Submit your Spanish Tax Return (RENTA 2021)
- What is the RENTA?
The IRPF (Impuesto sobre la Renta de Personas Físicas) is the Spanish nearest equivalent to personal income tax. Every year, Spanish residents must declare their annual income from the previous calendar year from the 1st of April to the 30th of June – this is called the RENTA.
- Am I a Spanish resident?
Individuals become officially resident in Spain for tax purposes if they live more than 183 days of the calendar year on Spanish territory or if the principal centre of activity or physical base of their economic interests is in Spain.
For more detailed information on how tax residency is established or if you are unsure about whether you are a Spanish resident, read our article How Do I Know if I’m a Spanish Resident or Non-resident for Tax Purposes?
- Must I submit the RENTA?
You are only exempt from declaring if your income falls below these established thresholds:
- You earn a sole income of €22,000 as an employee already subject to employer deductions.
- You can benefit from a reduced limit if your income is earned from more than one employer and is under €12,000.
- Your bank interest and other investment income is under €1,600.
- Your rental income is under €1,000.
- You receive income from employment, investment capital, economic activities or capital gains up to a combined limit of €1,000 annually or you have capital losses below €500.
However, please note that it is compulsory to submit your tax return in the first year of you become a tax resident in Spain. Therefore, if you became a Spanish tax resident in 2021, you must file the RENTA 2021 income tax return between the 1st of April and the 30th June 2022 regardless of your income level.
- What earnings do I have to declare?
As a Spanish resident you are taxed on your worldwide income. Therefore, you must declare all earnings, regardless of where they come from. This includes pensions from your home country (except for some civil service pensions). These rules apply even if your income is not paid into a Spanish bank account. A deduction for double taxation is applicable to all earnings that are taxed abroad thanks to double taxation treaties that Spain holds with other countries. As a result, you will not be taxed twice on the same income.
- Submit your Spanish Income Tax Return for 2021 (RENTA 2021)
Don’t forget to submit your tax return for the 2021 tax year during April and June 2022 – the deadline to present submit your RENTA (2021 tax return) is the 30th of June 2022. If you would like advice about your tax situation or you would like us to assist you with your Spanish income tax return, please do not hesitate to contact us.