Income Tax Return in Spain for Expats: What You Need to Know
If you are a tax resident in Spain, it is important to understand your tax obligations, especially regarding the Income Tax Return. Failing to comply with this obligation can lead to unnecessary penalties and surcharges. Below, we explain the key aspects you need to consider to comply with current regulations and avoid issues with the Tax Agency.
Who is required to file the Income Tax Return?
In general terms, those who are tax residents in Spain and exceed certain income thresholds must file the Income Tax Return. A person is considered a tax resident if they have spent more than 183 days in Spanish territory within a calendar year or if their main economic activities are based in Spain.
If you earn more than €22,000 per year from a single payer, or more than €15,000 if you have multiple payers (and the second payer has contributed more than €1,500), you will be required to file a return. The same applies if you generate income from economic activities, rental properties, or other taxable sources.
It is important to note that even if you are not required to file a return, in some cases it may be beneficial to do so in order to take advantage of tax deductions and refunds.
How does double taxation affect you?
If you generate income abroad, Spain has double taxation agreements with numerous countries to prevent you from paying taxes twice on the same income. Each case must be analysed individually to apply the appropriate deductions and tax benefits.
What tax benefits can apply?
There are various deductions and tax reductions available depending on the taxpayer’s personal and family situation, such as:
- Reductions for contributions to pension plans.
- Deductions for renting a primary residence (in certain cases).
- Specific regional deductions depending on the autonomous community where you reside.
Deadlines and submission
The period for filing the Income Tax Return begins on April 2 and ends on June 30, 2025. It can be submitted electronically through the Tax Agency’s online platform or with the assistance of a tax advisor.
How can we help you?
Our law firm specialises in international taxation and can guide you through the entire process, ensuring compliance with regulations and optimising your taxation. If you have any doubts about your tax situation or need assistance with your return, do not hesitate to contact us.
Avoid penalties and maximise your tax benefits with our expert advice. Contact us today.
