The tax agency (Agencia Tributaria) and the income tax return in Spain

For foreign individuals the NIE is also the tax identification number (NIF), which you use in every tax transaction.

• You are considered a tax resident of Spain if you stay more than 183 days in the calendar year or if your centre of economic interests is there, and then you are subject to income tax on your worldwide income.
• Non-residents are subject to tax on their income from a Spanish source (form 210) at different rates.
• No one is exempt from responsibility because of ignorance of the rules, so check your status early.
• And some qualified foreign workers may benefit from a special tax regime for arrivals (régimen de impatriados) under precise conditions, so ask a reliable tax adviser.

The employer withholds monthly part of your salary as a payment on account of income tax (retención de IRPF) according to your income, family situation and number of children, and sends it to the tax agency.

• It appears on the payslip (nómina) alongside your social security contribution.
• Progressive brackets are applied to income, and differ slightly by autonomous community.
• The actual withholding may be more or less than the final tax, and the difference is settled in the annual return.
• You can tell the employer about your family situation (modelo 145) so that he adjusts the withholding.
• Read your payslip and check the percentage, and ask payroll about anything unclear.

The return (modelo 100) must be filed by those whose income exceeds a certain limit (about 22 thousand euros from a single employer, and much less with more than one payer or income from capital or rent), and by those entitled to a refund or deductions.

• Returns are usually filed from April to the end of June for the previous year, via the tax agency's site with Cl@ve or the digital certificate or by phone or appointment.
• The agency sends you a borrador, that is a draft pre-filled with the employer's and bank's data, and you review it, add what is missing and confirm it. The calculation may lead to a refund or payment (deducted from your account or paid in instalments).
• Do not ignore your date, since delay means fines and interest.

Tax has deductions according to your situation: the personal and family minimum (mínimo personal y familiar) depending on age, children and disability, work expenses deduction (gastos deducibles) in a fixed amount, deduction for contributions to pension plans, deductions for some spending such as rent for housing in certain areas and home purchase before 2013, donations to associations, the maternity deduction for children in nursery (deducción por maternidad), and regional deductions that differ by your region.

• Keep invoices and receipts for several years.
• For low wages you may not pay tax at all.
• If you have special costs ask an adviser.
• And the official Renta Web service exists for the return and provides phone help and appointments at the agency's offices.

Value-added tax (IVA) is included in prices at 21 per cent for most, 10 per cent for food and transport and 4 per cent for essentials (bread and milk).

• Other taxes: property tax (IBI) and vehicle tax (IVTM) on the owner, waste charge, and purchase and inheritance tax in the regions.
• If you discover a mistake in your return submit an amending return quickly, since voluntary correction is better than a fine.
• If the agency sends you a notice (requerimiento) reply within the deadline.
• To object to an assessment submit a recurso de reposición within one month.
• The tax office provides free help, and there are tax advisers (gestorías) at reasonable cost, and some associations help migrants.
• Beware of fake text messages that impersonate the agency.

When is the tax return season?