EXPLAINED: The key changes to Spain's 2023/2024 annual tax return
Spain's annual tax return period kicks off on Wednesday April 3rd, and there are several changes you should know about for the 2023/24 tax return, known as 'la renta' in Spanish.
It's that time of year again in Spain - tax season!
Personal income tax is known as IRPF in Spain (Impuesto sobre la Renta de las Personas Físicas) but most Spaniards simply refer to it as la renta because the tax return itself is called la declaración de la renta.
This year, you must file your taxes for the previous financial year – that is to say, 2023. The campaign starts on Wednesday 3 April 2024.
From that date, you can present your taxes for 2023 online, and the campaign this year runs until July 1st.
Key dates for Spain's 2023/24 tax return
For the 2023 fiscal year, you must file your tax return between April 3rd-July 1st 2024.
The key dates are as follows:
April 3rd - July 1st 2024: online filing
May 7th - July 1st 2024: by telephone (appointment request from 29 April-28 June)
June 3rd - July 1st 2024: in person at its offices (appointment request from 29 May-28 June)
Key changes to Spain's 2023/24 tax return
Self-employed
As of 2024 all self-employed people (known as autónomos in Spanish) are now obliged to file a tax return, regardless of their income level. Previously, only those who earned more than €1,000 a year had to make an IRPF declaration.
Self-employed workers who are taxed in the module regime will see the reduction on net returns increase from 5 percent to 10 percent, and those who work from home can make a deduction of up to 30 percent on expenses related to their work activities.
Self-employed people taxed under the estimation system, which you can read more about here, will now be able to make an additional deduction of 2 percent, raised to 7 percent.
The types of tax deductions those on this type of regime can apply include:
- Monthly Social Security contributions
- Deductions for the vehicle usage (if it applies to your business)
- Deductions for business-related training expenses
- Special deductions, such as research and development expenses
- Tax relief at a regional level
READ ALSO:
- The big tax declaration change Spain's self-employed need to know
- Everything that changes for self-employed workers in Spain in 2024
Electric vehicles
Taxpayers who bought (and registered) an electric vehicle in Spain in 2023 will be able to deduct 15 percent of the total purchase value, including expenses and taxes. They can also exclude any public subsidies they have received to aid the purchase with a maximum base of €20,000.
They can also deduct 15 percent up to a maximum base of €4,000 for the installation of a charging point.
Maternity deduction
Previously, only working mothers could benefit from a deduction (€1,200 per year for each child under the age of three) when making their tax return.
Now, even if the mother was not working but collecting unemployment benefits at the time of the birth, or if she subsequently paid social security contributions for 30 days or more, she will be able to benefit from this deduction and even apply for an advance payment of €100 per month.
READ MORE: The tax deductions you get in Spain for having a child
Capital gains increases
The tax rate on capital gains income has been raised by a percentage point to 27 percent for income over €200,000.
For capital gains over €300,000, it's been raised to 28 percent.
READ ALSO: Spain’s plusvalía tax on property sales: What you need to know
Startup companies
From 2023 onwards, deductions for new and startup companies in Spain have improved. Taxpayers may deduct from their tax liability up to 50 percent of the amounts paid for shares or holdings in new or recently created companies, the maximum deduction base being €100,000 per year.
READ ALSO: Which startups succeed in Spain (and which ones fail)?
Our journalists at The Local are not tax experts. This article is intended to be informative, but you should always seek the advice of a tax or legal expert before making decisions.
READ ALSO:
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It's that time of year again in Spain - tax season!
Personal income tax is known as IRPF in Spain (Impuesto sobre la Renta de las Personas Físicas) but most Spaniards simply refer to it as la renta because the tax return itself is called la declaración de la renta.
This year, you must file your taxes for the previous financial year – that is to say, 2023. The campaign starts on Wednesday 3 April 2024.
From that date, you can present your taxes for 2023 online, and the campaign this year runs until July 1st.
Key dates for Spain's 2023/24 tax return
For the 2023 fiscal year, you must file your tax return between April 3rd-July 1st 2024.
The key dates are as follows:
April 3rd - July 1st 2024: online filing
May 7th - July 1st 2024: by telephone (appointment request from 29 April-28 June)
June 3rd - July 1st 2024: in person at its offices (appointment request from 29 May-28 June)
Key changes to Spain's 2023/24 tax return
Self-employed
As of 2024 all self-employed people (known as autónomos in Spanish) are now obliged to file a tax return, regardless of their income level. Previously, only those who earned more than €1,000 a year had to make an IRPF declaration.
Self-employed workers who are taxed in the module regime will see the reduction on net returns increase from 5 percent to 10 percent, and those who work from home can make a deduction of up to 30 percent on expenses related to their work activities.
Self-employed people taxed under the estimation system, which you can read more about here, will now be able to make an additional deduction of 2 percent, raised to 7 percent.
The types of tax deductions those on this type of regime can apply include:
- Monthly Social Security contributions
- Deductions for the vehicle usage (if it applies to your business)
- Deductions for business-related training expenses
- Special deductions, such as research and development expenses
- Tax relief at a regional level
READ ALSO:
- The big tax declaration change Spain's self-employed need to know
- Everything that changes for self-employed workers in Spain in 2024
Electric vehicles
Taxpayers who bought (and registered) an electric vehicle in Spain in 2023 will be able to deduct 15 percent of the total purchase value, including expenses and taxes. They can also exclude any public subsidies they have received to aid the purchase with a maximum base of €20,000.
They can also deduct 15 percent up to a maximum base of €4,000 for the installation of a charging point.
Maternity deduction
Previously, only working mothers could benefit from a deduction (€1,200 per year for each child under the age of three) when making their tax return.
Now, even if the mother was not working but collecting unemployment benefits at the time of the birth, or if she subsequently paid social security contributions for 30 days or more, she will be able to benefit from this deduction and even apply for an advance payment of €100 per month.
READ MORE: The tax deductions you get in Spain for having a child
Capital gains increases
The tax rate on capital gains income has been raised by a percentage point to 27 percent for income over €200,000.
For capital gains over €300,000, it's been raised to 28 percent.
READ ALSO: Spain’s plusvalía tax on property sales: What you need to know
Startup companies
From 2023 onwards, deductions for new and startup companies in Spain have improved. Taxpayers may deduct from their tax liability up to 50 percent of the amounts paid for shares or holdings in new or recently created companies, the maximum deduction base being €100,000 per year.
READ ALSO: Which startups succeed in Spain (and which ones fail)?
Our journalists at The Local are not tax experts. This article is intended to be informative, but you should always seek the advice of a tax or legal expert before making decisions.
READ ALSO:
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