Read news from:
Austria
SHARE
COPY LINK
For members

TAXES

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

Spain's annual tax return period kicks off on Wednesday April 3rd, and there are several changes you should know about for the 2023/24 tax return, known as 'la renta' in Spanish.

Published: 2 April 2024 12:57 CEST
Updated: 6 April 2024 10:59 CEST
EXPLAINED: The key changes to Spain's 2023/2024 annual tax return
Photo: charlesdeluvio/Unsplash.

It’s that time of year again in Spain – tax season!

Personal income tax is known as IRPF in Spain (Impuesto sobre la Renta de las Personas Físicas) but most Spaniards simply refer to it as la renta because the  tax return itself is called la declaración de la renta.

This year, you must file your taxes for the previous financial year – that is to say, 2023. The campaign starts on Wednesday 3 April 2024.

From that date, you can present your taxes for 2023 online, and the campaign this year runs until July 1st.

Key dates for Spain’s 2023/24 tax return

For the 2023 fiscal year, you must file your tax return between April 3rd-July 1st 2024.

The key dates are as follows:

April 3rd – July 1st 2024: online filing
May 7th – July 1st 2024: by telephone (appointment request from 29 April-28 June)
June 3rd – July 1st 2024: in person at its offices (appointment request from 29 May-28 June)

Key changes to Spain’s 2023/24 tax return

Self-employed

As of 2024 all self-employed people (known as autónomos in Spanish) are now obliged to file a tax return, regardless of their income level. Previously, only those who earned more than €1,000 a year had to make an IRPF declaration.

Self-employed workers who are taxed in the module regime will see the reduction on net returns increase from 5 percent to 10 percent, and those who work from home can make a deduction of up to 30 percent on expenses related to their work activities.

Self-employed people taxed under the estimation system, which you can read more about here, will now be able to make an additional deduction of 2 percent, raised to 7 percent.

The types of tax deductions those on this type of regime can apply include:

  • Monthly Social Security contributions
  • Deductions for the vehicle usage (if it applies to your business)
  • Deductions for business-related training expenses
  • Special deductions, such as research and development expenses
  • Tax relief at a regional level

READ ALSO:

Electric vehicles

Taxpayers who bought (and registered) an electric vehicle in Spain in 2023 will be able to deduct 15 percent of the total purchase value, including expenses and taxes. They can also exclude any public subsidies they have received to aid the purchase with a maximum base of €20,000.

They can also deduct 15 percent up to a maximum base of €4,000 for the installation of a charging point.

Maternity deduction

Previously, only working mothers could benefit from a deduction (€1,200 per year for each child under the age of three) when making their tax return.

Now, even if the mother was not working but collecting unemployment benefits at the time of the birth, or if she subsequently paid social security contributions for 30 days or more, she will be able to benefit from this deduction and even apply for an advance payment of €100 per month.

READ MORE: The tax deductions you get in Spain for having a child

Capital gains increases

The tax rate on capital gains income has been raised by a percentage point to 27 percent for income over €200,000.

For capital gains over €300,000, it’s been raised to 28 percent.

READ ALSO: Spain’s plusvalía tax on property sales: What you need to know

Startup companies

From 2023 onwards, deductions for new and startup companies in Spain have improved. Taxpayers may deduct from their tax liability up to 50 percent of the amounts paid for shares or holdings in new or recently created companies, the maximum deduction base being €100,000 per year.

READ ALSO: Which startups succeed in Spain (and which ones fail)?

Our journalists at The Local are not tax experts. This article is intended to be informative, but you should always seek the advice of a tax or legal expert before making decisions.

READ ALSO:

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

What are the fines if you make mistakes on your Spanish tax return?

Filling out your Spanish income tax return can be daunting and mistakes can be made, so what happens if you submit your form with an error? Will you always have to pay a fine and how much will it be? Is there are a way of correcting the mistake in time?

Published: 20 May 2024 14:09 CEST
What are the fines if you make mistakes on your Spanish tax return?

It’s easy to make a small mistake on your yearly income tax return in Spain, known as la declaración de renta. This is because there a so many questions and boxes to fill. The most important thing is to look over everything as carefully as you can.

If you have any doubts about anything, it’s best to contact the Agencia Tributaria directly by phone, in person or on the web or to contact a tax professional and ask them to help you.

READ ALSO: How to complete Spain’s Declaración de la Renta tax return in 2024

Even with double-checking though and being thorough, small mistakes may slip through. So what can you do?

Q: I realised after I submitted my tax return that it contained an error, what can I do?

A: It’s important to note that there are usually fines for any errors made on your return. These amounts can vary depending on the size of the mistake. Whether you omitted information on purpose or it was accidental, they could still possibly fine you.

If you have already submitted your return and realise later that you made a mistake, it’s important to rectify it as soon as possible and submit a second declaration voluntarily within the allotted time frame to do this, before the Treasury finds out.

Tax experts claim that the authorities will then take into account your income, circumstances and deductions on your last declaration to see if and how much you will be fined.

READ ALSO: 11 mistakes to avoid when filing your Spanish tax return

Q: Is there a way to modify a declaration that has already been submitted?

A: Yes, the Treasury explains two ways to do this on their website

If the error affects the taxpayer – either because they have to pay the Treasury more or less than what they should, they can request the modification of the error on the declaration that’s already submitted . This can be done online on the Agencia Tributaria website, as long as Hacienda hasn’t carried out the fiscal settlement yet.

If the error affects Spain’s Hacienda treasure , the taxpayer can submit a complementary declaration , something that can also be done online under ‘Modificar declaración presentada‘.

You will need to either have a digital certificate or Cl@ve details to do all this online.

READ ALSO: 

Hacienda has announced that in this campaign it will promote communication with taxpayers who may have had errors so that they can solve them.

Q: What are the fines if I don’t correct the mistakes on my Spanish tax declaration?

A: How much you get fine for making a mistake on la declaración de la renta can depend on numerous factors, including the severity of the error, whether it’s your or them who notify the mistake and how long passes before you pay. Generally speaking, for every month that you don’t pay the money back, the amount you owe will go up.

If the mistake is linked to minor tax fraud, in the sense that you have changed something and you have not specified it, Hacienda can fine you €100. Incomplete data or other mistakes can also lead to penalties of €150.

Even if you realise that Spain’s tax agency owes you money but you inform them after the tax deadline, they will pay you what’s owed but fine you €100. If it is the Treasury that realizes the error before you, the penalty goes up to €200.

If you have any erroneous deductions that don’t correspond to you, the Treasury considers this to be a serious infraction and the fine will be 15 percent of the amount you receive.

If fake invoices or supporting documents are used so that the declaration works out favourable to you and it’s more than €3,000, the fine is between 50 and 100 percent of the amount.

With more serious cases of fraud on your declaration, the fine can be up to 150 percent of the amount. When fraud is in the millions, the fine can be €30,000 and in very serious cases the amount rises to more than €300,000.

READ ALSO: What are the penalties and prison sentences for tax evasion in Spain?

Q: Will I always get a fine if I make a mistake?

A recent ruling by the Superior Court of Justice of Galicia has found that people have the “right to make a mistake” when filing their income tax return. This could set a new precedent across the country, meaning that those who make small mistakes may no longer be fined.

During the case, the accused’s lawyer, Nadia Vasallo, assured the court that he “had no intention of deceiving the Treasury,” but rather that “a tax advisor simply advised him on a complex operation.”

Most appeals are won by taxpayers who’ve been fined are won by clients, but unfortunately the bureaucracy and cost involved mean it’s not necessarily worth fighting it. 

SHOW COMMENTS