Personal Income Tax Return (IRPF)
All You Need to Know About Personal Income Tax (IRPF) in Spain
What is the Personal Income Tax Return (IRPF) in Spain?
The Personal Income Tax Return (IRPF) is an annual tax declaration required for tax residents in Spain. Through this process, individuals report their income and personal situation to the Spanish Tax Agency (Agencia Tributaria), determining whether they need to pay additional taxes or receive a refund.
This service applies exclusively to tax residents in Spain. Non-residents must follow the regulations for Non-Resident Income Tax (IRNR).
When Are You Considered a Tax Resident?
Tax Resident in Spain
A person is considered a tax resident in Spain if they meet at least one of the following criteria:
183 Days in Spain Per Year
If you spend more than 183 days in Spain during a calendar year, you are considered a tax resident, even if these days are not consecutive. The Spanish Tax Agency counts all days spent in the country, including short trips abroad unless you can prove tax residency in another country.
Spain as Your Main Economic Center
If Spain is where you generate most of your income or hold your primary economic interests, you are considered a tax resident. This applies to individuals who own businesses, work in Spain, or have financial assets and investments managed within Spanish territory.
Family Residency in Spain
If your spouse (unless legally separated) and/or dependent children habitually reside in Spain, tax authorities may presume you are a tax resident, even if you spend less than 183 days in the country. To counter this assumption, you must provide evidence proving your tax residency elsewhere.
Who Must File a Personal Income Tax Return?
Obligation and Exemptions
In Spain, tax residents are required to file a Personal Income Tax Return (IRPF) if their income exceeds certain thresholds, which vary depending on the source of income:
- Employment Income – If you earn more than €22,000 per year from a single employer or €15,000 per year from multiple employers, you must file.
- Rental Income – If you rent out property in Spain, you may be required to declare rental earnings, even if you are below the salary threshold.
- Investment & Capital Gains – Any significant income from dividends, stock sales, or other financial gains must be reported.
Who is exempt?
If your total income falls below the minimum thresholds set by the Agencia Tributaria, you may not be required to file. However, even if you are exempt, it might still be beneficial to submit a return to claim tax refunds or deductions.
What's New for the 2024-2025 Tax Year
Important Changes
For the 2024-2025 tax year, Spain has introduced important changes:
- Extended Payment Methods – In addition to direct debit and electronic payment, taxpayers can now use secure credit card payments.
- Unemployment Benefits Now Require Filing – Even if income is below previous thresholds, individuals receiving unemployment benefits must now submit their tax return.
- Adjustments in Tax Deductions – Certain deductions for families, pensioners, and homeowners have been updated.
What is the Process
Filing Your Income Tax: Step-by-Step Guide
1. Gather Your Documents
This includes income statements, bank details, certificates of withholdings, rental income, and any other financial records.
2. Check Your Draft Tax Return
The Spanish Tax Agency offers a draft for review and modification directly on their website.
3. Review and confirm
It is essential to verify that all data is correct and up-to-date.
4. Submit the tax return
Once reviewed, it can be submitted online, by phone, or in person at the Tax Agency offices.
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The Tax Agency offers telematic services that simplify the filing of the tax return. If there are doubts or complex tax situations, it is advisable to seek assistance from tax advisors and keep abreast of tax updates and possible deductions applicable to each personal situation.
Make it Easy with Us!
Claim eligible deductions, avoid penalties, and maximize refunds with expert advice.
At Fuster & Associates, we understand that filing a Personal Income Tax Return in Spain can be a complex process, especially for those unfamiliar with the Spanish tax system. Our team of expert tax advisors is ready to simplify this process and ensure that your tax return is completed accurately and on time.
Why Choose Fuster & Associates for Your Income Tax Return?
- Experience & Professionalism – With over 25 years of experience, our multidisciplinary team of lawyers and tax specialists has assisted numerous international clients with their tax obligations in Spain.
- Personalized Service – We recognize that every situation is unique. Our team provides tailored tax advice, ensuring that every aspect of your financial situation is properly assessed.
- Clear & Effective Communication – We communicate in multiple languages to ensure that you fully understand each step of the process, giving you confidence and peace of mind.
- Strategic Geographic Coverage – With offices in key locations such as Los Alcázares, La Zenia, Finestrat, and Teulada, we offer local and personalized service adapted to the specific needs of each region.
Our Commitment to You
From document collection to tax submission, we handle the entire process, avoiding common mistakes and ensuring full compliance with Spanish tax regulations. If you are planning to settle in Spain in areas like San Juan de los Terreros, Pulpí, Los Alcázares, La Zenia, Teulada, or Finestrat, our team is ready to provide you with a dedicated and professional service.
Contact us today and let our tax specialists take care of your Personal Income Tax Return, giving you the legal peace of mind you need to enjoy your life in Spain.
FAQS
Frequently Asked Questions Personal Income Tax Return (IRPF) in Spain
Here are the most frequently asked questions foreigners who move to Spain often have about the IRPF (Income Tax for Individuals)
When am I considered a tax resident in Spain?
This depends on whether you spend more than 183 days per year in Spain, have your economic interests here, or if your family resides in the country.
Am I required to file a tax return?
Yes, if you are a tax resident and exceed certain income thresholds, such as earning more than €22,000 annually from one employer or more than €15,000 from one employer and €2,500 from others.
What income do I need to declare?
You must declare all your global income, both earned in Spain and abroad, if you are a tax resident.
How can I avoid double taxation?
Spain has double taxation agreements with many countries to prevent you from paying taxes twice on the same income.
What is the Beckham Law, and how does it affect me?
This is a special tax regime for employees relocated to Spain, allowing them to be taxed only on income earned within the country for a limited period.