Hi, i have a query regarding Spanish Income Tax, i am told that if my world wide earnings are less than 22,000 euros per year i do not have to submit a tax return. However, i am now advised that, although my earnings are less than this figure, because they are accrued from multiple sources i must pay tax. seems cockeyed to me, anyone out there have any knowledge of this problem? Regards David.

It is not cock eyed if you have the whole picture.

If someone is employed and earns one salary (less than 22k) their tax affairs will be sorted out by their employer and they have no need to make a tax return.

Anyone who is resident in Spain and has multiple income streams, or earns their income tax free at source, receives pension income etc gross regardless of total income - then they need to make a tax return and be fiscally resident.

This has benefits and is of course the law, certainly for EU citizens.

I think there are other issues for non-EUers.

Thanks Rob, That sounds about right. Regards David.

OK glad it helped - some similarity to the UK in that low income earners seldom need to fill out a tax return form whilst higher earners with more complex affairs do.

Spanish gestorias with little experience of dealing with foreigners will often tell you not to bother if you have less than 22k income but then you could miss out on tax benefits and of course those receiving income gross would also need to make a tax declaracion. One of its latest uses is proving income for health cover claim.

Thanks again Rob, guess i’ll just grit my teeth and keep paying. Did’nt someone once say that the only inevitabilities in life were death and taxes? Regards David.

They sure did and it even applies in Spain now!