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TAXES

Who needs to file an income tax return in Spain in 2021-2022?

It will soon be time to fill out Spain’s annual tax return - 'la declaración de la renta'. Here’s what you need to know about it, who needs to complete it and the key dates to watch out for.

Published: 25 March 2021 16:24 CET
Updated: 16 March 2022 07:42 CET
Who needs to file an income tax return in Spain in 2021-2022?
Photo: Cesar Manso/AFP

The general rule is that anyone who lives in or stays in Spain for more than 182 days a year is considered to be a tax resident and must fill out the annual income tax form. The Spanish tax year is the same as the calendar year.

In more complex situations, where you split your time between several countries, or if you have property and/or business interests in other countries, there are international tax treaties, which state where you should be considered a resident and where you need to declare your income for tax purposes.

Anyone resident in Spain who earned €22,000 and over in 2021 must present an income tax return. 

All tax payers whose annual income is less than €22,000 will be exempt from filing a tax return, but only if your income only comes from a single source.

If you get your income from more than one client or job however, such as teachers working for different language schools, businesses or autónomos (self-employed), then you will still need to complete it, even if you have earned under €22,000.

There is also an exemption from filing if you only had a very small amount of income from capital gains and savings, of less than €1,600, but this must have already been taxed at source.

This exemption is meant to apply to income that has already been taxed. So, if someone has an untaxed foreign employment (e.g. occupational pension) income of less than €22,000, tax experts still advise that you file a Spanish tax return.

What are the key filing dates you need to know?

Generally, you will need to submit your tax return by June 30th, however, there are several other key dates that you should know, depending on if you want to present your declaration on the phone or in person. 

April 6th: The start of the 2021-2022 income campaign, when online presentations open.

May 5th: From this date, you can submit your tax return by phone.

June 1st: From this date until June 30th, you can present your income tax return in person at the various Agencia Tributaria offices around the country

June 27th: The deadline by which you must submit your tax return by if you want to pay by direct debit.

June 30th: The end of the 2021-2022 income campaign.

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WORKING IN SPAIN

What’s the law on having two jobs in Spain?

With the current cost of living crisis, working more than one job is becoming more and more common, but what are the rules on working multiple contracted jobs in Spain and the tax implications of this?

Published: 25 June 2024 13:24 CEST
What's the law on having two jobs in Spain?

Often it’s necessary to have more than one job at a time, particularly if they don’t pay well and you’re struggling to make ends meet.

In fact, historically that is part of the reason why establishments stay open so late and why siestas were so common – because people would have one job in the morning and then go home for a rest before starting their second.

This is still commonplace today and is in fact becoming more and more popular, with the rise in the cost of living, driving an increasing number of people to take up a second job.

Whatever your reasons for having two jobs or more – to save up more money or gain extra experience and work your way up, there are some financial implications you should be aware of.

What does the law say?

Currently in Spain, there is no restriction that prevents a person from having a second job, with two contracts in two different companies, for 80 hours a week.

According to data from the first quarter of this year from the Active Population Survey (EPA) prepared by the National Institute of Statistics (INE), the number of people with a second job in Spain stands at 591,300, although according to affiliation data of Social Security, some 800,000 people have more than one position.

This trend has been seen in each quarter of the EPA since 2022 and, right now, is close to a historic number.

Categories you should be aware of

There are two types of categories when you work in multiple jobs in Spain – these are pluriempleo and pluriactividad. Pluriempleo literally means multiple employment. This is understood as a person who works as an employee in two or more companies under the same Social Security regime.

In this way, it differs from pluriactividad or multiple activities, which is when people work for others and have their own business at the same time or their second job is under a different social security regime.

For example, if you work as a hotel receptionist in the morning and then in a restaurant at night, these positions are considered to be part of the same regime, but if you work in a hotel in the morning and then as a nurse in a hospital at night, these are two different careers and therefore social security regimes.

If you’re self-employed as well as having a contract job, this is a slightly different situation. To find out more, read our guide below. 

READ ALSO – Self-employed in Spain: What are the tax rules if you do two or more jobs?

What are the tax and social security implications?

If you have two separate jobs, you are required by law to report your situation to Social Security, and to each of the companies you’re employed by.

When it comes to the Tax Agency, it’s important to note that you are obliged to submit your yearly Income Tax return (Renta), when you are paid by more than one employer and your income exceeds €22,000 per year.

READ ALSO – EXPLAINED: The key changes to Spain’s 2023/2024 annual tax return

In 2024, the maximum social security contribution base for employees has been set at €4,720.50 per month. This means, that regardless of whether your income from two positions exceeds this amount, the social security base will not be more than this.

The amount of IRPF (Personal Income Tax) must also be taken into account. If you are combining two contracts, it’s important to calculate the withholding tax.

This is because companies calculate personal income tax based on your annual compensation expectations. They do not take into account the existence of another job, so they apply the discount depending on what they are paying you only.

This means that they will keep less than what they should and when you’re filling out your Renta yearly income tax return, you will most likely have to pay the extra to make up the difference. 

In this case, you should request that both companies calculate personal income tax according to your earnings, so that you can get a good idea of the amount you have to pay working two positions.

You may also consider hiring a gestor or accountant to file your yearly tax return for you if you have a particularly complicated situation and work three or more jobs for example. 

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