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)
As the Spanish tax year runs from January to December, there is a 3 month overlap with the UK tax year. 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 P60’s, or using payslips or pension payment advice letters.
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 you 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.
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