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| Residents Tax |
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Personal Income Tax - FORM 100 |
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This is a tax of a personal and direct nature which, according to the principles of equality, generality and progressiveness, taxes the income of physical persons who have their residence in Spanish territory, according to their personal and family circumstances. |
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This tax is payable between 01 May and 30 June each year, and relates to the previous year's income. For example, in June 2007 we file the return relating to our 2006 income. |
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Personal Income Tax only taxes the taxpayer's disposable income, which is the result of taking away the personal and family allowance from the total income obtained. |
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The amount and nature of the income received during the year determine whether a person is obliged or not to file a personal income tax return. |
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Minimum amounts above which one is obliged to file a return |
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| Earnings: |
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Generally speaking, the threshold is €22,000 gross per year, when the earnings come from a single payer. This threshold also applies if there are several payers and the sum of the amounts earned by the second and further ones does not exceed overall €1,500 gross per year. |
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The threshold is €10,000 gross per year, if the earnings come from more than one payer and the sums earned by the second and further ones, in order of amount, exceed €1,500 gross per year. |
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Up until 31 December 2006, these figures were €8,000 and €1,000 respectively; with the new law they've gone up to €10,000 and €1,500. This is a change to favour lower incomes. |
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An exemption from paying Personal Income Tax will also be applied for those workers who move to countries with double taxation agreements. |
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However, a return must be submitted by those taxpayers who wish to benefit from the application of the following deductions or reductions: |
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Deduction for investment in usual home.
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Deduction for business savings account.
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Deduction for international double taxation.
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Reductions in the gross tax base for contributions to pension plans, to social welfare mutual benefit societies, to insured benefit plans or to protected trusts of disabled persons.
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What's meant by “INCOME”? |
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Earnings (wages, salaries, pensions etc).
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Yields from liquid assets (share dividends, interest on accounts).
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Yields from property (letting of properties).
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Yield from financial activities (businesspersons, professionals).
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Capital gains and losses (those deriving from the transfer of assets, certain prizes etc).
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Income taxes laid down by law (ones deriving from the ownership of certain properties different from the usual home and not let).
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