Income tax return 2021: Everything you need to know!

We are about to start the most important event of the year: the 2021 Income Tax Return Campaign. A moment awaited and desired by some, feared by others.

For the tax advisors and officials assigned by the Tax Agency, it will be a very intense 3 months.

Let’s first look at the most important dates and the resources available to us:

 

• • March 8: reference number available on request

• • March 16: access to tax data is possible

• • April 6: Tax Returns can now be filed through the Internet via Renta WEB

• • May 3: telephone appointments are now available for telephone assistance

• • May 5: Beginning of assistance for the preparation and filing of the Income Tax Return by telephone.

• • May 26: appointments can be made for face-to-face attendance

• • June 1: Beginning of the preparation and filing of the Income Tax Return in offices

• • June 27: Deadline for payment by direct debit (in case of payment)

• • June 30: End of the Campaign

 

The assistance services available to citizens for the 2021 Income Tax Return Campaign are as follows:

• • Rent Information: 901 33 55 33 or 915 548 770 (Monday to Friday, from 09:00-19:00)

• • Appointment for Income Tax: 901 22 33 44 or 915 530 071 (in-person service at offices)

• • Preparation of declarations by telephone, Plan “We call you”: 901 22 33 44 or 915 530 071

• • Automatic service for preparation of Income Tax Return: 901 121 224 or 915 357 326

• • Web income

• • Mobile application “Agencia Tributaria” (Play Store, App Store)

To access the tax data or the Draft, it is necessary to have a Digital Certificate, electronic ID card, PIN code or reference number.

 

Who is NOT required to file a 2021 income tax return?

This is one of the most important data that is updated every year. It basically defines who has the obligation to file the 2021 income tax return, so let’s see what we have for this year:

 Persons whose income does not exceed the following amounts:

Work performance:

• • 22,000 €/year in general. *If the sum of the amount of the second (other) payer does not exceed the amount of €1,500/year.

• • 14,000/year when there is more than one payer, for non-exempt compensatory pensions or maintenance annuities, for payers not obliged to withhold or when there is income subject to fixed withholding rate

Income from movable capital and capital gains:

• If you stay more than 183 days a year in Spain (not necessarily consecutive)

• If it has the core of its economic interests directly or indirectly in Spain (for example if the headquarters and main offices are located in Spain).

   

• 1,600/year, provided that they have been subject to withholding or payment on account (e.g. dividends on shares, interest on accounts, deposits or fixed income securities, gains derived from reimbursements of shares in investment funds, prizes for participation in contests or games, etc.).

Income from movable capital:

• 1000/year, subject or not subject to withholding tax (e.g. Treasury Bills, and subsidies for the acquisition of subsidized or subsidized housing and other capital gains derived from public aid).

When is a person considered a tax resident in Spain? There is a proof that allows you to justify before the Tax Agency and avoid being considered as a resident for tax purposes, thus avoiding the payment of taxes in the Spanish territory, and it is the Tax Residence Certificate. It is valid only and exclusively for one year.

You should know that if you are considered a tax resident in Spain, you have to pay income tax in Spain on all income generated worldwide.

As in previous years, as soon as you access your tax data and/or the Draft, it is necessary to confirm your tax address. By default, the last one registered appears.

some important tips for your 2021 income tax return

At this point I recommend you some very important TIPS for the 2021 income tax return. Most people trust the data provided by the Tax Agency and that does not mean that they are correct or complete:

1. 2. • • Check and ratify your tax domicile

1. 1. • • Check your name and surname, as well as your marital status (especially if it has changed or if you have never filed a tax return).

1. 1. • • Number and details of children (especially if you have had a child during 2021)

1. 1. • • Number and details of dependent ascendants (if any during 2021)

 

download the 2021 income tax return guide for more detailed information

There are other factors that you have to take into account both to review the Draft provided by the Tax Agency, as well as to file your Income Tax Return yourself. And for this, I have prepared a Guide for your Income Tax Return, and it will be useful both if you work as an employee or if you are self-employed. You can download it from HERE.

 

 

The tax burden can vary and will depend on many factors, not only on the level of your income. That is why it is very interesting to review absolutely all the data and inform you of all the deductions that you can apply, especially the autonomic ones (which usually vary every year).

If you are a foreigner there is an exception that you may be familiar with and that you can apply for: the so-called Beckham Law. If you have not resided in Spain during the last 10 years, you will be able to pay a fixed percentage of 24% on your income.

If you need help with your Income Tax Return, remember that you can count on our help. Request a consultation directly HERE, write to us or request the procedure directly from the Virtual Store.

Leave me a comment below and if you have any questions, don’t hesitate to get in touch!

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