Introduction: Declaración de la Renta 2021 (Spanish Tax Return)
This year the campaign starts a little later than usual, and it is on 6 April when the deadline for filing the income tax return for 2021 begins, the deadline for which ends on 30 June.
As we do every year, we recommend that you ask a professional Gestoria to prepare your income tax return, as there are many factors to take into account when filing it.
Although they are apparently simple incomes, it is necessary to take into account important aspects such as the correct deduction of the mortgage, the percentage of deductibility of shared or joint children or the regional deductions, which normally the draft income tax return does not include.
That is why at Gestorspain (part of the Asesorania Group) we review and corroborate, with the client, all the relevant aspects to take into account before filing and we also take into account that personal circumstances may change from one year to another, such as tax residence, mortgage expenses, marital status and other issues to be taken into account.
It should also be borne in mind that the administration itself is not responsible if the data in the draft are not correct, either because not all the income appears or because the data are not up to date or are obsolete, or because some data have not been updated.
One of the most important aspects is to check the obligation to submit the income tax return, as there are many taxpayers who confirm the draft, going out to pay the Tax Agency when they are not really obliged to submit it. And there are also many cases of people who do not file their income tax return, because “as they are not obliged” they do not need to do so, and they receive a refund, so it is “expensive” for them not to put themselves in the hands of professionals.
There are some new features for this year’s campaign, which are briefly explained below:
Cryptocurrencies
The tax agency has already updated itself on the subject of cryptocurrencies or virtual currencies, Bitcoin is the most famous, but there are many more, and we have to take them into account in this year’s tax return.
Profits from the second-hand market
Another new change is the taxation of profits derived from the non-professional buying and selling of second-hand goods, which is very common for many users.
Energy efficiency improvements
Work carried out in the home to improve energy efficiency should be taken into account for tax deductions, such as the installation of new windows or the installation of solar panels, which are tax deductible.
New personal income tax brackets
A new 47% bracket has been created for incomes over 300,000 euros, which in practice affects few taxpayers.
Pension plans
They are a recurrent way to have some tax advantage, but from January 2021, the tax deduction limit for private pension plans will increase to 2,000 euros and to 8,000 euros for company pension plans.
Changes for foreign workers
There are changes in the personal income tax brackets, from 24% for taxable income below 600,000 to 47% for taxable income above 600,000.
Conclusion
We recommend that before confirming the draft income tax return, you take into account all the possible tax deductions that you can apply so that your income tax return is as advantageous as possible and you have the maximum tax yield.
Before submitting the income it is always important to check that there is an obligation to file the return, as there are many cases in which the taxpayer is not obliged to file, the tax agency does not always warn of the non-obligation and the taxpayer ends up paying an amount that does not correspond.
Asesorania as a professional office and social partners of the tax agency with more than 10 years of experience filing tax returns, we can help you to prepare and submit the tax return for the year 2021.
Best regards from the Asesorania team.