Tips for completing 2018 Income Tax Return

The period for submitting the 2018 personal income tax return started on April 2. Below we indicate some of the most important new developments and aspects to consider when submitting your return.

How long do I have to submit my return?

From April 2 until Monday July 1. However, if your tax return indicates that you owe tax and you wish to arrange a direct debit, you must do so by Wednesday June 26.

If your tax return indicates that you owe tax, you still have the option to split that sum into two installments, with no interest or surcharges. If you choose to pay in installments, the first must be for 60% of the tax owed. You must pay the remaining 40% by November 5, 2019.

How do I submit my return?

You must file the return digitally. This year, for the first time, you cannot complete a paper tax return. Instead, you must submit it online.

You can complete and submit the return using the “Renta Web” tool offered by the tax authorities (“AEAT”), which you can access here.

You can also confirm and submit the return through the mobile app “Agencia Tributaria,” by phone, at AEAT offices by appointment, and in other authorized offices.

What is the draft tax return?

To help you to complete your return, AEAT provides taxpayers with their tax information and a draft return. However, AEAT does not send the draft return by post. This information, also known as your tax information or your “draft revenue” includes earnings of which AEAT has knowledge.

How do I see my tax information?

Go to this link and click “See your tax information” (Consulte sus datos fiscales).

Remember that your tax information may not include all earnings received in the year.  Therefore, you must review in detail the tax information that the tax authorities have on you, and check in case of any changes to personal details that may have an impact on your tax return, e.g.,  you have any additional children or have changed your marital status or tax residence.

What income do I need to include?

Payers of personal income tax must pay tax on their overall income, so the return must include all earnings obtained in the 2018 tax year, whether in Spain or abroad.

Do I pay tax individually or jointly with my partner?

Taxpayers can choose to submit an individual or joint return if they are part of a family unit. The number of members in a family unit is from December 31, 2018, when the tax accrues.

New for 2018 is a tax deduction for taxpayers forming part of a family unit in which one member resides in another Member State of the European Union or the European Economic Area, meaning that they cannot submit a joint return.

What new developments affect my 2019 income tax return?  

There are key new developments that affect the 2018 tax return.

The negative balance of movable capital from taxable savings income is offset by the positive balance of capital profits and losses included in taxable savings income, with the limit of the offset rising to 25% in 2018 (limited at 20% in the 2017 return).  Likewise, the negative balance of capital profits and losses from taxable savings income is offset with the positive balance of movable capital income, capped at 25% of the latter. The 25% offset limit also applies to negative balances carried over from 2015, 2016 and 2017 returns.

Other key developments for the 2018 tax return is the change to the maternity deduction and to the large family deduction.

The maternity deduction has increased from €1,200 annually with an additional amount of up to €1,000, where there are childcare costs for a child of under three years in authorized nurseries or pre-schools.

The large family deduction has risen by €600 euros per year per child forming part of a large family, in families exceeding the minimum number of children required to be classed as a large family under the general or special category.  However, due to the entry into force of the new measure, for 2018 the additional increase in the deduction increases to a maximum of €250.

Who is exempt from filing an income tax return?

Taxpayers earning income from work of (i) €22,000 annually or less from a single payer, and (ii)  €12,643 annually if those earnings are from more than one payer and there are no other earnings for which they must file a return by law.

More frequently asked questions?

Click here to access a list of frequently asked questions provided by AEAT to clarify the most common queries.