Spanish Income Tax Return modelo 100 IRPF for residents in Spain and Wealth Tax (Modelo 714) for residents and owners of good or right located in Spain.

All Spanish fiscal residents must file Modelo 100 IRPF from April 7 to June 30, as long as his annual earned income is bigger than 22.000€ or 14.000€ if it comes from more than two payers, when the payer of the earned income is obliged to withhold; pensions and other kind of income do not apply. So, this exemption only applies to earned income from Spanish payers.

You also must file the return if your income from movable capital is more than 1,600€; “rentas imputadas” from your real estate are more than 1,000€; income as self-employed (autonomo) is more than 1,000€

Those who receive the minimum vital income, and the members of the family are obliged to file the annual tax return, IRPF.

If you ended paying for your tax return you can do it in two parts: the first, 60% of its amount, at the time of filing the return or id elect to direct debit from your account, on June 30th, and the second, the remaining 40%, on November 5th, 2021.

As in previous years, taxpayers may allocate 0.7 percent of their entire quota to activities of social interest by marking box [106] of the return with an “X”.

For those receiving rents from real state, the 2020 tax return has been improved in the amortization area, in which you can transfer the calculations from the previous year. Another important improvement that the AEAYt has put inplace is the Tax Return simulator Modelo 100 IRPF 2020 (simulator), that helps you to estimate your tax liability in advance.

It will be wise to check possible deductions offered by the Comunidad Autonoma, which varies from one to the other.

Wealth Tax in Spain

Another tax which depends on the Comunidad Autonoma is the Wealth Tax, which is filed in the same period as the Personal Income Tax IRPF 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 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% rewarded.


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