Tax return window opens

The annual Tax Return window opens today for an estimated 24 million people across Spain, including approximately one million in the Canary Islands.

Although a sizeable number are exempt due to low income, certain groups are obliged to submit a tax return for 2024 regardless of their income level. These groups include self-employed workers (“autónomos”, all of whom need to file a tax return irrespective of earnings), recipients of the so-called Minimum Vital Income (IMV) social benefit, and anyone who received unemployment benefit in 2024. As a general rule, individuals earning over €22,000 annually from a single employer (or over €15,000 if receiving income from multiple employers) must complete and submit the cumbersome tax return document.

Among the novelties for this year’s annual exercise is the introduction of box 669 on the all-important form to facilitate the rectification of errors without having to engage with the laborious process of filing an amended tax return. Box 669 is seen as a positive development as it allows taxpayers to indicate discrepancies with the Spanish Tax Agency’s assessment of the calculation of their taxable income. In the past, any errors required an amended return to be submitted, which could lead to delays and potential penalties. The introduction of the new box is one of several measures aimed at improving communication between taxpayers and the Spanish Tax Agency, reducing the risk of penalties for minor errors.

Another well-received change compared to previous years relates to the method pf payment for any tax liability due. Until now, outstanding amounts had to be paid via direct debit or bank transfer but as of this year it will be possible to make instant payments using a bank card or the popular Bizum payment method. This change is particularly beneficial for those wishing to settle their tax bill quickly to avoid late payment charges or interest on the sum owed.

Further changes for this year include the obligation to declare sales of second-hand items via popular platforms such as Wallapop, where more than 30 transactions have been carried out or more than 2000 euros earned from the sales. In the run-up to the start of the tax return period, the authorities also issued multiple warnings to people to declare all income earned from renting property, whether long-term lets or short-term ones on Airbnb etc.

As usual, the window for filing returns lasts for approximately three months, with this year’s deadline falling on 30 June. Coinciding with the opening of the filing period today, tax advisors and accountants have reiterated their standard warnings not to leave the cumbersome task until the last minute.