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Who should file a tax return?
In general, no tax return must be submitted when:
- Wage income < 22,000 euros.
- Payer withholds Spanish tax.
- Savings income < 1,600 euros.
The general rules for when you are required to file a Spanish tax return as a tax resident in Spain are rarely relevant to Scandinavians, as a deduction for interna-tional double taxation (Scandinavian tax) presupposes that a Spanish tax return has been filed.
Two types of income
In general, there are only two types of income into which all taxable income can be divided. The taxable income can only belong to one of these two types of income:
- Ordinary income, renta general.
- Savings income, renta del ahorro.
| Ordinary income | Savings income |
| Income from work | Dividends |
| Income from real estate | Interest |
| Income from moveables/rights | Capitalization operations |
| Income from business activity | Life/disability insurance |
| Accured/fictitious income | Other capital income |
| Unproven capital gain | Capital gain and loss |
Income and capital gain specifically considered ordinary income
The ordinary income also consists of income that has the character of fictitious income or which due to lack of documentation of a real business activity is not accepted as savings income.
- Income from secundary home for period without rental.
- International tax transparency (income acquired in-directly through a company structure).
- Collective investment funds in a tax haven.
- Ownership, declaration and acquisition of assets and rights that do not correspond to desclosed income and assets, for example via Form 720 on the declaration of assets outside Spain.
Personal deductions
When calculating the total taxable income, a personal allowance is given depending on the taxpayer´s personal and family situation.
| Personal deductions | Euro |
| Personal deduction < 65 years | 5,550 |
| Personal deduction > 65 years | 6,650 |
| Personal deduction > 75 years | 60900 |
| Child deduction per child | 2,400 – 4,500 |
| Disability rate 33% – 65% | 3,000 – 6,000 |
| Disability rate > 65% | 9,000 – 12,000 |
Other deductions in ordinary income
Deductions are given for contributions to pensions, social security and (families’) joint tax return.
Tax rates for ordinary income
The total tax rate consists of the national and regional tax rate.
| Tax rates ordinary income 2020 euro (national) | |||
| Income | Tax | Interval | % |
| 0 | 0 | 12,450 | 9,5 |
| 12,450 | 1,183 | 7,750 | 12.0 |
| 20,200 | 2,113 | 15,000 | 15.0 |
| 35,200 | 4,363 | 24,800 | 18.5 |
| 60,000 | 8,951 | Herefter | 22.5 |
| Tax rates ordinary income 2020 euro (Madrid) | |||
| Income | Tax | Interval | % |
| 0 | 0 | 12,450 | 9.0 |
| 12,450 | 1,121 | 5,257 | 11.2 |
| 17,707 | 1,709 | 15,300 | 13.3 |
| 33,007 | 3,744 | 20,400 | 17.9 |
| 53,407 | 7,396 | Herefter | 21.0 |
| Tax rates ordinary income 2020 euro (Andalusien) | |||
| Income | Tax | Interval | % |
| 0 | 0 | 12,450 | 9.5 |
| 12,450 | 1,183 | 7,750 | 12,0 |
| 20,200 | 2,113 | 7,800 | 15.0 |
| 28,000 | 3,283 | 7,200 | 15.9 |
| 35,200 | 4,428 | 14,800 | 18.8 |
| 50,000 | 7,210 | 10,000 | 19.1 |
| 60,000 | 9,120 | 60,000 | 23.1 |
| 120,000 | 22,980 | Herefter | 24.3 |
Documentation
Spain receives information on Scandinavian in-come, and if it does not match the amounts that have been submitted, you will receive a request for submission of documentation.
In Spain, the language is Spanish, and there-fore only documentation translated into Spa-nish can be expected to be accepted.
Special deductions
The special deductions are given in the calculated tax and they are therefore particularly attractive.
- Business angel: Deduction of 30% of an investment of up to 60,000 euros in a start-up. The investor must have less than 40% of the shares to be retained for a least 3 years and a max. of 12 years.
- International double taxation: A deduction is given for paid foreign tax corresponding to what should have been paid in Spanish tax on the income with the effective average Spanish tax rate.
The autonomous regions can set their own special deductions, and there are a large number of these.
Tax rates for savings income
| Skattesatser opsparingsindkomst 2020 euro (National + Andalusien) | |||
| Incom | Tax | Interval | % |
| 0 | 0 | 6,000 | 19.0 |
| 6,000 | 1,140 | 44,000 | 21.0 |
| 50,000 | 10,380 | Herefter | 23.0 |
Example of calculation of tax on savings income:
Of a taxable savings income of 40,000 euros, the income tax amounts to 1,140 euros of the first 6,000 euros, and 21% of the following 34,000 euros.
The tables of ordinary income are read in the same way.
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