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Do you have to file a Spanish tax return?
- €22,000 income in the year from employment and pensions, including those from overseas.
- This limit falls to €14,000 under the following circumstances:
The income has not been taxed at source (Spain).
The income comes from more than one source (e.g. two jobs or two pensions, or one of each). If the other sources add up to €1,500 or less you can still use the €22,000 exemption.
However, a return becomes obligatory in certain circumstances no matter how low your earnings are, such as:
- if you have a claim for double taxation
- if you are due a refund
- if you have made pension contributions
- if you are claiming deductions for cost of buying your main residence
- if you have capital gains or income above certain limits
Types of income
- Income from work (paid employment, pensions).
- Investment income (interest, dividends).
- Income from real estate (rentals, second homes).
- Income from economic activities.
- Capital gains (lottery, gambling winnings, sales of assets such as homes, stocks, etc.).
Personal Allowance 2020
- Minimum: €5.550
- Older than 65 years: €6.700
- Older than 75 years: €8.100
Taxable Amount 2020
- Up to 12.450: 19%
- Remaining 7.750: 24%
- Remaining 15.000: 30%
- Remaining 24.800: 37%
- From 60.000 onwards: 45%
Savings Income includes income from interest, dividends, life insurance, purchased annuities (not annuities purchased with pension funds) and capital gains on the sale of transfer of assets (not property).
Taxable Savings Amount 2020
- Up to 6.000: 19%
- 6.000 – 50.000: 21%
- Over 50.000: 23%
Most Important Deductions
- Deduction of 15% on the total of the purchase of your main residence, acquired before 01.01.2013.
- Deduction of 10.05% on the amount paid in rentals (contracts before 1 January 2015, as long as it was declared in 2014 income tax).
- Additionally, the Comunidad Valenciana has a further deduction of 15% on the amount paid in rentals, with a limit of €459, when the tenancy contract is registered with the Comunidad Valenciana.
- Double Taxation Deduction.