# Tax returns in Spain.



## nina874 (Mar 13, 2010)

I know, I know, the woman with a million questions!

Does the tax return system work in the same way as in the UK? What I mean is do the Spanish have a tax year that runs from one point to another with allowances etc and then at the end of the year you put in the returns and they pay it in one sum (assuming income from dividends here) or do you pay on account, or in arrears or what?

Trying to get my head around what my liability will be and when!

Thankyou again for all your patience!


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## Tallulah (Feb 16, 2009)

nina874 said:


> I know, I know, the woman with a million questions!
> 
> Does the tax return system work in the same way as in the UK? What I mean is do the Spanish have a tax year that runs from one point to another with allowances etc and then at the end of the year you put in the returns and they pay it in one sum (assuming income from dividends here) or do you pay on account, or in arrears or what?
> 
> ...


The tax year in Spain runs from Jan to Dec. Tax returns are submitted by end June following the end of the tax year. A very popular downloadable programme called "PADRE" is used by a lot of people who do their own returns. Obviously gestorias have their own preferences and may not use this system. 

All your worldwide income is declared on this form - as are all relevant details incl tax already paid on external earnings etc etc. At the end of this, the programme (PADRE) calculates whether you owe them or they owe you. 

Spanish language is a must for using this programme - if nothing else to ensure that for example, when a field requires the profit from, lets say, a policy - one doesn't enter the total paid out and forget what they've paid over the last X years in order to get that. Not a brilliant example, but hopefully you get my drift!

Tax returns done by a gestoria are not expensive for most individuals who have the basics - bank interest, rents, the odd dividend etc. Obviously the more complex so the more expensive it becomes, but likewise the more info you can supply to avoid the gestoria doing any fact finding, the more you keep costs down. A very straightforward one was done last year by someone I know and it cost them less than 40euros and it included a sale of some land which involves patrimonio, taxes and at that time also factoring number of years owned - etc although that has recently changed and I'm not sure if you still get the choice this year or it's a straight 18% of profits?? Also, worth noting that there are subtle changes relevant to allowances or not, or quantities given in allowances with regards to each autonomous region.

I would recommend you going to a gestoria until you are more up to speed with the system. Please note that this advice is for your average individual and i have no idea what the process would be if you were a company director taking dividends from a company in the UK. This would require an international tax accountant as opposed to your basic gestoria.

Tallulah.


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## SteveHall (Oct 17, 2008)

With Taliban, you should get to a gestor who can explain the various. A good gestor can save his fees. If he can´t get another one.


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