As the 2022-23 Income Campaign in Spain approaches, many retirees may be wondering if they have to present their income tax return. Understanding the requirements for pensioners can be complex, especially when pensions are considered income.
When is the 2022-23 Income Campaign?
As the 2022-23 Income Campaign approaches, Spanish retirees should be aware of filing requirements. The period for submitting the declaration begins on April 11, in which those who obtain income greater than 22,000 euros gross per year or receive income from two different sources that add up to 15,000 euros or more must declare to the Administration. It should be noted that pensions are considered income subject to tax in Spain, so pensioners must be aware of their economic situation to avoid possible sanctions.
Retirees in Spain have a limited period to present their declaration during the 2022-23 campaign, from April 11 to June 30. To guarantee the success of the filing process, it is important to plan ahead, gathering the necessary documentation and taking advantage of any regional deductions that may apply. Don’t wait until the last minute to declare your income, as it can have costly repercussions including fines, for example.
Do pensioners have to submit the Income Statement?
The answer is that it depends on your financial gain. Those who acquire more than 22,000 euros gross per year must submit their income statement. In addition, those who obtain more than 15,000 euros per year from two different taxpayers must also present their income statement. Consequently, if you are retired in Spain and your income meets these requirements, you must submit your income tax return.
Although some pensioners are exempt from filing their income tax return, others are not. The General Personal Income Tax Law (IRPF) exempts pensioners from presenting the IRPF in certain cases. However, pensioners who have acquired more than 1,600 euros or who have paid taxes in a joint declaration must present the income declaration. Therefore, it is essential to check if you are exempt before assuming that you do not have to file your income tax return.
It is imperative to note that if you do not file your tax return on time, you may face penalties. Consequently, if you are a retiree in Spain who must file your income tax return, it is important that you do so during the filing period to avoid any problems.
What are the Gross Compensation Requirements for Retirees?
The Gross Remuneration Criteria for Retirees in Spain are an integral factor in deciding whether to file your Income Tax Return. According to the General Personal Income Tax Law (IRPF), people who have reached retirement age and earn more than 22,000 euros gross per year are required to submit their Income Statement for the 2022-23 campaign.
However, there are extra provisional stipulations for pensioners who earn less amounts. For example, those who acquire more than 15,000 euros per year from two different payers are required to also submit their Income Statement. This is because the law considers it a greater risk of tax evasion. Therefore, even if a retiree’s gross income is less than the limit of 22,000 euros, they may be required to present their Income Statement if they meet this requirement.
Similarly, it is worth mentioning that the Gross Remuneration Criteria for Retirees may differ depending on their individual circumstances. For example, if a retiree is married and makes a joint income statement with his spouse, the gross income limit is higher, 28,000 euros. In addition, there are certain deductions and exemptions that may apply to pensioners, which may reduce your gross income and affect whether or not you must file your Income Tax Return.
What are the exceptions for pensioners?
Retirees in Spain can take advantage of an exception to the presentation of their income statement under special conditions. According to the General Personal Income Tax Law (IRPF), pensioners who do not receive more than 22,000 euros gross per year from a single source are exempt from submitting their income tax return. In addition, those who earn less than 15,000 euros per year from two different providers can also benefit from this exemption. Despite this, it should be remembered that pensions are still considered as income in Spain and those who exceed the established limits must present their income statement.
Another exemption applies to those who were part of a joint return. When the joint income of the couple does not exceed 36,200 euros gross per year, they will be exempt from presenting the income statement. In addition, those who have earned less than 1,600 euros during the year are exempt from submitting their income statement, regardless of the number of payers.
What are the requirements for pensioners who received more than 1,600 euros?
Retirees who pocketed more than 1,600 euros in 2022 are required to present the income statement for the year 2023. This total includes all the pensions they received in the last year, whether of public or private origin. However, this amount does not include the assistance or Social Security benefits that they may have received.
It is essential to bear in mind that the obligation to present the income statement does not depend on the age of the taxpayer, but on the amount of income received. In short, regardless of whether the taxpayer is over 65 years of age, they must file their return if they meet the income criteria established by the Tax Administration.
In the event that a pensioner has acquired income from more than one source in the year, the limit to present the declaration is reduced to 1,000 euros. This implies that if a pensioner received a pension from two different sources and the total amount obtained exceeded 1,000 euros, they must submit their income statement.
In conclusion, the 2022-23 income campaign in Spain has specific requirements for pensioners regarding the presentation of their income statement. It is important for retirees to know their obligations based on their income and number of payers. Although there are some exemptions, it is essential to review the guidelines carefully to avoid penalties.
Finally, at Entre Trámites we offer various agency, advisory and support services in bureaucratic processes for the self-employed, including the management of accounting and taxation for the self-employed and SMEs.
Contact us! Through the contact form you can leave your information so that we can call you, schedule a free consultation with us or write to our WhatsApp.
