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TAX DECLARATION

How to complete Spain’s Declaración de la Renta tax return at the last minute

With the deadline for Spain's 2021-2022 'Declaración de la Renta' (annual income tax return) just a few days away, here is our step-by-step guide to help you complete the process successfully.

How to complete Spain's Declaración de la Renta tax return at the last minute
Here are the steps you should follow when doing your annual income tax declaration in Spain. Photo: Brum Naus/Unsplash

Taxes in Spain can be very confusing, particularly if you’re new here or you have multiple sources of income.

So if you have lots of doubts it may be advisable to contact a gestor  to go over your situation and help you to complete la declaración de la renta.

However, if you want to cut out extra costs and your income source is fairly straightforward (contract worker), this guide will help you with the different steps to fill out and submit your annual income tax declaration.

You can do it online, providing you have a Digital Certificate or a [email protected] pin.

Anyone resident in Spain who earned €22,000 and over in 2021 must present an income tax return, although you can find specific details on who must present one here

The campaign for 2021 opened on April 6th 2022 and will close on June 30th 2022. 

READ ALSO – La Renta: The important income tax deadlines in Spain in 2022

To begin, click here to access the Agencia Tributaria website, then click the link that says ‘Servicio de tramitación borrador/declaración (Renta WEB)’, under Gestiones destacadas. This will take you to the declaration form.

Step 1: 

The first screen will ask you to identify yourself using your Digital Certificate or [email protected] pin. You are also able to identify yourself with your NIE, but only if you completed the Declaración de la Renta in the previous year and have the reference number.

If you’ve identified yourself with your Digital Certificate or [email protected] pin, you will be taken to a screen containing your personal details, such as name and address. If everything is correct, you want to click on the button that says ‘ratificar’. If you need to change certain details, click on ‘modificar’, then press ‘continuar’ to continue to the next page.

Spanish tax return

Check that all your details are correct to continue. Photo: Agencia Tributaria

Step 2: 

If you identified yourself with your NIE and reference number, you will be taken directly to the next page.

Here, you will see a page listing the different ‘Servicios Disponibles’ or Available Services. Click on ‘Borrador/Declaración (RENTA WEB)‘ to access and complete your tax return.

On the next screen, you will again see a summary of your personal details – name, address, birthdate, NIE etc. You will need to make sure that these are correct before continuing. You will also need to know the referencia catastral of the property you’re living in. If you own your property, this should be on the deeds to your house, but if you are renting, you can find it out here

The form will also ask you questions about your marital status and give you the option of declaring as an individual or together with your spouse. You may want to contact a gestor or a tax lawyer to find out which would be best for you, because it could mean paying more or less tax, depending on your individual circumstances.

Spain tax return

Fill out all your personal details. Photo: Agencia Tributaria

If you want to do it as an individual, check the box that says ‘Si desea que el programa solamente calcula de la declaración individual del declarante, marque aqui’.

When you’re done checking and completing all your personal details, click on ‘Aceptar’ to continue.

Step 3:

On the next page, you will see lots of numbers, detailing all the tax deductions and payments made by you in 2021. If you were employed, rather than self-employed you can click on ‘ver datos fiscales’ in order to check that everything is the same as on the certificado de retenciones or withholding certificate issued by your employer.

If you are self-employed, you can check that all the amounts match the amounts you declared and paid in each trimester of 2021 as you should have already submitted tax returns for the four trimesters of last year.

If there is anything you need to add in manually, you can do this by clicking on the button at the top which says ‘Ver datos trasladados’. Here, you can add in anything that was not already incorporated. When you’re done with this click on ‘Volver’ to return to the main page.

Check that all the amounts for 2021 are correct. Photo: Agencia Tributaria.

Step 4:

You will now see a 58-page document detailing a huge range of questions and scenarios. This includes everything from asking if you want to donate money to the Catholic church to any interest you may have earned on savings or anything you might have inherited during the previous year. You can click the arrows to move through each page or click on ‘Apartados‘ in the top left-hand corner to see a drop-down menu of each section and go directly to different parts of the form. 

Click on the arrows to move through each page and answer the questions. Photo: Agencia Tributaria
 
Step 5:
 
When you’ve filled everything out, click on ‘Validar‘ in the top left-hand corner in order to see if you have made any errors or mistakes. It will highlight anything you need to look at in yellow and let you know what you’ve done wrong. 
 

Click on ‘Validar’ to see if you’ve made any mistakes. Photo: Agencia Tributaria
 
Step 6:
 
When you’ve checked everything through, go back to the main page to see the final result of how much tax you need to pay or indeed if you’re owed a tax rebate. When you’re happy with everything, click on ‘Presentar Declaración’ at the top. It will ask you who is declaring, you as the Declarante or your spouse Conyuge. Remember that even if you are presenting your tax return together, you will still have to also make sure you present your declaration separately and log in again, it’s just that the calculations for both will be taken into account. 
 

Present your tax return by clicking here. Photo: Agencia Tributaria
 
Lastly, you will be taken to a page where you will need to fill out your bank details if you are owed money or the payment details, if you have to pay. You can choose if you want to pay in instalments or all at once. Finally, click on ‘Aceptar‘ to finalise and submit everything. Remember, if at any time you want to stop and continue later, you can always click on ‘Guardar‘ or Save at the top and come back to it. 

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For members

TAXES

The tax cuts and other benefits Spain’s new Startups Law will bring to entrepreneurs

Foreign entrepreneurs have been waiting for years for Spain's highly anticipated Startups Law to be finalised. The latest news is that it will come into force in September 2022; and new details on the benefits it will bring have also been released.

The tax cuts and other benefits Spain's new Startups Law will bring to entrepreneurs

Spain’s new Startups Law, which the Spanish government first announced in 2019, could finally come into force in September 2022, as indicated by Economy Minister Nadia Calviño. 

For the first time, Spain will have a law directly aimed at the particularities of small technology-based companies. 

The new Startups Law hopes to attract foreign companies, making it easier for startups to choose Spain by giving them incentives such as tax reductions. 

Although there is still a long way before the final text of the Startups Law is published, and it may have to go through several amendments yet, here’s the latest on the draft law so far and the benefits it will bring.

There will be no obligation to pay the social security self-employed fee for multiple activities

One of the most important announcements is the elimination of having to register as self-employed (autónomo) in the Special Scheme for Self-Employed Workers (RETA) for three years, provided that the entrepreneur who launches the startup is in turn hired as an employee by another company.

This is the case for 25,000 self-employed workers in Spain who currently combine working for themselves with being hired by someone else.

Overall, it’s good news as Spain’s social security fee is among the highest in Europe at €294 a month. 

Self-employed workers will have three chances to benefit from the new law

The failure of a business is something that is being contemplated for the first time in legislative text in Spain.

The startup bill will make serial entrepreneurship easier, meaning that a freelancer who has started a business, which ultimately doesn’t work, can try again and can continue to benefit from the same advantages. Specifically, entrepreneurs are allowed to benefit from the Startups Law up to three times.

Improvement in the tax treatment of stock options

Stock options are often a form of remuneration for work that is frequently used in startups. It consists of offering directors or employees the possibility of obtaining shares of the company where they work. Specifically, the tax exemption amount will rise from €12,000 to €45,000.

In addition, tax will only be paid on these shares when the sale of them takes place, or when the company goes public.

Deduction in Corporation Tax to 15 percent

It will give startups and investors a reduction in Corporation Tax from the current 25 percent to 15 percent. 

The elimination of obstacles for foreign investment 

One of the main problems foreign investors encounter when they want to invest in a Spanish startup is bureaucracy.

As a result of this, the new law aims to eliminate the obligation for international investors to request a NIE (foreigner ID number) to carry out this type of action. Both investors and their representatives will only need to obtain Spain’s tax identification numbers (NIFs).

Tax breaks

The new law includes a series of tax benefits in order to make national investment more attractive.

The maximum deduction base for investment for newly or recently created companies will be raised from €60,000 to €100,000 per year and the type of deduction will increase from 30 to 50 percent.

The period of time that a company is considered ‘recently created’ will increase

The period that is considered ‘recently created’ for eligible companies will go up from 3 to 5 years old. For biotechnology, energy or industrial companies, the bracket is wider still – 7 years.

Who will be able to benefit from Spain’s new Startups Law?

The Startups Law is open to anyone from the EU or third countries, as long as they haven’t been resident in Spain in the five previous years. It will allow them to gain access to a special visa for up to five years. 

This visa will be open to executives and employees of startups, investors, and remote workers, as well as their family members. 

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