Main reasons to have a tax audit of your income tax declaration in spain
When you or your tax advisor prepare your income tax return, there are some mistakes that cause almost automatically a tax audit. Please read the following lines in order to avoid it.
1. Differences between the declarated data and those that the tax office has. The first step to prepare your tax declaration should be to check the fiscal data that the tax office has and compare with the ones that you have; you can download them at the website of the Agencia Tributaria.
2. Mistakes with the deductions (rentals, mortgage): for the fiscal year 2021 you can apply these deductions only in some cases, according to your incomes and the data of the rental contract or the mortgage.
3. Incomes not declared: you should declared the incomes that you have all over the world. According to the Spanish laws, you should include the incomes that you could have in other countries (rentals, dividends, payslips, etc. In Spain the Income tax is paid according to your universal incomes. Remember that the Spanish tax office can receive tax information from other countries and can have some information of your assets abroad through the form 720. Even if the real estate properties are not rented you should declare an income.
4. Deductions to avoid double taxation declared wrongly: when you include your incomes abroad in your tax declaration you can include totally or partially the withholding tax paid abroad. You should check the amounts to deduct according to the Agreement to avoid double taxation between Spain and the country where the incomes come from.
5. Mistakes with the expenses deducted in your incomes for rentals. The Spanish tax office checks often these expenses: you should deduct only the expenses when the real estate property is rented and calculate correctly the depreciation.
6. Differences between your declared incomes and your bank incomes. As the tax office has yearly information of the bank incomes, if there are important differences with the declared incomes, the tax office could check the origin of these differences in order to check if they should be declared as incomes in the income tax declaration.
As you can see, the main point is to avoid a tax audit because of any of these differences that can be automatically checked by the tax office.
From AGL we can help you to avoid all these possible mistakes.
