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TAXES

The new tax laws in Spain’s Andalusia in 2022: What you need to know

The Andalusian regional government has announced several major changes to its tax laws which come into force in January 2022, affecting everything from personal income tax to inheritance tax. Here’s what you need to know.

Published: 10 January 2022 11:46 CET
Updated: 16 January 2022 08:26 CET
Taxes in Andalusia in 2022.
Taxes changes in Andalusia. Photo: Frank Nürnberger / Pixabay

Andalusia’s tax reforms were passed in October 2020 and set out significant reductions in regional taxes from January 1st 2022, the date in which they came into force for taxpayers.

The changes will affect four of the main taxes which Andalusia has jurisdiction over.

These include Personal Income Tax (IRPF), Wealth Tax (Patrimonio), Inheritance and Donations Tax (ISD), and Property Transfer and Documented Legal Acts tax (ITPAJD).

The new laws also include an increase of the income limit threshold to benefit from tax deductions.

It will go from €19,000 per year to €25,000 for individual taxes while in the case of joint tax declarations, the bar will be raised from €24,000 to €30,000 in 2022.

READ ALSO: Andalusia unveils plans to become Spain’s least bureaucratic region

IRPF

One of the key changes in Andalusia’s tax laws will be in the category of personal income tax or IRPF.

In 2022, this will be reduced to the lowest rate of 9.5 percent, the minimum required by Spanish law.

This update brings Andalusia in line with other regions such as the Community of Madrid, which is famed for its low tax rates and gave the green light for the same change in December 2021.

READ MORE: Why you should move to this region in Spain if you want to pay less tax

The new regulation also raises the regional deduction for investment in first homes to five percent both for young people and for owners of officially protected homes.

In addition, the law will also improve deductions on rent for various groups, including people with disabilities, those over 65 as well as victims of domestic violence or terrorism. The limit will be €25,000 for individual taxation and €30,000 for joint taxation.

The tax benefits related to births and adoptions will also increase. Deductions of up to €200 can be made, which is four times more than previously allowed. In the case of families living in depopulated areas, the threshold will be increased to €400. Greater reductions will also be available for large families, those needing domestic assistance and those with disabilities.  

Two new exceptions have also been created –  one to offset educational expenses with a limit of €150 per student and another for donations that have an environmental purpose. 

READ ALSO: Why you should move to this region in Spain if you want to pay less tax

Wealth Tax

Another of the changes affects the souther region’s Wealth Tax, which has been lowered for people with disabilities.

The Andalusian government has raised the limit to €1.25 million, which is almost double compared to the €700,000 which was exempt for people with a degree of disability between 33 and 65 percent up until now.

Taxpayers who exceed the 65 percent disability threshold will be exempt from this tax as long as they do not have assets above €1.5 million. 

Inheritance Tax 

The changes also include the reduction of Inheritance and Donation Tax in Andalusia. Rates have been reduced to between 7 and 26 percent in 2022.  

According to the Andalusian government’s calculations, the combination of the rate and the coefficients will mean that the marginal tax rate will not exceed 45 percent.

Up until now, it could reach up to 70 percent. This measure will especially affect family groups including brothers and sisters, cousins, nieces and nephews, and aunts and uncles.

There will also be a reduction in the tax base for first homes or habitual residences, after a death, or by donating to descendants with a disability.

The base rates that apply to companies and businesses will also be reduced.

Property Transfer Tax

The Andalusian Government has also agreed to maintain the reductions that were already being applied to the Property Transfer or Transmission Tax. The general rate will remain at 7 percent, while notarial documents will be taxed at 1.2 percent. This has been in operation since the end of April 2021.

Offspring under 35 years of age, large families or people with disabilities will also benefit from a reduced rate of 3.5 percent. But in 2022 there will be an increase in the maximum value of the home on which it is transmitted, so there is a little more margin, depending on the group to which they belong.

A reduced tax rate of 6 percent on the acquisition of homes with a value of €150,000 or below will also be introduced in 2022. This will be open to anyone living in Andalusia, without any other additional requirement.  

A one percent reduction in tax will also be applied to the purchase of non-polluting vehicles. 

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For members

PADRON

When and how you need to renew your padrón certificate in Spain

The padrón document you get when registering at your local town hall in Spain must be renewed periodically. Find out when and the steps on how to do it.

Published: 22 April 2024 13:09 CEST
Updated: 27 April 2024 10:18 CEST
When and how you need to renew your padrón certificate in Spain

The padrón certificate is used to show proof of where you live. Your town hall – or ayuntamiento – uses it to find how many people are living in the area and what their ages are.

The number of people living in each area will depend on how much money they will receive from the government. They use this money for local services such as schools, health centres, parks and police officers.

If you are a non-EU citizen with temporary residence (less than 5 years) in Spain, then you will need to renew your padrón certificate every two years.

You will also need to renew your padrón each time you move house, as it should have your current address. 

For some bureaucratic processes in Spain, you will also need to be able to show you have a padrón certificate that’s no older than three months. 

Depending on where you live, there are different ways you can renew it. This could be in person, online or by post.

READ ALSO – Padrón: 16 things you should know about Spain’s town hall registration

Generally, in order to renew your certificate, you will need:

  • A recent gas, water or electricity bill in your name
  • Your rental contract and receipt of your last rental payment
  • If you own your own property, you will need to show evidence that you own it, such as the property deeds

You will also need to show:

  • A valid residence card such as TIE
  • A valid passport
  • In addition, it is also advisable to bring your previous padrón certificate

For children you will also need the following:

  • Records of your digitised family book (libro de família)
  • A valid passport or residence permit of the minor
  • A passport of one of the parents which also contains the identification data of the minor
  • Birth certificate of your child

If you do not live in the same household as your child, you will also need:

  • A delegation for registration form, signed by the parent who lives with the minor.
  • Photocopy of the valid identification document of the parent who lives with the child.
  • In the case of minors under 14 years of age, it will not be mandatory for them to have an NIE, passport or identification document from their country of origin.

Remember that all your documents should be officially translated into Spanish or another local language such as Catalan, if they aren’t already.

READ ALSO: Can I get my padrón online in Spain?

In person

If you are applying in person, you will need to make an appointment at your local Ayuntamiento or town hall.

When the date for your appointment arrives you will need to complete the renewal form, which will most like look something like this, but may change depending on where you live. 

You will also need to bring originals and photocopies of all the documents above.

Online

If you have a digital certificate or Cl@ve PIN you are able to renew your padrón online. You will need to do this via your local government website.

First, you’ll need to identify yourself digitally with your digital certificate or Cl@ve PIN.

Next you will have to complete the renewal form and then attach digital copies of all the above documentation that’s required.

Then you’ll need to submit and sign it digitally.

By post

Although this is not the most common way to renew your certificate, some town halls may let you apply by post and will have details of the relevant address to send your documents and forms to online. 

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