Income tax threshold

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26 Feb 2013 14:22 by camposol Star rating in Camposol. 1408 posts Send private message

What is the  official income tax threshold in Spain-  if you ask anyone the answer varies tremendously.

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26 Feb 2013 15:33 by johnzx Star rating in Spain. 5247 posts Send private message

  I found this
Personal Allowances for Spanish income tax- minimo personal

General allowance     5,151 euro
Age allowance (65+)  6,069 euro          (75+)  6,273 euro
Disabled allowance   2,316 - 7,038 euro depending on degree of incapacity

Child allowance

First child               -      1,836 euro
Second child         -      2,040 euro
Third child              -      3,672 euro
Each further child  -     4,182 euro

Elderly relative living with family whose income is less than 8,000 euro pa:

65+     918 euro
75+  1,122 euro

Maternity allowance (Reduccion por cuidado de hijos)

2,244 euro pa per child under three years old.

Earnings related Personal Allowance (for employees)

Earnings not more than 9,180:       4,080 euro
Earnings 9,180 to 13,260:                4,080  -  35% x (Earnings - 9,180)
Earnings 13,260 +  :                          2,652 euro

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26 Feb 2013 16:07 by lobin Star rating. 246 posts Send private message


Camposol, the answers vary because it depends on the regional authorities and also on the particular circumstances of each taxpayer.

The deductible amounts mentioned by Johnx  vary each year.  They can also be increased by the Comunidad Autónoma in which the taxpayer resides.  Many Comunidades increase these deductibles.  Therefore, this needs to be checked locally.

As to the annual income amount under which there is no obligation to file a tax return, this amount also varies each year and can be different depending on the particular circumstances of each tax payer.  For example for 2012, the general threshold is 22.000 euros of total annual income but this applies only when there is only one source of income.  In case of more sources, there are different rules for calculating the threshold.  Also, there are different rules when the taxpayer receives income from a spouse as alimony or child support or when the payer of the income does not make withholdings on account, as for example, in a foreign pension.


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26 Feb 2013 16:27 by johnzx Star rating in Spain. 5247 posts Send private message

I realise that I am liable to shot down on this, but I remember reading (somewhere) that the exception from making a tax return for those earning under a certain amount was precisely that ’earning’.
That is, those who are employed and thus their employer include them in their return. For those who do not work including UK pensioners, I understand that they are obliged to make a return, regardless of the level of income. 
I am just around the tax allowance, so some years I have had pay a little, other years none, but I have always made a declaration.
NB   As I said, I am not saying this is 100% correct (but making the declarations has meant when I have sold, no retention was required,  as I was able to prove by my returns that I was tax resident).

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26 Feb 2013 16:30 by Team GB Star rating. 1245 posts Send private message

Team GB´s avatar


Lobin, you are correct.

I always think these people explain it quite well




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26 Feb 2013 16:35 by johnzx Star rating in Spain. 5247 posts Send private message

Ream GB


From yoir post it would seem my understanding was correct


QUOTE Just as in the UK, Spain has a system of taxation at source which mean a lot of people never fill in a tax return. If you have a salary and some bank interest which have both been taxed at source by your employer and bank respectively, you will already have paid your tax and will not have to do a return provided the combined income does not take you into higher tax rates which would mean a supplementary tax bill has to be calculated.

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26 Feb 2013 16:50 by lobin Star rating. 246 posts Send private message

 Hi, Johnx

You are correct because although the rules are detailed, the general idea behind them is that when the income a taxpayer receives has been subject to tax withholdings at source, as is the case for earned income most of the time, then the threshold is higher (22.000 per year for 2012) and when the income is not subject to tax having been previously withheld, the threshold is much lower (11.200 euros per year for 2012).  Also the threshold is even lower when the source of income is only income from capital (interest, dividends, etc.).

The main reason is that Hacienda has roughly calculated that if tax has been withheld by the employer or other payer at the usual rates for earned income, the 22.000 total income means that the taxpayer will most likely be entitled to a refund of tax withheld, thus rendering the filing of a return to obtain the refund voluntary.  That is the reason for the only one payer rule, because if there are several payers then the amount withtheld by each one may substantially reduce the level at which tax withheld needs to be refunded.

So you are right in saying that, in general, the higher threshold applies mostly to earned income and the lower threshold to other circumstances. However, I would advise everyone to check what their particular threshold is.

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26 Feb 2013 16:55 by Mungry Star rating. 329 posts Send private message

i do know that even if you are taxed at source its in your interest to submit a tax return anyway.

i did in 2008 before i went autonomo and got 4k back


i coldnt stay away from you miserable whining whingers for some reason

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26 Feb 2013 22:23 by aliton Star rating. 331 posts Send private message



So Now with your rebate you can afford go to IKEA  "mongrel"


  Fomer member revisiting r.




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27 Feb 2013 15:33 by camposol Star rating in Camposol. 1408 posts Send private message

I understand the 22,000 level is:

For those whose salary has already had deductions

The  money comes from one source

Does not apply to those who are eligible  to apply for the double taxation treaty between UK and Spain

In other words this does not apply to any retired expats. I find that people are told  inaccurately, by so called tax experts  that they can receive up to 22,000 euros before tax- they go away delighted, indeed I was told this myself, and had to find out that the actual threshold was much lower.


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19 Jul 2013 08:41 by KERRYB Star rating in Wales & Murcia. 113 posts Send private message

with regard to the child element is it children upto the age of 16, 18 or some other age?

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19 Jul 2013 12:29 by formentera costa Star rating. 369 posts Send private message

hi johnzx

the figures you quoted are exactly the same as my

solicitor uses to do my tax  return.

same figures(no increase) he has used for the

last 3 years.



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