EXPERT ADVICE – May June 2023

The “declaración de renta” is the annual income tax return that taxpayers in Spain have to present to regularise their situation for the previous finan cial year. Personal income tax (IRPF) is levied on all income obtained during a financial year, including for salaried employment (payroll), self-employed income, and other income such as rents, dividends, etc. It is a direct and progressive tax, with the rate rising as income increases. It is calculated according to different IRPF brackets for earned income and the resulting percentage that is applied to obtain the amount of tax payable to the Spanish treasury (Hacienda). This year there have been changes to income tax brackets in Andalucía, Ma drid, Galicia, Valencia and Murcia. Income Tax Scale for 2022 – Up to €12,450 – 19% – €12,450-€20,200 – 24% – €20,200-€35,200 – 30% – €35,200-€60,000 – 37% – €60,000-€300,000 – 45% – More than €300,000 – 47% Who Must Pay Income Tax in Spain? Individuals whose habitual residence is in Spanish territory and those whose habitual residence is abroad in cases established in articles 8, 9 and 10 of Law 35/2006, of 28 November.



People obliged to file personal income tax returns in Spain: – Residents in Spain who are salaried employees with a single payer must make a declaration if their income is more than €22,000 gross per year. Sala ried employees with two or more payers must declare if their income exceeds €14,000 gross per year. – Self-employed professionals in Spain with total income from work, movable assets or real estate capital, or economic activities or capital gains of more than €1,000 and capital losses of €500 or more. – Those with total income from movable assets and capital gains subject to retention (withholding) or payment on account exceeding €1,600 per year in Spain. – Those who receive only imputed real estate income, full income from mov able assets not subject to retention that is derived from treasury bills and subsidies for the acquisition of subsidised or “VPT” housing, and other capital gains derived from public aid that exceeds €1,000 in Spain.

The deadline period for presenting income taxes this year officially began on 11 April and ends on 30 June. Welex Lawyers & Accountants C/ Ramón Gómez de la Serna 23, Local 7, Marbella Tel. (+34) 952 775 521

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