this rather intrusive legislation.

Indeed many received harsh penalties, simply for making the declaration late or making a mistake on the form, despite having legitimately acquired their overseas assets BEFORE taking up residency in Spain.