Do I have to file my taxes in Spain?

“Do I have to file my taxes in Spain?” This is a question we often receive, and while it may seem straightforward to answer, it can sometimes be more complex. Let’s uncover why.

What are taxes used for in Spain?

Taxes paid in Spain are used to finance public services and expenditures of the Public Administrations, such as education, healthcare, justice, environmental care, nature protection and the maintenance of public goods and services. Taxes are a way to contribute to society and ensure the well-being of all citizens.

Do you have to pay tax in Spain if you don’t work?

In general you have to file taxes in Spain no matter if you work or not. Let’s go through the different possible scenarios:

• Anyone who owns a property in Spain needs to register this information with the Spanish authorities and pay the appropriate taxes, whether they are a resident in Spain or not.

• As well as when you have capital gains, imputed real estate income, income from Treasury Bills, official subsidies or public aid, when receiving compensatory pensions from the spouse or non-exempt maintenance payments.

• With effect from 1 January 2023, all individuals who at any time during the tax period have been registered as self-employed, in the self-employed regime or as seafarers, regardless of the amount of income they receive, are obliged to file a tax return. In other words, in case that you have been in one of these situations, even if it was only for a few days, you have to file a tax return in Spain.

How often do I have to pay taxes in Spain?

Paying taxes in Spain is a fiscal obligation, although it also depends on the income each person receives each year. In general terms, taxes in Spain are paid through a declaration, commonly known as the Income Tax Return. This is done in the second quarter of each year and reflects the income of the previous year. On the other hand, the IRPF is paid throughout the calendar year in the form of payroll withholdings for those who receive a salary or through quarterly declarations for self-employed workers (we are not specialized in the latter case).

Consequences of not paying taxes in Spain

The main consequence of not paying taxes in Spain results in fines for unpaid taxes. These can be in the form of surcharges and interests or as penalties.

If we file a declaration late that we have to pay, but we realize that we missed the deadline and try to fix it as soon as possible, we will face surcharges or interests.

Up to three months late: 5% surcharge. Between three and six months: 10% surcharge. Between six and twelve months: 15% surcharge. More than a year from the deadline: 20% surcharge plus interests.

If it is the Tax Agency that demands the money from us, in addition to paying the amount of the declaration and the late payment interest, we must pay a penalty, which will vary depending on whether the infraction is mild, serious, or very serious.

To avoid problems, always keep in mind the deadlines for paying taxes in Spain. Consult us about your taxes.

In this section of the Tax Agency’s website, you can check the dates to stay up to date and avoid surcharges and late payment interests in the payment of taxes in Spain.

When do I not have to pay taxes in Spain?

Taxpayers who have earned incomes below 22,000 euros gross annually from a single payer are usually exempt from taxation. That is, they can declare if they wish, but they are not obligated to (in most cases, the result of their declaration will be negative, so they will get an amount refunded, and they will receive part of what they advanced to the Tax Agency via IRPF withholdings).

However, there are exceptions to this general rule, starting with workers with more than one payer.

In general, it is always interesting to file taxes in case one day you need to request your tax residence certificate to avoid double taxation in your other country.

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If you need more information and want to send a query about the taxes you should submit, please contact us and we will answer you in 24 hours.