Declaración de la renta – Spanish residents’ tax returns

If you are a foreign national even if you have no obligation it is helpful to do a nil return to keep up your fiscal residence status.

Who is obliged to make a Spanish Tax declaration?

(Applicable law enacted 5 July 2018):

  • All individuals resident in Spain are required to file a tax return, except those who have received income exclusively from:
    1. Personal earned income equal to or less than 22,000 euros a year:
      • Provided it comes from a single payer.
      • When there are several payers, provided the sum of the second and subsequent payers in order of amount does not exceed the sum of 1,500 euros.
      • When the only earned income consist of passive benefits (social security or civil service pensions, benefits from pensions plans, collective insurance, mutual policies for social benefits, company social provision plans, insured provision plans and dependence insurance benefits), provided the applicable withholding rate has been determined in accordance with the established special regulatory procedure (at the taxpayer’s request through the presentation of form 146).The limit is set at 12,643 euros per year, except for taxpayers deceased before 5 July 2018, in which case the limit remains at 12,000 euros,in the following cases:
      • When earned income comes from more than one payer and the sum of the amounts received from the second and subsequent payers in order of quantity does not exceed the sum of 1,500 euros a year.
      • When non-exempt maintenance payments or annual payments are received from a spouse.
      • When the payer of the earned income is not obliged to make withholdings.
      • When untaxed earned income is received subject to a fixed withholding rate.In 2018, the following withholding rates have this consideration: 35% or 19% (when the earnings come from entities with a net turnover of less than 100,000 euros), applicable to remuneration received by administrators and members of Boards of Directors, from Boards acting as such and other members of representative bodies, as well as the rate of 15% applicable to earnings derived from teaching courses, conferences and similar, or those derived from elaborating literary, artistic or scientific works, provided that the right to their use has been transferred.
    2. Investment income and capital gains subject to withholdings or payment on account, with a joint limit of 1,600 euros a year.Capital gains from the transfer or buy-back of shares or holdings in collective investment institutions for which it is not appropriate to determine the withholding base from the sum to be integrated into the tax base are excluded from the joint limit of 1,600 euros. When the withholding base has not been determined in accordance with the amount to the integrated into the tax base, the capital gain obtained from the transfer or buy-back of shares or holdings in collective investment institutions cannot be calculated as a capital gain subject to withholding or payment on account for the purposes of the allowances in the obligation to make a return.
    3. Attributed income from property, income from treasury bills and grants for purchasing officially protected or valued price housing, and other capital gains deriving from public aid, with a joint limit of 1,000 euros per year.Those who obtain earnings from employment, or from liquid capital or from economic activities, or capital gains under €1,000 all together nor those who have had, exclusively, capital losses under €500 will not have to submit tax return in any case.Nevertheless, even if they are not obliged to declare taxes, all taxpayers who exercise the right to apply certain allowances or deductions, or to receive a refund, must confirm the draft or file their tax return.Income exempt from this tax is not taken into consideration.The above limits apply both to individual and joint taxation.In all cases, taxpayers who receive any type of income other than the above or exceed the maximum sums indicated are obliged to make a tax return.General FAQs on Personal Income Tax

Have a read here about sequence of events for new arrivals

If you are obliged to do a return for January to December of any year this is done from April to June of the following year. In order to prepare and present the return you need the following information (among other things depending on your circumstances):

Full Name

Date of Birth

NIE Number

If you do not have a digital certificate then you will need the Green residence certificate control number (on the back of the Green certificate see here for examples)

Marital Status if married same details for spouse

If you have dependant children or parents same details for them as well

Details of habitual residence:

Full address including post code

Rented or owned

Catastral reference if known

If rented :date of commencement of rental agreement, name of landlord NIE/NIF of landlord and if the contract began before 2015 the amount paid in rent per year.

Details of income

GROSS (Figures before any UK tax deducted) income from pensions or earnings – state  the name of the provider and currency as well as amount for the year January to December

Full details of any other Property, bought/sold and  owned other than habitual residence and whether let out or not

Details of investment or saving interest and any bonds shares etc and whether cashed in in the year Jan to December

Details of expenditure on prescription medication, private healthcare or prescription lenses or glasses

IBAN number of Spanish bank account

New rules for 2018