The annual campaign for income tax returns has begun in Spain, with 11th April 2023 marking the start of the preparation and submission period for 2022 tax returns.
Spanish personal income tax, Impuesto sobre la Renta de las Personas Físicas, is often abbreviated to IRPF. The annual tax return, la declaración de la renta, is often shortened to la Renta.
As income is reported for the previous tax year, IRPF returns are now due for the 2022 tax year. Here’s what you should know about income tax returns in Spain, including the important dates for filing and paying la Renta in 2023.
Who has to file a tax return in Spain?
Before you get into the when and how of filing Spanish tax returns, you might be unsure whether you’re obligated to file a personal income tax return or not.
Anyone who meets any of the following requirements must file a tax return and pay any tax owed:
- ⦿ Residents living in Spain for more than 183 days a year
- ⦿ Residents in their first year of residency, regardless of income
- ⦿ Employees earning more than 22,000€ a year from one employer
- ⦿ Contractors or self-employed people earning more than 22,000€ a year
- ⦿ Employees earning over 15,000€ a year from multiple employers (if the second or third income exceeds 1,500€ a year)
- ⦿ Individuals earning over 1,600€ a year in dividends, interest, and/or capital gains
- ⦿ People who have economic interests or businesses in Spanish territory
- ⦿ Individuals whose spouse or dependants are Spanish tax residents
- ⦿ Property owners earning more than 1,000€ a year in rental income
Even non-residents, who stay in Spain less than half the year, could still be liable for income tax if they own a property in Spain. This means filing an Impuesto de la renta de no residentes declaración ordinaria or IRNR tax return.
Those earning rental income must submit quarterly returns, while those with no income must still file an annual return to be taxed on a percentage of the property’s cadastral value.
Non-residents are only taxed on income within Spain, but residents must also declare any income earned outside the country. Many countries have double taxation treaties with Spain to prevent residents from paying tax on the same income twice.
When are Spanish tax returns due in 2023?
In Spain, the tax year runs from 1st January to 31st December, with the earnings for this period due to be reported and outstanding taxes paid by the end of the following June. This means income tax returns for January–December 2022 are now due by the end of June 2023.
These are the important dates you need to be aware of and deadlines you must comply with to file your 2022 Spanish tax return on time in 2023:
⦿ 11th April 2023 – Income tax returns can be filed online through the Agencia Tributaria website.
⦿ 5th May 2023 – Income tax returns can be reported over the phone via a telephone appointment with an Agencia Tributaria officer (appointment bookings open 3rd May and close 29th June).
⦿ 1st June 2023 – Income tax returns can be presented in person at a local Agencia Tributaria office in Spain (by appointment only; bookings open 25th May and close 29th June).
⦿ 27th June 2023 – In order to pay by Direct Debit, you must submit your income tax return by this deadline. You can also declare your intent to split the outstanding tax into two instalments (due 30th June and 5th November, with no added interest) by this date.
⦿ 30th June 2023 – This is the final deadline for filing 2022 Spanish income tax returns and paying the relevant amount of tax. You could be fined, charged interest, and/or given a financial penalty if you miss this deadline.
Can you get tax reductions in Spain?
Income tax in Spain is charged progressively, meaning the more you earn, the higher the percentage of tax you pay. There are six income tax brackets for residents, with rates ranging from 19% for lower earners to 47% for higher earners.
Resident taxpayers have a tax-free allowance based on age, and there are also progressive allowances for taxpayers who have children under 25 or a parent or grandparent living with them, as well as allowances for married couples.
Spanish residents may also be able to claim income tax deductions for social security payments, pension contributions, and charitable donations. EU citizens can also deduct property running expenses from rental income earned in Spain.
However, non-residents will not be eligible for any allowances or deductions, and must pay the standard rate on any income earned in Spain – which is typically 19% for EU citizens and 24% for non-EU citizens.
If you end up overpaying tax and are due a deduction or rebate, this should be refunded to your bank account automatically without having to apply for it.
Get help with taxes in Andalucía
There are different income tax forms required for Spanish residents, non-residents, and non-resident property owners, so it’s essential to make sure you submit the right form. The majority of people prefer to file their taxes online for convenience, but if you aren’t familiar with the Spanish tax system or the language, this can still be complicated.
This is also true for those who may want to submit their tax returns over the phone, as the tax officers may only speak Spanish – and, of course, filing in person at a tax office isn’t ideal for non-residents who would have to travel to Spain to do so.
To avoid accidentally making mistakes, missing deadlines, or incurring Spanish tax penalties, one of the easiest ways to reduce the stress of filing income tax returns in Spain is to hire a professional to handle your tax affairs on your behalf. You could also benefit from seeking legal advice on applicable tax allowances and deductions.
Here at Manzanares Abogados, we offer a range of Spanish legal services throughout the country, including assistance with non-resident tax Spain in Andalucía. If your economic interests are based in Andalucía and you need help filing your 2022 Spanish income tax return, please call or email us to learn more about what we can do for you.