View pdf

Personal Income Tax Return for the Tax year 2023

ESCURA would like to inform you that the filing period for the 2023 Personal Income Tax Return and the Wealth Tax Return in Spain has started.

The deadline to file the returns is 1 July 2024 unless the option to pay the returns is by direct debit, in which the deadline would be 26 June 2024.

As a reminder, a tax resident in Spain shall pay taxes on worldwide income and wealth. In this newsletter, we would like to facilitate a list of documents for guidance on preparing the mentioned tax returns.

BASIC DOCUMENTS FOR THE PREPARATION OF THE RETURNS (*)

Photocopy of the DNI or NIF of the family unit members and other members entitled to a deduction, showing not only the DNI or NIF number but also its expiry date.

We would also need the following personal information:

• Marital status. In the case of marriage, the matrimonial regime.
• Members of the family unit: spouse/partner, dependent descendants, or ascendants. Specify cohabitation.
• Disability of a family unit member and, if applicable, the degree of disability.
• Adress of usual residence and ownership (1. owner 2. beneficial owner 3. Tenant 4. other).
• Autonomous Community of residence in 2023.

A bank account number in Spain of which the taxpayer is the holder for the purposes of depositing/returning the Tax Returns.

If we did not prepare the tax returns for 2022, a copy of the tax returns was filed.

INCOME

• INCOME FROM WORK:
  • Company or pension certificate of income received in cash and in kind.
  • Social security contributions, fees paid to professional associations, trade union dues and legal expenses.
  • Certificates of Teaching courses, director’s remuneration, indemnity, pension plan benefits, and company contributions to social welfare systems.
• FIXED ASSETS: Certificates from banks and savings banks of balances and interest received, as well as of securities (shares, public debt, promissory notes, the value of investment funds, the value of unlisted companies, etc.). Insurance. Dividends received from companies (listed or unlisted).
• CORPORATE TRANSACTIONS: Mergers, spin-offs, exchanges of securities, non-monetary contributions to branches of activity, and non-monetary contributions of other assets.
• Real ESTATE:
  • Public deed of sale, reference, and cadastral value of the property for 2023.
  • Certificates of the 2023 IBIS of the properties owned by the taxpayer.
  • If the property is rented, the amount of income and expenses associated with the rental of the property for 2023. As well as the tenant’s NIF and the lease contract date. Copy of the lease contract.
  • Indicate whether any of the properties owned are the habitual residence.
• BUSINESS, PROFESSIONAL AND ARTISTIC ACTIVITIES: Provide proof of income and expenses, withholdings made, and instalments paid.
• CAPITAL GAIN OR LOSSES: Sales of real estate, securities, investment funds, etc.: amount and date of purchase, amount and date of sale and amount and ancillary costs of the purchase and sale (taxes, capital gains, notaries, registers, etc.). Public deed of purchase and sale.
• OTHER: Prizes in competitions, the deposit amount if the purchase is not signed, subsidies, late payment interest, and unjustified capital gain because the tax authorities consider it income that has not been paid.

OTHER SUPPORTING DOCUMENTS

• Income received by relatives in the ascending line and /or descendants living with the taxpayer.
• Contributions to mutual funds and pension plans.
• Compensatory pension or maintenance annuity.
• Contributions to protected assets of persons with disabilities.
• Investment in primary residence: interest and capital depreciateted on mortgages or loans. Loan code.
• Renting a permanent residence.
• Life insurance surrender value.
• Business investments. Particularly in start-up companies.
• Historical heritage.
• Rehabilitation of the habitual residence.
• Income received from abroad and taxes paid on such income.
• Payment of childcare.
• Cost of works aimed at improving the energy efficiency of housing.
• Acquisition of plug-in electric and fuel cell vehicles.
• Installation of charging infrastructures for electric vehicles.

WEALTH

Considering that the wealth Tax is still in force for 2023, we will need the information relating to net wealth on 31 December 2023. Similarly, in 2023, the Temporary Solidarity Tax on Major Fortunes (IGF) remains in force, the impact of which will be more accentuated in Autonomous Communities where the Wealth Tax is subsidised.

• Assets and rights owned by the taxpayer and their valuation on 31/12/2023.
• Real estate
• Assets and rights assigned to economic activities.
• Current and savings accounts demand and time deposits, financial accounts, and other account deposits.
• Securities representing the transfer of own capital to third parties
• Securities representing the equity interest of any entity
• Life insurance
• Temporary or life annuities
• Vehicles, jewellery, luxury furs, boats, and aircraft
• Works of art and antiques
• Rights of use and enjoyment (excluding any rights over the taxable person’s permanent residence.
• Administrative concessions
• Intelectual property rights
• Contractual options
• Virtual currencies
• Other assets and rights of economic substance
• Debt, mortgages, and other credit situations on 31/12/2023.

We would also like to remind you that the aforementioned list must include assets located in Spain and abroad (Income, wealth, and assets).

Suppose the taxpayer has paid taxes in another country for income generated abroad. In that case, we shall be provided with the taxes paid abroad to check the possibility of applying the double tax deduction.

(*) This list is not exhaustive; depending on the particularities of each case, you may be asked for additional documentation that does not appear in the list in this document.