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Am I Required to Make the 2020 Income Statement?

Law and Tax ChangesTax Agency (Hacienda)

income statement

In Selfemployed Spain, we often receive the question: Am I obliged to make the 2020 income statement? In today’s article, we will see the cases in which you are NOT obliged to make the annual statement.

As indicated by the Tax Agency on its website, all taxpayers resident in Spain during the 2020 financial year are obliged to declare. The following situations are the exceptions to this rule:

1. Individuals with a single-payer

Individuals who have received income from work below 22,000 euros from a single-payer during 2020 are not required to declare. They can do it if they wanted and in most of these cases, the result is to return.

2. Individuals with more than one payer

The presentation of the income statement is not necessary when there are two or more payers and income from work below 22,000 euros when the sum of the amounts received from the second and subsequent payers (in order of amount) do not exceed as a whole 1,500 euros per year.

3. Individuals who receive passive benefits 

You won’t have to make the declaration when the income you receive consists of passive benefits. These are, for example, Social Security pensions, benefits from pension plans, group insurance, etc. 

Of course, the determination of the type of withholding should be carried out under the special procedure established by regulation. You can request this procedure through form 146.

4. The limit becomes 14,000 euros gross per year

The limit is 14,000 euros per year, instead of the initial 22,000 euros, in the following cases:

– When they come from more than one payer, as long as the sums received from the second and other payers exceed the amount of 1,500 euros per year.

– If you received the income for compensatory pensions of the spouse or annuities for food (unless the latter come from the parents by court decision).

– When the income payer is not obliged to withhold.

– If the full income from work you obtained is subject to a fixed rate of withholding.

5. Other circumstances

If you as a taxpayer are in any of these situations, you won’t have to present the income statement:

– Taxpayers who have obtained full income from movable capital and capital gains subject to withholding or payment on account, as long as they do not exceed the amount of 1,600 euros per year.

– Those taxpayers who have obtained imputed real estate income, yields from Treasury Bills or subsidies for the acquisition of officially protected homes or with an appraised price, with the joint limit of 1,000 euros per year.

– Those taxpayers who have exclusively obtained full income from work, capital (furniture or real estate) or economic activities, or capital gains, when the sum of all of them does not exceed 1,000 euros per year.

– Those who have had, exclusively, capital losses of less than 500 euros.

If you are in any of these circumstances in which you are exempt from submitting the Annual Tax Return (Renta), we advise you to make it if the result is to return, as this way you can benefit from the deductions.


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