It will soon be time to start thinking about the Annual Spanish Income Tax return (RENTA). This is an annual tax declaration that a Resident of Spain has to take into consideration declaring the income they receive.
Income comes in many forms, Pensions, Employment, Income from Property, Interest & Dividends to name a few. Where the income is received is irrelevant, it is the amount received annually that the Spanish tax authorities are interested in.
Income needs to be declared correctly following the Double Taxation Agreement between Spain and the UK which clearly states the different sources of income and in which country they are to be taxed, this is to avoid double taxation paying tax twice on the same income.
Due to the Exchange of Information Act being enforced you should be aware that the Spanish tax authorities receive information from other countries on a person’s income and use this information to check and investigate if they have complied with their obligation and submitted the relevant tax returns in Spain.
The voluntary period for the annual Spanish tax return for 2020 (RENTA 2020) begins on the 7th April 2021 and ends on the 30th of June 2021.
If you have any doubts about your tax affairs, wondering if you have things in order or not then get in touch with us and we will be happy to be of assistance. We are Registered Agents with HMRC in the UK and have knowledge of both the UK and Spanish tax systems.