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The Spanish tax return, known as Declaracion de Renta.


Many Spanish Residents have either been avoiding this through lack of knowledge or deliberate avoidance. However, the Spanish government is now exchanging information with the UK and other EU countries, to ensure that anyone liable for Spanish tax is making a tax return here in Spain. Due to the double taxation agreement you will never need to pay the same taxes in both countries.


With very few exceptions, everyone resident in Spain for more than 183 days in a year has to file a tax return. The cut-off point is 11.200€ in any one year which applies to income from employment and pensions from overseas, for example income not taxed in Spain nor in the UK (ie UK state or private pensions) and income from more than one source. The cut off point is 22.000€ ONLY if income comes from one source and is being taxed in Spain such us Spanish pensions or employment income. It is obligatory in certain circumstances however low your earnings are, if:


- you have a claim for double taxation - you are due a refund


- you have made pension contributions - you are claiming deductions for the cost of buying your main residence - you have capital gains or income above certain limits (for example when you earn over 1,000 Euros on interest abroad)


Female Focus


See page 28 for more information


It may be in your interest to make a tax return when your earnings are low, for example if you have worked for only part of the year and may therefore be due a rebate. Also, there are advantages of being fiscally resident in Spain. The declaration must be filed by the 30th June during the year following the relevant tax year. Failure to pay tax can result in penalties of between 50% and 150% of the tax owed, plus interest. Late payment can result in penalties between 5% to 20% of the tax involved, plus interest.


Can I regularise my last 4 years income tax return? The answer is yes. The Law 16/2014 provides an opportunity to regularise your last 4 years income tax return. This means that if you voluntarily update your last 4 income tax returns before the 30th of June 2015, you will not face interest nor surcharges, according to this law.


This article is an overview and it is strongly recommended that all technical and legal matters pertaining to taxes be referred to a lawyer for advice, guidance and execution. Pellicer&Heredia Lawyers & Tax Advisors will be pleased to help you.


See our advert top left for contact details.


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