2021 “Declaracion De La Renta” Guide

April is the cruelest month or so goes the line from T.S Elliot – it is also the month that the Spanish Tax Agency kicks of its annual campaign for personal income tax filings.

The Madrid Metropolitan´s Spanish tax expert, Antonio Rodriguez  explains the outline of who needs to complete it and for what income.

The Spanish Income Tax Return Modelo 100 IRPF applies to all tax residents in Spain , so if you are currently living and working here, you will need to pay income taxes in Spain (as well as on your assets) and will have to file the tax return.

If you are considered to be officially resident in Spain ( that is 183 days) you will also be obliged to pay tax on any income outside Spain.

If you are considered non-resident in Spain ( 182 days or less) you will only pay income taxes in Spain on your Spanish income.

All Spanish fiscal residents must file Modelo 100 IRPF from April 7th to June 30th, if their annual income if their annual income is more than 22.000€ or 14.000€ per person if it comes from more a combined income of a couple.

In Spain, income tax is deducted from employee salary and paid on their behalf to Hacienda and it is generally this tax that is declared and depending the amount may result in a tax rebate.

The Spanish tax year runs from 1 January to December 31 of the previous year – so for this year 2021 filings are made on income for 2020.

Pensions and other forms of income do not apply.

Applicants may check the details that the Spanish tax agency have on them directly on their portal – AEAT WEBSITE- ( you may need a PIN or other code to access which you apply for separately.)

For those receiving income from property the 2020 has allowed for an improved depreciation of assets, in which you can transfer the calculations from the previous year. Another important improvement for this year is the Tax Return simulator Modelo 100 IRPF 2020 (simulator), that helps you to estimate your tax liability in advance.

With your  DNI/NIE/TIE and surname you should still be able to access your “Número de referencia del borrador o de los datos fiscales which will give you the key information that is held on you.

You may also arrange an appointment by phone and speak  to the Spanish Tax Authority AEAT by calling 901 12 12 24 or 91 535 73 26  from Monday to Friday between 9am and 7pm.

Alternatively you can now download the AEAT app on  Google Play and Apple Store.

You also must file the return if your income from movable capital is more than 1,600€ (“rentas imputadas)  from your real estate are more than 1,000€.

All self employed (autonomo) workers with income above €1,000 must also make the annual tax return in addition to the quarterly modelo 130 declaractions over the previous year and report their income expenses and taxes paid under “actividades economicas” in the modelo 100.

Those who receive the minimum vital income, and the members of the family are obliged to file the annual tax return, IRPF.

If you ended paying for your tax return you can do it in two parts: the first, 60% of its amount, at the time of filing the return or id elect to direct debit from your account, on June 30th, and the second, the remaining 40%, on November 5th, 2021.

As in previous years, taxpayers may allocate 0.7 percent of their entire quota to activities of social interest by marking box [106] of the return with an “X”.

It will be wise to check possible deductions depending where you live in Spain, as each of the country´s 17 autonomous communities sets their own regional rates.

If you have any further question or need to clarify your situation, please do not hesitate to check our website (US Tax Consultants) or call our office for a fee consultation with no commitment”

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