Deadlines of taxes and start of income tax campaign

Despite the Covid-19 crisis and the measures approved by the Government of Spain, the deadlines for submitting state taxes for the 1st quarter of 2020 have not been modified.

Despite the difficulties, in Imont Legal Services we will continue advising all clients who need it and presenting taxes within the established deadlines so that clients do not have any problem with the Spanish Tax Agency. Due to the restrictions on mobility for the Covid-19 crisis and for everyone’s safety, we request that all communications and documentation be sent to us via email to david@imontlegal.com

For clients who have signed our tax representation contract with direct debit of our fees, we would like to let you know that from Imont Legal Services the collection of receipts will be stopped until the state of alarm ends and the service can be provided as usual.

Among the measures approved by the Government in Spain is the possibility of deferring the payment of taxes not exceeding € 30,000 for a maximum of 6 months and the first 3 months being exempt from interest payments. Each client must indicate whether they want to pay on April 20 or decide to postpone payment.

RENTAL TAX 1ST QUARTER 2020 (Deadline for submission: April 1 to 20)

All non-residents who have rented their properties in the first quarter continue to have the obligation to file the tax (form 210) if they have obtained profits.

For the tax filing we request a list of days rented each month, income and details of all expenses.

Deductible expenses are:

  • Electricity, water, gas, internet, TV supplies (to be prorated between the rented days)
  • Mortgage loan interest (to be prorated between the days rented)
  • Home insurance (to be prorated between the rented days)
  • Real estate tax (IBI, SUMA) (to be prorated between the rented days)
  • Owners’ community fees (to be prorated between the rented days)
  • Maintenance or repairs (100% deductible)
  • Cleaning of the house between rentals (100% deductible)
  • Intermediaries commissions (100% deductible)
  • Consulting and fiscal fees (100% deductible)
  • Any other expense you make on the house, include it for us to review.

Please keep in mind that the expenses you can deduct are from which you have invoices (not a supermarket ticket or something similar) and that almost all expenses have to be prorated between the days the property is rented.

2019 INCOME TAX CAMPAIGN FOR RESIDENTS HAS BEGUN

On April the 1st, the 2019 Income Tax campaign begins and ends on June 30.

Remember that the fiscal year in Spain runs from January the 1st to December the 31st, so be sure to bring the information for those months of 2019.

Being a resident in Spain means that you must declare IN SPAIN all income earned from property and assets worldwide, regardless of whether you are also paying taxes abroad.

DOCUMENTATION TO PROVIDE:

  1. Certificate of earned income, with detailed information of retentions and payments to Social Security (including P60, pensions, benefits for unemployment, etc.) – P60’s of tax year endings April 2019 AND 2020
  2. If you receive a public pension where you are informed each year of the weekly increase, please bring the letter received in 2018 AND 2019.
  3. Certificates of earnings from capital assets both in Spain and your country (interests of bank accounts, fixed deposit accounts, dividends, income from insurances….). Just the annual certificate sent by the banks each year. Please, do not bring bank statements for the whole year.
  4. Fiscal information about mortgages on main residence property. This will be included in certificates mentioned in point 3.
  5. Information on income coming from property rental and expenses necessary to obtain them (deductible).
  6. Local tax bill for all the properties that you own.
  7. Information about changes in personal assets during last year (buying or selling of properties, land, shares, investment funds, etc.)
  8. Any disability legally recognized by a Spanish authority.
  9. Information about pension plans.
  10. Information about donations.
  11. Information about professional or business activities during last year.
  12. Family details: marriage, children, grandparents living with you, physical handicaps, etc.
  13. Spanish bank account number where you would like the tax amounts to be charged or reimbursed.
  14. Any other information that you consider important.