La Renta – Declaration of Income in Spain

Are you working or gaining any income in Spain? If so do not forget about the declaration of your income called declaración de la renta!

What is declaración de la renta?

Declaracion de la Renta – is the personal income tax which taxes the income obtained in a calendar year by people residing in Spain. Each year, taxpayers have to present the IRPF (Impuesto de la Renta de las Personas Físicas) declaration to check if the taxes were paid correctly during the year. In the case of the higher taxes being paid than it had to be, the Treasury returns money to the corresponding person. In case of the contrary, if fewer taxes being paid during the year, one must balance it out and pay an extra fee to the Tax Agency called Agencia Tributaria.

When delcaratin de la renta takes place?

Declaration of the income in Spain starts every year in a month of April. First, it normally starts with a possibility to do so-called borrador de la renta. It is simply a draft proposal sent to each taxpayer by the Tax Agency. This proposal can be requested by phone, Internet or at the headquarters of the Tax Agency. If a taxpayer agrees with the proposal and no changes have to be made, it can be confirmed and presented as definitive. From the month of may, one can request the appointment (cita) at one of the offices of the Tax Agency and to declare his/hers income there. The period of declarations normally ends at the end of June, beginning of July every year.

Who has to declare the income?

In general, all the contributors to the tax system must declare their income. Salaries employees, self-employed, entrepreneurs, liberal professions people, also those who gained some capital from their assets such as rent, sold house, public benefit holders such as pensioners and unemployed people and so on, must declare their income. However, there are some exceptions as an example if a person earns less than 22000 euros gross a year and has only one source of income, such person can be exempt from la Renta.

How to declare your income?

There are different ways of doing the declaration. The easiest way to do so is by accessing
borrador on the webpage of Tax Agency and clicking on Servicio de tramitación borrador / declaración (Renta WEB), here you can connect with your electronic certificate, Cl@ve Pin or reference number. Another way to do so is to ask for an appointment through the same webpage of Tax Agency just by clicking on the option Obtenga cita previa Renta año. Again you will be asked to connect to any of the above-mentioned options and choose the office as well as the best time for you to visit the office. You can also ask for the appointment via phone by calling to the Tax Agency. The phones you can find stated at their official website. The third option would be to do the declaration through one of the bank offices which can be done just by contacting your bank and presenting at one of the offices. Last but not least, you can hire the services of a tax advisor. If you have a relatively easy case, for instance, one employer, no additional income we would recommend to do one of the 3 first options. If your case is more complicated it is always better to pay a little bit extra money to the external tax advisor and with his help do the process of the declaration.

What documents do I need?

If you are doing your declaration using borrador then the only thing which you will need is to credentials of your access to the system and your documents needed to confirm that the estimation was made correctly. Also, do not forget to check that all your personal data including status, employer have not changed.

In a case of declaring your income in one of the offices, you will need your identification document, NIE, and the number of your bank account. If you think that your rent can be included in the declaration (only contracts made before 2015) or that your income from employment should be revised, you should bring documents which might be needed for such check, contracts, payments, bank statements etc. We always recommend to call and check prior to turning up to the office. Detailed list of documents which might be required under certain circumstances you can find here.

Declaration de la Renta is waiting for you! Don’t forget to do so before it ends 🙂

Good luck,
Newly Spanish

Thanks messageb

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