Deadline until June 30! Do not forget to prepare your Spanish income tax return!

Were you in Spain in 2020 and are you a resident for tax purposes? I 

Is your employer not in Spain? Does the bank account in which you receive income not have a Spanish IBAN? Do you have a second home abroad at your disposal or rented out? Do you have significant financial assets located outside of Spain?  

Under all these circumstances, you may have the doubt of whether you are obliged to file an annual tax return or not, but we already anticipate that yes, you will be obliged. 

Keep in mind that tax residents are subject to tax on their worldwide income. It does not matter where your income comes from or where you receive it.  

Worldwide income implies taxation regardless of the location of the payer, the location of the bank account where the income is paid, or the location of the asset or right from which the income comes.  

But, when will you have the obligation to file a tax return in Spain? Here are the most common and general cases. The Spanish law establishes that, if you receive income from employment or similar, there is an obligation to present a statement, when: 

1. Your earned income comes from a single payer (employer) and reaches an annual amount of EUR 22,000 or more or, with the same limit of EUR 22,000, you have had two or more payers and the combined amount of the second and other payers is not more than EUR 1,500.
2. When you have had more than one payer (employer) and the income received is an amount of EUR 14,000 or more.
3. When the employer is not obliged to make withholdings (i.e. non-Spanish employer).
4. When employment income is subject to a fixed rate of withholding.  

In addition, you will have the obligation to file an annual income tax return, among other reasons, when:  

1. Generally speaking, your movable capital (interest, dividends, etc.) and your capital gains have been subject to withholding and have a combined annual amount of EUR 1,600 or more.
2. You have properties at your disposal that do not constitute your habitual residence from which an imputed income together or not, with any  other type of income not subject to withholding amounts EUR 1,000 or more. 

Finally, there is also an obligation, in the case of taxpayers who have the right to apply a deduction for investment in habitual residence, a deduction for international double taxation, or have made contributions to protected assets, pension plans or similar that may imply a tax reduction and they want to have these rights.  

Watch-out!! taxpayers who pay under the Special Tax Regime. There are no minimum monetary or non-obligation cases. If you have been granted the Special Tax Regime, there are not minimum thresholds, you will have to file your form 151 in any case.

Not sure yet? Do not hesitate to contact us at: info@albeatax.com