Carmen Vizireanu, autor en Asesoría Fenix

HOW ARE CRYPTOCURRENCIES TAXED? GUIDE

Prosecutor / June 13, 2022 March 11, 2026

One of the most frequent questions I receive at the consulting firm is how are cryptocurrencies taxed?

Cryptocurrencies are here to stay, and although this 2022 we have seen how the market has plummeted, they are still a source of passive income for many people. And if there is money and profit involved, so is the IRS!

Whether you are a passive or active investor or contemplate it as a possibility for the future, read on to see what the tax implications are.

REMEMBER: Ignorance of the law does not exempt you from complying with it!

You’re probably wondering…

- How does it affect your Income Tax Return?

- Are you obliged to declare the operations you carried out?

- What if you have only bought… Do you also have to report it to the IRS?

What are cryptocurrencies?

They are a new concept of currencies, outside the traditional control of governments and institutions. They are virtual (non-physical) currencies that use cryptography as a means of control. They can be exchanged for other traditional currencies and are used for all types of commercial transactions.

In Spain they have been authorized as a legal means of payment since 2015 and is one of the countries with the most Bitcoin ATMs in Europe.

When are cryptocurrencies taxed?

First, there is no obligation to file the Income Tax Return if the income obtained through payroll, interest, dividends, rents, cryptocurrency gains, does not exceed €1,000. If you want to go deeper into this topic, you can do so with the blog post “Renta 2021: Everything you need to know!“or by downloading the Guide from the section FREE RESOURCES.

If the total income is higher than that amount, you are obliged to file the Income Tax Return, and reflect the profits you have had from cryptocurrency transactions. If, on the other hand, you have had losses, you are not obliged to reflect them. However, from Asesoría y Consultoría Fénix we advise you to do so, since you will be able to compensate the possible gains in the future.

Whattransactions can be made with cryptocurrencies?

- Swap: exchange of one cryptoasset for another.

- Purchase: acquisition of cryptoassets with fiat money (event not taxable until sold or swapped).

- Sale: transmission of cryptoassets in exchange for fiat money.

- Mining: new block generation activity for blockchain networks

- Staking: keeping cryptoassets in a given environment (wallets, vaults, etc.), locked in order to obtain a certain return in exchange.

- Airdrops: free distribution (or sometimes in exchange for personal data, promotional activities, etc.) of tokens.

- Forks: forks of code that typically create a new project in the industry and with it, a new intrinsic cryptoasset.

- Lending: lending cryptoassets to a third party, and obtaining the principal together with interest at the maturity of the term of the loan.

- Yield Farming: similar dynamics to staking, with the difference that in this operation, the user provides liquidity to different pools using his tokens, to obtain a return in exchange.

How are cryptocurrencies taxed?

First we have to classify the type of income they have generated:

- Gains and losses on transmission: this includes exchanges, trades, purchases and sales and exchange of cryptocurrencies (including the cryptocurrency exchange).

- Capital yields: they refer to the obtaining of interests such as staking. This refers to the yields in the different platforms, such as the well-known Binance, which also works as a “virtual wallet” (where you store your cryptocurrencies and check their value) and also allows you to generate interest or automatic yields on the cryptocurrencies you have deposited and stored there.

- Profits and losses without transmission: These are airdrops, referral programs, hardforks and similar. That is, a cryptocurrency appears in our wallet that is obtained for a reason other than the transmission of an asset, such as the recommendation of a software or simply for having an asset.

- Economic activity: refers to the mining, trading or buying and selling of cryptocurrencies for third parties.

Gains and losses on transfer and capital gains (the first two) are taxed in the special part for income tax purposes and in the following manner:

- From 0€ to 6.000€, at 19%.

- From €6,000 to €50,000, at 21%.

- Over €50,000, at 23%.

- From 200,000 euros, at 26% (will be applicable for the 2022 Income Tax).

Gains and losses without transfer and economic activity (the last two) are taxed in the general part of the income tax, between 18% and 47%.

Inside the Declaration the box 1626 has been enabled and it is necessary to proceed as with any other increase of patrimony. On the one hand, there is a box to put the date and value of acquisition and on the other hand a box for the date and value of the sale.

How to reduce the tax burden for cryptocurrency transactions?

Two aspects must be taken into account:

- When determining the purchase value, you can add all the expenses (intermediaries) that had to be made for it and the same for the sale, in this case reducing the profit.

- When several transactions have been carried out during the year, the tax authorities establish the FIFO (First-in, First-out) criterion.

What is new in the Renta 2021 regarding HOW Cryptocurrencies are TAXED?

The approval of Law 11/2021, of July 9, on measures to prevent and combat tax fraud, has as its main objective to provide greater transparency in cryptocurrency transactions, establishing an obligation to report balances and holders of the coins in custody.

Two new informative obligations are established:

- For those companies that manage cryptocurrencies, to report each of their different balances, as well as the identity of their holders.

- For those exchanges that comply with the regulations, to inform about the addresses, tax identification, price and date of the operation carried out.

On the other hand, the regulations on the obligation to file Form D-6 have been modified and only those who hold more than 10% of the capital or voting rights of foreign listed companies will have to file it.

Cryptocurrencies and the Wealth Tax!

Although it is not known by many people, there is a Wealth Tax that is complementary to Personal Income Tax. This integrates all the assets that a self-employed person has and each Community establishes a limit from which the Declaration must be presented. The average is around 600.000€. Perhaps for this reason it is not so well known.

If your net worth is estimated at a figure close to this, check which is the limit for your Community since once it is exceeded you have the obligation to file the 714 form which is filed together with the Income Tax Return and the deadline for this is June 30.

Fines for not declaring cryptocurrencies in Spain!

It is not one of the news that we like to give in Asesoría y Consultoría Fénix, and that is why the established sanctions must be taken into account.

Users and investors who mislead and conceal information about their use and ownership will be fined up to €5,000. There will also be penalties when the delivery of information related to cryptocurrencies in portfolio is delayed. These fines are applicable to Model 720 inclusive. For the Renta, the fine is usually 26% of what has been missed to be paid as a minimum.

If you are not an active member of the crypto world, maybe this post has overwhelmed you a bit simply because of the technical and market-specific vocabulary. However, it’s just a matter of time and getting familiar with it.

As for the Income Tax Return, if you need help with it, you can count on the services of Asesoría y Consultoría Fénix for it. You can do it by contacting us from HERE.

And if you’ve made it this far, thank you for your time! If you have any questions or want to make a comment, share it below.

DEDUCCIONES AUTÓNOMICAS EN CATALUÑA 2022

AUTONOMOUS DEDUCTIONS IN CATALONIA 2022

Prosecutor / June 1, 2022 March 11, 2026

If you want to know what are the autonomic deductions in Catalonia 2022, do not miss this post.

The Autonomic Deductions represent those key aspects to be able to save in the Income Tax Declaration and also that are usually updated year after year. It is one of the main reasons why the figure of a Tax Advisor is so necessary.

The Autonomous Community Deductions are not the same for each Community. They vary. In this post I am going to focus on the Autonomous Deductions in Catalonia 2022 and how in Asesoría y Consultoría Fénix we are going to enter the final stretch with the Income Tax Campaign, I hope to come with another one, in which I can share information about other communities. I remind you that you can download your Guide for free, from our section of Free Resourcesto inform you of everything relevant to the Income Tax Return! So you won’t miss anything!

The Autonomous Community Deductions are tax advantages that each community offers to its residents. They consist of “discounts” that are applied to the total regional tax liability. This quota is obtained after considering your whole economic situation, subtracting the personal and family minimums, and after having applied the IRPF brackets.

The first requirement to be able to apply the deductions of an Autonomous Community, is to have resided at least 183 days in it (half a year) and within your Draft the section will be activated to add all the necessary information, once you have updated your Tax Address.

Let’s see what these are Autonomous Deductions in Catalonia 2022What they consist of and what are the requirements to be able to access them:

Deduction for birth or adoption of a child

If you have had a son (or daughter) in the year 2021, you can deduct €150 from the full autonomic quota, if you make the Individual Declaration. If you file Jointly, the deduction is 300€. It is 150€ for each one (mother and father).

Deduction for renting a primary residence

If you live renting, pay close attention to this point because you can deduct 10% of the total annual amount you paid. That’s right! There is a limit of 300€ or 600€ if you are a large family. That is to say, father, mother with three or more children. In this case, you deduct half each (300€ each).

To qualify for this deduction, at least one of the requirements must be met:

- Age 32 years or younger (tax accrual date)

- Having been unemployed for 183 days or more

- Have a recognized disability equal to or greater than 65%.

- Be a widow or widower and be 65 years of age or older.

In addition, the following requirements must be met:

- The sum of your taxable income (general and savings) minus the personal minimum and the family minimum cannot exceed €20,000 gross per year.

- In addition, what you have paid in rent in 2021 has to be more than 10% of your earnings (so that it is understood that it is a big expense for you).

- There must be a formalized legal contract between both parties (lessor and lessee).

Deduction for master’s degree and doctorate loans

Did you know that your training can be an expense included in the autonomous deductions in Catalonia 2022?

If you have taken out a loan to study for a master’s degree or doctorate, you can deduct an amount from what you have paid in interest. The deduction is not directly related to the amount you borrowed, but to the interest you paid to the entity that financed you.

The positive part is that there is no limit, the negative part is that it is applicable only in the case of student loans contracted through the Agency for the Management of University and Research Grants.

Deduction for widowhood

Another of the autonomic deductions in Catalonia 2022 is the deduction for widowhood. >It is applicable in the year when you become a widow or widower and in the following two years.

The amount you can deduct is €150, but if you have one or more dependent children under 25 years of age (who do not yet file the Income Tax Return on their own), the amount to deduct is €300.

Deduction for the promotion of the Catalan or Occitan language

That is to say, if you have donated some money to entities that promote the use of Catalan or Occitan you will be able to deduct 15% of your donation. With a maximum of 10% of the autonomous community tax. The entity in this case has to be one of the following:

The Institut d’Estudis Catalans

The Institut d’Estudis Aranesi-Aranese Academy of the Occitan Language

Any private non-profit organization

Any organization, collective or corporation whose purpose is to promote Catalan or Aranese and that is in the Census of entities for the promotion of the Catalan language of the Department of Culture and the Secretariat of Linguistic Policy of the Generalitat de Catalunya. De Catalunya

Deduction for donation to scientific and technological research

If you have made a donation of money, you can deduct 25% of that amount, with a maximum of 10% of the regional tax liability.

Deduction for renovation of the principal residence

If during 2021 you decided to renovate your apartment or house, you can recover some of that investment through this deduction. It is one of the most interesting and common, so I recommend you pay attention to it.

The deduction consists of subtracting 1.5% of what you spent on renovating the house, with a limit of 9.040€. A quite interesting amount and to be able to access it, the house must be the habitual one (or where you are going to live) or one in which you are owner or co-owner.

Deduction for environmental and heritage preservation

It consists of 15% of the money you have donated to entities for the benefit of the environment, conservation of natural heritage and land stewardship. The limit is 5% of your regional tax liability.

The entities that count are those registered in the Registry of Environmental Entities of the Gen. de Catalunya.

Deduction for being an angel investor or for investing in new entities.

An Angel Investor is someone who invests in startups or new companies in exchange for shares. What you can deduct is 30% of the amount, with a limit of €6,000 for normal companies. But if the company in which you have invested is created or is owned, even in part, by a University or a Research Center, what you can deduct is 50% of the amount contributed, with a maximum of €12,000.

There are several requirements. On your side:

- What you invest together with the part of the company held by a relative of yours cannot be more than 35% of the business.

- In the case of a capital increase, the company must have been founded in the fiscal year (2021) or the two preceding years.

- You may not have any professional or employment relationship with the company in question.

- You will be obligated to remain an investor in such company for 3 years.

As for the company, it also has to meet certain requirements. Quite a few, too:

- It must be a Sociedad Anónima (S.A.), a Sociedad Limitada (S.L.), a Sociedad Anónima Laboral (S.A.L.) or a Sociedad Limitada Laboral (S.L.L.).

- It must have a tax domicile and registered office in Catalonia.

- It is mandatory that it develops an economic activity. If it is an entity for which you do not have to work and which does not generate wealth, it does not count.

- At a minimum, you must have one person hired.

- It cannot be a real estate or property management company (buying and selling of properties).

- The company may not be publicly traded.

- The annual turnover of the company must be less than 1.000.000€.

Deduction for having to file income tax returns for having more than one payer.

This deduction is especially interesting for those people who have been in ERTE. So, if you have had more than two payers you can apply this autonomic deduction. The amount to deduct is the result of subtracting the state integral quota from the autonomic integral quota. The difference is what you can at the same time subtract from the autonomic quota.

It sounds complicated and complicated, that is why I remind you that you can count on the services of Asesoría y Consultoría Fénix for any management. Especially if you need help with your Income Tax Return. Contact HERE

registro de operadores intracomunitarios

STEP BY STEP – Registration of intra-community operators

Prosecutor / May 17, 2022 March 11, 2026

Have you ever thought about buying or selling products and/or services in another country belonging to the European Union? To do so, you should know that registration in the Register of Intra-Community Operators is a basic requirement to be fulfilled.

In the Tax Consultations I receive, both from regular and potential clients, this represents a very frequent topic. Especially when it comes to digital businesses.

Even if your initial intention is not to sell outside the Spanish territory… you may not be aware that you have suppliers that do not have tax residence here. To give you basic examples: Facebook, Google, some Amazon sellers or even your hosting provider.

Do you know how they affect your tax obligations?

…And with the economics of your business?

Let’s go step by step and I will solve all your doubts…

What are intra-community transactions?

These are purchases or sales made with suppliers or customers that are located in another member state of the European Union. If you are in doubt about which countries belong to the EU, you can check at this link.

These operations are exempt from VAT (according to EU VAT regulations), provided that certain conditions are met, the first being that both the seller and the buyer are professionals or companies registered in the Register of Intra-Community Operators (ROI), also known as VIES file.

The Registry of Intra-Community Operators (ROI) is a large database where professionals and companies from all EU member countries are registered. As it happens with the Census Registration with the Tax Authorities, where the beginning of an activity is communicated, the same happens with this Registry. An application must be submitted, indicating the registration in this census database.

Is registration in the Register of Intra-Community Operators mandatory?

The obligation depends on the fiscal approach and the obligations you acquired when you initially registered with the tax authorities with the activity. For these operations to be considered VAT exempt, the registration of both parties (supplier-customer) is mandatory.

For example, if your activity is considered VAT exempt, registration is not compulsory, since no VAT settlements are made.

But if your activity is subject to VAT, and you file a quarterly form 303 to settle the VAT, it is mandatory.

How do I apply for registration in the Register of Intra-Community Operators(ROI)?

It is processed by means of Form 036, from the Electronic Headquarters of the Tax Agency and it is indicated from which date the operations begin.

It can be requested with the initial registration of the activity, or later. The difference is that when requesting the registration with the registration of the activity, this procedure is consolidated.

Otherwise, you have to wait for the Tax Authorities to confirm the registration and the assignment of the VAT number. In some occasions it may ask for additional information to confirm the registration in the ROI.

What is the VAT Number?

This number is the one that will confirm your registration in the ROI, and will be the one that will identify you to your suppliers and/or customers in the EU.

You will have to substitute a DNI/NIE/CIF for this number, which is none other than your own DNI/NIE/CIF with the letters ES in front (identifying professionals and companies with tax residence in Spain).

From the moment you have it, the VAT exemption is applicable and you can invoice your EU customers without VAT. And also, by providing this number to your EU suppliers, they will be able to issue you the invoice without VAT.

If you have doubts, or you want to make an inquiry about whether someone is registered in the ROI, you can do it from this link.

What are the implications of performing Intra-Community Transactions?

The exemption has been established to simplify tax (VAT) liquidation procedures; however, these operations are controlled to a certain extent by the Public Administration.

This implies the obligation on the part of the Spanish businessman, if he carries out purchase and/or sale operations within the EU, to present the Form 349 where he reflects the information regarding the other party (supplier and/or client) and the amounts of the purchases and/or sales.

The same information must be transferred in form 303 for the same period.

If more than one year has passed without any operations having been carried out, and therefore no returns have been filed, it is very common for the Tax Agency to send a notification in which it requests the professional/company to process the deregistration. This is done in the same way that the Registration was requested, with the difference that the option “Deletion” is marked.

On other occasions, it is the Tax Agency itself that manages such cancellation ex officio.

If you are ever in doubt as to whether you are still in the Registry, I recommend that you confirm it through the link above. You may be in for a surprise, especially if it has been a long time since your last purchase or sale.

When do I file Form 349?

The form can be filed on a quarterly basis when neither during the reference quarter, nor in each of the four previous calendar quarters, the total amount of the transactions (delivery of goods and/or services excluding VAT) exceeds €50,000.

Otherwise it would have to be submitted on a monthly basis.

Filing deadlines are the usual ones: from April 1 to 20 for the months of April, July and October. And from January 1 to 30 for when the fiscal year closes.

In the case of monthly settlements, the deadline is: from the 1st to the 20th month following the month in which the tax return is to be filed.

It is important to emphasize that only transactions with other companies are presented. In the case of sales to individuals, they are not included. And as all the Declarations, if they are not presented within the stipulated term, they entail a sanction.

How does it affect the company’s economics?

At all times we have talked about VAT and how this rule affects the liquidations that the self-employed or companies have to make. And it has other fiscal and therefore economic implications.

The first is that if you have a European expense (EU supplier), and in order to be recognized as such and avoid misunderstandings with the tax authorities, it would be advisable that you are registered in the ROI.

Remember that deductible expenses are those related to the activity performed (professional or business). If you want to know more about them, download for free the Guide to Deductible Expenses.

On the other hand, if you do not register with the ROI, your supplier is obliged to issue you a VAT invoice, and you will not be able to deduct the VAT.

You will be able to recover it, requesting the return of the amount to the Treasury of the country in question. Action that takes time, and probably money.

I hope you have found all the information interesting and useful. Remember that you can count on the Services that Asesoría y Consultoría Fénix offers, and in case you want to clear up any doubts, I will always recommend you a 1:1 Consultation since it is focused on your particular case.

The regulations are very broad and that is why the information that is usually found is very generic.

With personalized service you get clarity and certainty!

Thank you for making it this far, and I encourage you to share your experience below – you can help more people with it!

5 KEY POINTS IF YOU BECOME SELF-EMPLOYED!

Entrepreneurship / May 2, 2022 March 11, 2026

Are you thinking about becoming self-employed and starting a business?

You have landed in the right place because I am going to reveal to you the most important things you need to know and do before registering with the Social Security and Hacienda.

When I am asked for consultations and information to undertake in Asesoría y Consultoría Fénix, these revolve around the following 5 points that I take this opportunity to share:

LOCAL and AUTONOMIC AID if you become self-employed

The first thing first of all is to find out about local and regional aid when it comes to entrepreneurship. They may vary according to the type of business, investment, whether or not people are hired, etc. At state level there are also subsidies, the best known of all is the “flat rate” in the self-employed fee paid to the Social Security.

But most of them are managed by the Autonomous and Local Communities themselves. These are aimed at entrepreneurs, self-employed and SMEs, with 4 main blocks:

Promote youth entrepreneurship (under 30 years of age).
Incentivizing Innovation
For Business Management and Strategy
For Internalization

Here it is worth mentioning the existing lines of financing, which can be a very good option when capital is required.

How can you get more information to register as a freelancer?

The first starting point would be to contact the City Council of the locality where you will carry out your activity, whether you need a place or not. There they will put you in contact with the person in charge.

At Province and Community level, start with the website of each one of them. I share with you the websites that we use the most in Asesoría y Consultoría Fenix, the ones of the Generalitat de Cataluña (especially for the province of Barcelona), of the Community of Madrid and Castilla la Mancha

On the other hand, I leave you another search engine. The Directorate General for Industry and SMEs through its SME Platform offers you its aid portal where all the measures are collected in the form of: subsidies, financing, tax incentives or guarantees offered by public administrations and their agencies, to encourage, maintain and develop economic activity and entrepreneurship. Self-employed and SMEs are included:

ACTIVITY LICENSE

If you are going to register as self-employed and you are going to need a place for the activity, you have to take this point into account. It can become a great adventure if the premises need renovations, due to the amount of bureaucratic procedures and the process that takes a long time. It is not only a matter of adapting the premises to the activity to be carried out, but also of complying with certain regulations. Be that as it may, even if it is the simplest case, you would need an Opening License and the approval from the Health Department.

Where to start?

Again by the Town Hall of the locality where you plan to develop the activity, usually with Urbanism. There they will inform you about the procedures to follow, documents to fill out, and fees to pay.

CIVIL LIABILITY INSURANCE

Consider whether Liability Insurance is necessary and ask for quotes!

It is not mandatory except in certain cases, although for most it is recommended! For some it is a life saver

No matter how you look at it, you are responsible for your actions and you are also human! A liability insurance serves you to prevent the economic damage that can be caused by repairing the damage caused to a third party! It covers both material and personal damages, and what I recommend is that you ask for a quote from a trusted insurance professional. Compare several.

DIGITAL CERTIFICATE

Although there are other options, I still consider the Digital Certificate essential. After the last few years, if you don’t have it, my advice is that you should ask for it as soon as possible. It is an encrypted file that integrates the identification data of a user.

How to obtain it?

By submitting an online application to the FNMT and then proving your identity at any office that has signed a collaboration agreement (TG Seguridad Social, Agencia Tributaria, etc.). In Barcelona, you can request an appointment at any City Hall where you are registered to identify yourself so that they can issue it for you.

Once this step has been taken , it is downloaded and installed in the browser!

You have to keep in mind that the device from where it is requested and where it is downloaded must be the same. It is no longer about the convenience of being able to do business from wherever you are without moving, in many cases it is mandatory in this way!

And best of all, you can install it on your cell phone, no computer is required!

What is it for?

To carry out or consult procedures with: the Tax Agency, Social Security, DGT, DG of the Civil Guard, INE, Bank of Spain, BOE, different Ministries, as well as with the Administrations of the Autonomous Communities or Local Administrations.

Here is the link to the FNMT electronic office in case you need to request it.

REGISTRATION WITH SOCIAL SECURITY AND TAX AUTHORITIES

Once the previous four points have been reviewed and completed, it would be time to register as self-employed with the Social Security and Tax Authorities.

Be careful if you had to incur expenses before this moment, since for the tax authorities they will not be deductible. For the tax authorities, only those expenses that, being related to the activity, are incurred after the registration (start of the activity) are considered deductible.

It is very important to request a Consultation with a Professional who will advise you before planning your entire project, both in terms of tax advantages and the best option that fits your project, as well as the financial aspects that you must take into account.

On countless occasions I have been approached by people who had lost a lot of money due to this lack of knowledge. That is why I decided to publish this post and share the information.

You can count on the services of Asesoría y Consultoría Fénix if your case is similar and you will receive fiscal and financial guidance that will make the difference for your venture.

Returning to the case above, if it is necessary to incur in some expenses to undertake, Hacienda gives you the option to present a Previous Registration, by means of the model 036, so that they can be considered deductible. That is to say, you communicate (inform about) the intention to develop an activity (in this model you declare which one and from which date) and when you are ready to start, you communicate the definitive registration by means of the same model (together with the registration in the Social Security)!

In order to register with the Social Security, the application for registration with the RETA (Special Regime for Self-Employed Workers) must be filled out, and the Form 036 (or 037) must be filed with the Tax Authorities. For some years now, both organizations have insisted on the presentation of the above-mentioned forms on the same day (and with the same date) to avoid problems when crossing data and to consolidate the registration as self-employed.

What do you need to be clear about in order to manage both discharges?

The IAE, i.e. the epigraph of your activity (professional or business).
The CNAE, which is the same, but under a different codification. This is only required for registration in RETA.
Choosing a Mutual
Have a bank account in your name where you will have to pay the self-employed fee (RETA registration).
The address where you will carry out your activity. If you work from home, you can put this address, as well as the percentage destined to it. If you do not have a place, the one in your province is considered.
Tax obligations (e.g., VAT, Personal Income Tax, Payments on account)

Remember that if you need help to manage the registration as an autonomous, or you would like to undertake and expand all the information with Asesoría y Consultoría Fénix, you can contactor request a Consultancy from HERE.

Is there anything that has caught your attention or that you would like to clarify?
I read you in the comments

Deductions for housing in income tax returns

Prosecutor / April 19, 2022 March 11, 2026

Whether you live in Spain or have a home here, you should know what the implications are, and how you can benefit from the deductions for housing in your income tax return.

Taking advantage of the fact that we are in the middle of the Income Tax Campaign, I am going to share everything related to housing.

Since a few years ago, the first thing that has to be ratified is the fiscal address. And here there are many options, since you can have a mortgage that is linked to your habitual residence or not, you can live or have a rented apartment, or simply live in a relative’s or friend’s house as usufruct.

What housing deductions are there in the Renta if you have a mortgage?

The first thing to take into account to know if you are eligible for any of the deductions for housing, is if it represents your HABITUAL HOUSEHOLD. If so, the first good news is that it is not taxed, it is considered exempt. The second good news is that you can deduct part of the payments linked to the mortgage.

To do so, keep the following in mind:

- In order to apply the deduction for the principal residence, the mortgage loan had to be constituted before January 1, 2013 (and you had to have applied the deduction to deduct the mortgage in 2012 or in previous years).

- If so, the amount to be deducted is 15% of the amount paid (in 2019 in this case) with a maximum amortized amount of €9,040. That is to say, we can save a maximum of 1.356€ in IRPF per year (0,15*9.040€=1.356€).

- If there are two holders, it is divided in the proportional part that corresponds to each one.

Money saving tips:

- In case of early amortization you could add the amount to your monthly payments, but remember that the limit is 9.040€ (you save interest and reduce the IRPF).

- If there is a subrogation of the creditor (change of bank) you can still apply the tax credit.

- If you take out a new mortgage to cancel the one you have, the Treasury applies the same criteria as for the subrogation (for the initial amount requested; if you ask for more money it is not taken into account).

What happens with mortgages contracted from 2013, especially if it was carried out last year? In this case I advise you to check the deductions of your own Autonomous Community. Many of them have reductions and tax advantages. If you need help with your Income Tax Return, especially to review this type of deductions, remember that you can contact and or request this procedure from our Store. The tax benefits at regional level are updated every year, and therefore it is advisable to consult a Tax Advisor.

What are the rental implications of having a second home?

If you have a second home, or several, consider it as an investment property and not only that, but also as a possible passive income. If you have it without renting it, not only you are not having any income, but also you have the obligation to pay taxes on it. That is to say, yes or yes you pay. Whether you receive income from the rent or not.

There are many cases where you have a second residence, or simply the proportional part of a property that you inherited. For the tax authorities it is an “economic capacity” that is to say, it offers you the opportunity to obtain an income.

How is it taxed?

The imputed rent will be 2% of the cadastral value of the property (or 1.1% if this value has been revised in the last 10 years).

I insist: if you have a second home, and you have not had it rented 365 days a year, you have to apply the “formula” above in the proportional part of the year that it has been “for your enjoyment”.

How is a rented property taxed for income tax purposes?

There can be 2 cases and the taxation is different.

1️ – USUAL RENT.

The income obtained from the rent is reduced by all the expenses necessary to obtain it (mortgage interest, maintenance and repair expenses, property tax, insurance, garbage and community fees, amortization of the property).
A reduction of 60% is applied to this result if it is the tenant’s main residence, and the net yield is obtained.

Note: This reduction does not apply if it is a seasonal or vacation rental, or if the premises are for a business.

GARAGES AND STORAGE ROOMS

The yield from parking spaces and storage rooms that are rented jointly with the dwelling is included in the yield obtained by the latter.

When they are rented separately, they are treated in the same way as any other property(the 60% reduction is not applied in the calculation of the yield because they are not the tenant’s habitual residence).

2 – TEMPORARY RENTAL OR AS TOURIST HOUSING

The treatment is the same as in the case of the usual rental (permanent housing) with the difference that the expenses will be proportional to the time that the property was destined to this type of rental and it will also be taken into account that the 60% reduction will not be applicable.

What does it mean? That we have to make a rule of 3.

In general the expenses are usually annual (IBI, community, insurance, etc.) so you will have to take into account that you can only subtract from the income received the proportional part of the expenses.

EXAMPLE: The property was intended for tourist rental for 3 months. The expenses would be obtained in the following way: Total Expenses * 3/12 (months)
And for the remaining time, that is to say for what is missing until fulfilling the period of one year, it would be taxed for being a second home applying also the rule of 3.

What are the deductions for housing in the Renta if it is rented?

If you have managed to become independent and pay rent for your primary residence, you are also eligible for housing deductions in the Income Tax Return, and for this you must take into account the following!

- In which Autonomous Community do you live. Most of them have a deduction in the IRPF and the percentage to apply varies a lot depending on the place.
  In each one the percentage varies depending on the age, if it is about localities with a very small number of inhabitants, if you have or not disability, if you do not exceed a certain amount in the taxable base and a long etc.

- On the other hand, at state level there is a deduction for those tenants who have signed the contract before January 1, 2015 and whose taxable base is less than €24,107.20. The percentage to be applied is 10.05% (on a maximum base of €9,040) and affects only the full state tax liability.

If this is your case, you should know that it is compatible with the regional deduction.

This is the most relevant information that you have to take into account for your Income Tax Return, as far as housing is concerned, whether it is a habitual residence in property or not, as well as if it is a rented property or not. Remember that you can count on help or request a Consultancy to review your particular case from HERE.

Of course, if you have any questions, you can leave them in comments!

Thanks for reading me and if you want to be more up to date with what I publish, I recommend you to follow me on Linkedln or Instagram: @carmen.vizireanu

Income tax return 2021: Everything you need to know!

Sin categoría / April 4, 2022 March 11, 2026

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).

Once this point has been reviewed to confirm whether or not you are obliged to file the Income Tax Return, another important aspect is related to tax residency. tax residence. By fiscal residence we do not mean where you live, but the condition that you acquire and that entails the obligation to pay an amount of taxes (more or less favorable …. as the case may be).

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:

2. - - Check and ratify your tax domicile

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

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!

Thanks for reading me and if you want to be more up to date with what I publish, I recommend you to follow me on Linkedln or Instagram: @carmen.vizireanu