The deadline for filing the Spanish return this year will be from April 1 to June 30. The coronavirus does not alter the initial calendar of the AEAT to liquidate the Personal Income Tax and Wealth Tax.
One of the novelties this year is that the identification of the taxpayer’s tax address is simplified. It will no longer appear as before on the first page of the draft, but will appear in a separate section from the rest of the return, in which the data can be updated at any time.
Filling in real estate capital returns and economic activities (self-employed) are also simplified. All the information related to the properties owned by the taxpayer, whether owner or beneficial owner, has been consolidated in a single section.
To facilitate the declaration of the rents of real estate that have been rented, the draft breaks down the concepts necessary to calculate the net return on capital, such as deductible expenses or amortization.
In any case, you must declare IRPF (Modelo 100) if during the year 2019, you had your habitual residence in Spain, that is, if you have remained in Spanish territory for a minimum of 183 days, or when your main nucleus or base of business activities have been in Spain and who are in any of the following cases:
- Taxpayers who have obtained full income from work for an amount greater than € 22,000 from the same payer. Also, those who have received more than € 14,000 per year from various payers (in 2018 was € 12,643), if the sum of the amounts from the second and other payers, in order of amount, exceeds the figure of € 1,500 per year.
- Likewise, the declaration must be filed by the spouse’s compensatory pensions or non-exempt alimony annuities, and those whose payer is not obliged to withhold or when income subject to a fixed rate of withholding is received.
- With regard to movable capital, those who obtain returns and capital gains subject to withholding tax in excess of € 1,600 gross per year.
- It is also required to file when “imputed real estate income” is received (= if you own a second house and it is not rented) , yields from Treasury Bills, subsidies for the acquisition of officially protected or appraised price housing, as well as other capital gains derived from public aid . In all these cases, it will be required to pay taxes for the earnings over € 1,000 gross per year.
The same limit is established for those taxpayers who obtain income from work, capital or professional activities, as well as capital gains. Those who have registered losses in their assets whose amount is equal to or greater than € 500 per year must also declare.
Lastly, the good news for taxpayers who obtain net income from work in 2019 of less than € 16,825, provided that they do not have income, excluding exempt income, other than from work greater than 6,500 euros, will reduce the net income from work of € 5,565 per year.
Wealth Tax is filed in the same period as the Personal Income Tax with Form 714.
All people resident in Spain and non-residents who are owners of goods or rights located in the Spanish territory are required to file it. The Wealth Tax is a declaration of assets, not income. What is taxed is what you have, not what you have earned over the year.
Taxpayers who have assets and rights for a value greater than € 2,000,000 are obliged to present Wealth Tax. There is an exempt minimum of € 700,000 (some communities establish a lower minimum: Aragon (€ 400,000), Catalonia (€ 500,000), Extremadura (€ 500,000) and the Valencian Community (€ 600,000), and it is also exempt the first € 300,000 of the value of the habitual residence.
In general, the state rate is applied, consisting of 8 sections ranging from 0.2 to 2.5, with the exception of Andalusia, Asturias, Cantabria, Catalonia, the Balearic Islands, Extremadura, Galicia, Murcia and the Valencian Community, which have their own assessment scale. In the Community of Madrid, the Wealth Tax is 100% Bonus.