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The 10 answers to survive the income tax return this 2023

7 Jun 2023

We know that the income tax season can be a bit daunting (not to say scary), especially if you are self-employed, if it is the first time you file, if you started working abroad in the last year, or if you have to file it just like that.  But don't worry, our partners at Between Procedures are experts on the subject and have given us the answers to the 10 most frequently asked questions among professionals who have to file their income tax return this 2023. So read on and find the keys to face your tax return without dying in the attempt. 

1. Am I obliged to file a tax return?

Income Tax Return in Spain is mandatory for all those who have earned more than €22,000 gross per year during the 2023 tax year.. If your income during this fiscal year is below the limit established by the Treasury, you may not have the obligation to file the tax return, as long as you meet the requirements established in Article 74 of Law 35/2006. You should bear in mind that if you are an employee or self-employed, you are obliged to file your income tax return. even if your income does not reach €22,000.

2. Who does not have to file an income tax return in Spain?

If your 22,000 per year or less and you have only one payorIf you are a taxpayer with income from work, you will not be required to file it. If you are a taxpayer with earned income, you are not required to file a tax return. 14,000 or less with more than one payerYou are also not required to file a tax return. Likewise, if you are a taxpayer who receives income from movable capital or capital gains subject to withholding or payment on account, but these together do not exceed €1,600 per annumYou are also not required to file it. Other taxpayers who may be exempt from filing in Spain are non-residents, students and retirees.  In case your taxpayer profile is exempted from filing a tax return, this does not mean that you cannot file it. In fact, this could be a bad tax decision. Therefore, the best thing to do, whether you are obliged to file or not, is to make a simulation of the calculation to know if the result of this is to return or to pay. In this way, if the result is a refund, you will be able to file the return and not lose that money.

3. How long do I have to file my tax return?

During 2023, the deadline for filing income tax returns online began on April 11 and will be extended to April 2023. until June 30.

4. What documents do I need to file the declaration?

Each statement is a unique case, however, there are some common elements in all statements:
  • DNI.
  • Certificate of the degree of handicap if applicable.
  • Last income tax return for fiscal year 2021.
  • Certificate of income or invoices issued and received in the case of self-employed.
  • Information of your bank accounts.
  • Income from rented real estate, as well as expenses.
  • Receipts of subsidies or grants.
  • Bank account number to make or receive the resulting payment.

5. What happens if I do not pay?

If the result of your tax return is payable, the Treasury will not notify you how much time you have to make the payment. However, if during this period you do not make the payment, the Tax Authorities will claim its collection through the enforcement process, adding surcharges and late payment interest to the initial tax. These interests will increase as the time of non-payment elapses.

What subsidies are taxed?

Generally, subsidies and grants are considered as capital gainsIn the case of self-employed and other independent professionals, they are considered as income from their economic activity. Grants and subsidies may be subject to taxation depending on the type and purpose of the aid. Thus, while some are exempt from taxation, others are subject to taxation.
  • Exempt subsidies and grantsTax exemptions include subsidies for unemployment benefits, social security benefits for permanent disability or severe disability, and subsidies for integration and social emergency aid for expenses such as food, electricity and water.
  • Taxable grants and subsidies: These are those that are related to an asset, such as the youth rent subsidy, the cultural bonus and the €200 grant, which must be included in the income tax return. In the case of grants and subsidies related to Spain's historical heritage, they are also considered capital gains and must be declared in the corresponding box.

7. I stopped working in the middle of the year, do I have to file my income tax return?

The answer depends on whether your unemployment situation is linked to the receipt of unemployment benefits. If so, it must be verified whether the annual income limits for filing the tax return are exceeded.

Do I have to file my income tax return in Spain if I work abroad?

If you are resident in Spain and work abroad, you may be subject to double taxation.. Resident taxpayers are obliged to declare their worldwide income in the Spanish income tax return (Model 100 or Model 180).  In general terms, you are considered a resident for tax purposes if you have been in Spain for more than 183 days during the calendar year, as well as if your habitual residence or the center of your economic interests is in Spain.

9. What are the rules for filing income tax returns in Spain if I work abroad?

There are specific rules for filing your income tax return in Spain depending on whether you work in the same country or not. If you work in another country, some of the rules you must follow to file your return are: 
  • If your income exceeds certain thresholds (€60,100 per year), you must declare it both in the country where you work and in Spain. This can help you avoid double taxation. 
  • If your income is below a certain threshold, you can apply for an exemption of up to €60,100 per year. This option is available for people who are resident in Spain and work abroad.

10. How to request an electronic certificate for the declaration?

You can obtain your electronic certificate in two ways:
  • The easiest and fastest way is through the AEAT's website. From the page, click on the »Request certificate» button and fill in the online form. Once you have completed the form, you will receive an email with confirmation of your request and a reference number.
  • You can also do it in person at an AEAT office. To do so, you must make an appointment. At the office, you will have to present all the required documentation and fill in the application form. Once your application is accepted, you will receive a confirmation email and a reference number.
If you still have doubts about your tax return and are worried about making a mistake when filing it, let the professionals at Entre Trámites advise you and help you file it! Consult your plans for Renta 2023, and file your tax return on time and error-free for 55€*+ VAT. *If you have income abroad, contract your plan from 61€ + VAT. And if you are already a member of community Aticco, contact Marina at services@aticco.com and ask for the special member discount.