The 2024 Spanish Income Tax Return filing period opens on 2nd April to 30th June. As every year, the Spanish Tax Agency has introduced some changes to the process. This time, two key updates could help taxpayers avoid penalties and simplify the correction of errors: fields 669 and 701.
Below, we outline the most important changes and what you need to know to avoid issues with the Spanish tax authorities.
Instant payment via Bizum and bank card
Until now, taxpayers in Spain could only pay their tax liability via direct debit or bank transfer. However, with the new 2024 Income Tax Return campaign, it will now be possible to make instant payments using Bizum or a bank card, streamlining the process.
This change is particularly beneficial for those who need to settle their tax bill immediately to avoid late payment charges or interest. However, the system remains asymmetric: if your tax return results in a refund, the Tax Agency will still follow its usual review timeline before processing the payment.
Error correction without the need for an amended return
One of the major updates this year is the introduction of fields 669 and 701, designed to facilitate the rectification of errors without having to submit an amended tax return.
- Box 669: Allows taxpayers to indicate discrepancies with the Spanish Tax Agency’s assessment regarding the calculation of taxable income. Previously, any errors required submitting an amended return, which could lead to delays and potential penalties.
- Box 701: Can be used to claim refunds for undue or excessive payments. This includes tax refunds that have not been correctly processed or adjustments for overpayments.
This measure aims to improve communication between taxpayers and the Spanish Tax Agency, reducing the risk of penalties for minor errors.
Who is required to file a tax return in Spain?
As in previous years, certain groups are obligated to submit a tax return regardless of their income level:
- Self-employed workers: All freelancers in Spain must file a tax return, regardless of their earnings.
- Recipients of the Minimum Vital Income (IMV): This social benefit requires all recipients to file an annual return.
- Unemployed individuals: Those who have received unemployment benefits must comply with this obligation.
- Individuals earning over €22,000 annually from a single employer, or over €15,000 if receiving income from multiple employers.
Key tax updates for businesses in Spain?
Companies should also be aware of certain fiscal changes in the Income Tax Return, which could impact their accounting and tax obligations:
- New tax deductions for digitalisation and sustainability: Additional tax incentives have been introduced for businesses investing in digital transformation and energy efficiency.
- Corporate tax adjustments: Changes have been made to the taxable base of Corporate Tax, which may affect certain industries.
- Withholding tax and advance payments: Businesses making payments to suppliers or collaborators must ensure compliance with the new withholding tax rules for 2024.
How to avoid tax penalties in Spain?
To prevent issues with the Spanish Tax Agency and avoid fines, consider the following key points:
- Carefully review your tax data before submitting: The introduction of fields 669 and 701 makes error correction easier, but it is still essential to check all details thoroughly before filing.
- Meet the deadlines: The filing period runs from 2nd April to 30th June, so it’s advisable not to leave it until the last minute to avoid system delays.
- Take advantage of new payment options: If your tax return results in an amount payable, you can now settle it instantly via Bizum or bank card.
- Seek advice from a tax consultant: If you are self-employed or have multiple sources of income, consulting a tax expert can help optimise your return and avoid mistakes.
The Income Tax Return introduces changes that simplify the process, allowing for instant payments and error corrections without the need for an amended return. Additionally, new tax deductions are available for those investing in property improvements or working as freelancers.
At LEIALTA, we help foreign professionals and businesses in Spain manage their tax filings efficiently and without complications. If you have any doubts about how these updates may affect you, our team of experts is ready to assist you.
