Who is obliged to make a tax return?
All individuals resident in Spain are obliged to make a tax return.
- Personal earned income equal to or less than 22,000 euros a year:
- Provided it comes from a single payer.
- When there are several payers, provided the sum of the second and subsequent payers in order of amount does not exceed the sum of 1,500 euros.
- When the only earned income consist of passive benefits (social security or civil service pensions, benefits from pensions plans, collective insurance, mutual policies for social benefits, company social provision plans, insured provision plans and dependence insurance benefits) provided the applicable withholding rate has been determined in accordance with the established special regulatory procedure (at the taxpayer's request through the presentation of form 146).
- When earned income comes from more than one payer and the sum of the amounts received from the second and subsequent payers in order of quantity does not exceed the sum of 1,500 euros a year.
- When non-exempt maintenance payments or annual payments are received from a spouse.
- When the payer of the earned income is not obliged to make withholdings.
- When untaxed earned income is received subject to a fixed withholding rate.
In 2014, the following are considered to be earned income subject to a fixed withholding rate: remuneration received as administrators and members of Boards of Directors and their substitutes and other members of other representative bodies (42% withholding), as well as income deriving from giving courses, lectures and similar or deriving from the writing of literary, artistic or scientific works, provided rights to exploit them are transferred (21% withholding).
Starting from 1 January 2014, capital gains from the transfer or buy-back of shares or holdings in collective investment institutions for which it is not appropriate to determine the withholding base from the sum to be integrated into the taxable sum are excluded from the joint limit of 1,600 euros. When the withholding base has not been determined in accordance with the amount to the integrated into the taxable sum, the capital gain obtained from the transfer or buy-back of shares or holdings in collective investment institutions cannot be calculated as a capital gain subject to withholding or payment on account for the purposes of the allowances in the obligation to make a return.
However, although they are not obliged to make a return, all taxpayers entitled to receive a refund have to confirm the draft or present the tax return to obtain their refund. The above limits apply both to individual and joint taxation.
In all cases, taxpayers who receive any type of income other than the above or exceed the maximum sums indicated are obliged to make a tax return. The following people are obliged to present a tax return on the ordinary form (they cannot use the draft):
- Taxpayers carrying on economic activities (business people, professionals, arable and stock farmers, etc.).
- Those who receive investment income not subject to withholdings or payments on account.
- Those who have had capital gains not subject to withholdings or payment on account and any kind of grant classified as income from economic activities.
- Taxpayers attributed income from property that comes from more than eight properties.
- In all cases, taxpayers receiving income from property and/or income from leasing or assigning assets.
- The members, heirs, co-owners or shareholders in organisations carrying out economic activities under the income attribution system.