Annual Tax Return for Residents (declaración de la renta)

Annual Resident Tax Return (Declaración de la Renta)

It is advised to present your tax return annually if you live in Spain as a resident.

To briefly describe how it works, the Hacienda (Spain’s central tax office) has fiscal information about all Spanish residents (both national and international). When you present a tax return, you are either agreeing with the fiscal information they have about you (and then you pay or receive back the relevant amount of tax) or you present documents to try to clarify and possibly reduce the amount of taxes that they believe you owe.

The Hacienda has a lot of power available to it and it can access any records (both public and private) whenever it wishes. 

It may be possible that the Hacienda owe an individual money because they have paid too much tax, as is sometimes the case for low earners.

The period to present your tax return runs from 1st April until 30th June 2021 and covers the previous tax year (2020 in this case)

It is advisable to present a tax return if 2020 was your first year as a fiscal resident in Spain.  There is currently a dual tax agreement between the U.K. and Spain which ensures you will not pay tax twice.

Incomes from rentals are generally taxed in the country where the property is located.

It is important to add that all tax circumstances should be assessed on an individual basis.

 At LingoMar we are currently offering our resident tax return services for 50 euros (+IVA) for the first person and 25 euros (+IVA) for the second person in the same household.
(this is an offer on our standard rate, if an individual has exceptional or complicated tax circumstances, this price is subject to change)
 
The documents that we can use to scrutinise and present your annual tax return to the Hacienda are as follows:
1. A photocopy of your N.I.E. and passport + the last 5 digits of your current bank account (this must be in the same name as the person presenting the tax return)
or
2. A copy of the previous years’ tax return + the last 5 digits of your current bank account (this must be in the same name as the person presenting the tax return)
 
In addition to these documents, it would be beneficial for you to send us any of the following documents that are relevant to your circumstances and you are able to obtain.  This ensures that your declaration is presented accurately to avoid any delays and/or repercussions from the Hacienda:
 
– Certificado de Empresa (only if you are or were employed by an individual or business) – This is a certificate which you can obtain from your employer or previous employer.
 
– Certificado de prestaciones – This is a document which you receive if you claim or have claimed benefits or financial help from the state in the previous tax year.
 
– Your ‘IBI’ bill or ‘Escritura’ (House deeds) for the previous tax year.
 
– A fiscal account summary document from your Spanish bank for the previous tax year  (certificado bancario de prestamos)
 
– A rental contract (if you have rented your property to another individual) plus any receipts of rental payment (for rental payments that you have received).
 
– Life insurance, home insurance or medical insurance policies.
 
– Any documents to demonstrate investments such as stocks or shares or investment accounts.
 
– Any payments you have made to the social security.
 
– Documents to demonstrate you have won financial prizes such as the lottery.
 
– Documents to demonstrate a private pension plan.
 
– Documentation to demonstrate that you have bought, sold, donated or lost property in the previous tax year.
 
– N.I.E and passport of any dependants that live with you.
 
–  Any bills to demonstrate that your child/children have gone to paid childcare (Maybe you paid by bank transfer?).
 
– Any additional documentation which shows income that is not covered in any of the previous documents.
 
We appreciate that some, all or none of the documents named above are relevant to your personal situation. The more information you present to the Hacienda, the more accurate your tax return will be. 
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