Are you obliged to file a return?
Learn the exemptions to the obligation to submit a tax return.
According to article 10 of Income Tax Law, every tax-resident* with incomes of any sort is obliged to file a tax return ( RENTA.)
This is certainly the case of self-employed individuals. Autonomos are obliged to submit a return as part of their administrative obligations in any case, independently if they made profit or not.
However, there are some exceptions for individuals who get their incomes by other means.
1. Workers who receives the wage from only one payer, whose annual salary is under 22,000€.
In this case, they can submit it if they wish but they are not obliged. Their tax has already been deducted from their gross wage. Should they submit it, possibly they would get a tax rebate.
2. Workers obtaining an annual wage under 22,000€ who, even having more than one payer, the amounts received from the minor payers do not exceed 1500€ per each one.
3. Workers with more than one payer who are not under the limit of 1500€ mentioned in point 2 but the total of all salaries is under 14000€.
4. Pensionists with annual pension under 14000€, in cases when the payer is not obliged to with-hold tax. This also applies to foreign pensions. That is, if your pension is over this figure, you are obliged to submit one.
5. Real Estate related profit under 1000€ or loss under 500€, when the operation was subjected to retention or withholdings. (This allowance is compatible with cases 1-4)
6. When interests and dividends do not exceed 1000€, and they are the only income.
Related:RENTA. Learn the basics.
The main reason for these exemptions is due to the fact that in most cases the Tax Agency has already received your tax via “retentions” performed by your payers, or your incomes are so small that any tax liability would be totally reduced by your personal allowances.
Any income coming from any other source that those mentioned here should be informed though small.
Do you need to submit your tax return?We can do it.
*Tax residency is mainly determined by where the tax payer has his or her main source of income ( work ) or , if this cannot be established, in which country he or she has spent more than 182 days in a calendar year. ( Other criteria may apply when none of these can be established)