Who is obliged to declare Spanish tax in 2022

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In Spain, anyone who meets certain criteria must submit a tax return. This includes both Spanish citizens and expatriates. An expatriate is considered a permanent resident if they meet any of the following requirements: if their stay on national territory is longer than 183 days per year, if their main economic interests/activities are located in Spain, or if their spouse and dependent children habitually reside in Spain.
Once an expatriate’s tax residence has been determined, they must pay taxes in Spain for all their worldwide income. In general, expatriates are obliged to declare their income tax return in Spain if they receive income from work or pensions that exceed 22,000 euros per year and tax has been deducted.
If their income comes from more than one payer, or there is no Spanish tax withhold, the limit is 14,000 euros per year. For instance, a British citizen residing in Spain who receives a State Pension of 5000 euros and another Private Pension of 9,500 euros would be obliged to declare since their total income exceeds the limit for the obligation to declare.
Expatriates must also declare any rental income exceeding 1,000 euros per year, as well as any dividend income, interest, and capital gains, provided they are subject to withholding in Spain and do not exceed 1,600 euros.
Failing to submit a tax return in Spain can result in fines and other penalties. Therefore, it’s important for expatriates and Spanish citizens alike to understand their obligations when it comes to taxes. Seeking the assistance of a tax professional can be helpful in navigating the complex tax laws and ensuring compliance. By staying on top of their tax obligations, expatriates can avoid any legal issues and enjoy their time in Spain with peace of mind.

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