By submitting a voluntary tax declaration, it is possible to receive a tax refund, which is withheld by the tax office without a tax return. Dependent employees in Spain are exempt from tax declaration if their annual income consists exclusively of income from work and is less than € 22,000.
Even if you receive income from more than one dependent activity, you will still be exempt from the tax declaration obligation if the total does not exceed €11,200.
If you are within the above income limits, you are exempt from the tax declaration obligation, as your employer already deducts the corresponding income tax from your monthly income as provisions and pays it to the tax office on your behalf. Particularly in the case of fixed-term employment contracts, partial unemployment, etc., the provisions generally exceed the final tax amount to be paid, creating a right of repayment in your favor.
However, in order to receive the possible tax refund, it is necessary to apply for and confirm a draft tax return. Since your only income is earned from work, it is usually not even necessary to make any changes and it is sufficient to confirm the draft automatically prepared by the tax office and provide your bank details.
If you have an electronic signature or have already submitted a tax return in the last year, you can complete the whole process within 5 minutes via the website of the tax office.
2 steps to complete the tax refund process
1. Application for the draft
You can apply for the draft automatically prepared by the tax office via the website of the tax office and download it directly at the same time as a PDF file. To do this, you must enter your N.I.E., your surname and the required comparative value of the last tax return (Casilla xx).
First declaration: If you have not submitted a tax return in the previous year and therefore do not have the required comparative value (Castilla xx), you can register with the electronic signature on the website of the tax office and in this way also gain access to your tax return.
If you do not have the latest tax return or the electronic signature, it is necessary to register at the local tax office.
It should be noted here that it may be more time-saving to apply for an electronic signature and be able to complete the tax return as described in the previous section.
2. Confirmation of the draft
Once you have reviewed the draft, you can confirm it in the case of positive repayment by indicating the reference value contained in the downloaded draft. To complete the confirmation process, you will be asked to enter your bank details (IBAN). Procede to confirm the draft (Confirmar borrador).
Once the process has been completed, the amount to be repaid will be transferred directly to the bank account you have specified. In order to complete the tax return even faster next year, it is highly recommended that you print out the tax return or save the downloaded PDF file securely.
If, in addition to your salary, you have other taxable income that is not automatically recorded in the tax return (e.g. rental income), you must adjust the draft accordingly before confirming it.
GMTax Consultancy will be happy to help you analyse your specific situation and submit the relevant tax returns for you. If you are interested or have specific questions on the subject, we are at your disposal by e-mail or telephone in English or Spanish languages.
