Taxes in Spain – 2020 INCOME TAX DECLARATION
Taxes in Spain
Here an important fact about Taxes Spain: Before June 2021, tax residents in Spain should submit the Income Tax declaration. These are some of the points to take into account, specially if this is your first year as tax resident in Spain:
- You have to check if you have to prepare this declaration. In some cases you have to submit this declaration necessarily and in other cases that you are not obliged, it is convenient to prepare it in order to get a refund from the tax office.
- You can prepare the declaration via Internet but we strongly recommend to prepare it with a tax advisor due to the complex fiscal legislation, specially if this is your first year in Spain.
- You have to check if you have to declare incomes from other countries as the Spanish income tax includes all the incomes all over the world, with some exceptions. The incomes to declare include rentals, salaries, dividends, capital gains, etc.
- In case you have paid taxes in other countries, you can deduct a part or the total amount as a deduction,
- You have to check all the possible deductions in your declaration (due to the family, pension plans, rentals, etc.)
- In some cases, when one of the members of a marriage has almost no incomes it can be better to submit a joint declaration (“declaración conjunta”) instead of individual declaration.
- Remember to have to check if you should prepare the Wealth Tax (“Impuesto sobre el Patrimonio”).
Quite often, the preparation of the income tax can reveal the existence of assets abroad (real estate propertis¡es, bank accounts, investment funds, shares …) that should have been declared previously in form 720. Remember the high penalties in case you don´t submit this form 720 on time.
You can contact us in case that you want fiscal advise to prepare your Income Tax declaration. We can have a personal meeting at our offices in Barcelona or have a Zoom meeting to prepare your declaration with jose@asesoriagarcialopez.es