Depending on the particular circumstances, resident employees, non-residents and even tourists may be eligible for a tax rebate in Spain of some sort. The types of taxes you pay depend on the type of transaction and your residency status in the country for tax purposes. In this post, we’ll take a look at the different types of tax rebate in Spain that you may be able to claim, how to get a tax return in Spain, and what will happen if you are owed a tax refund.
Types of tax rebate in Spain
The most famous tax rebate in Spain is designed for non-EU tourists who will be taking goods with them out of the country. If your purchases are above a certain value from a single retailer, you can fill out paperwork that will allow you to claim a VAT tax refund in Spain when you exit the European Union. This process is quite complicated and needs to begin in the shop where you make the purchase; the shop attendant will provide you with a form and receipts that you must keep until you are about to leave the EU. At the airport, train station, etc., you’ll have to file these papers with the customs office or a third-party service specializing in this type of tax refund in Spain. These don’t always pan out, so it’s important not to get your hopes set on a VAT tax rebate.
For residents and non-residents earning some sort of income, you may be able to get a refund of some of the income tax you paid during the last fiscal year. To do this, you’ll need to know how to get a tax return in Spain.
How to get a tax return in Spain
There are lots of different tax forms that you may need to file each year between May 1 and June 20 for income earned the previous year. Approved tobacco shops or estancos will sell the forms you need for a few cents each, but these days, there are a couple of alternatives that usually work out to be much easier. If you are determined to do it all by yourself, the first option is to file your tax return online using the Spanish tax agency’s official system.
However, because taxes can be a very confusing subject, it is usually worth it to seek out the help of a specialized tax adviser, especially if your Spanish language skills aren’t very advanced. This will make sure things get done in a timely matter and avoid penalty fees for late filing or errors on the forms.
What happens if you’re eligible for a tax refund in Spain?
If you are a salaried employee, your income tax is automatically taken out of your paycheck each month, so you shouldn’t owe any additional tax when filing. Depending on how much you earn, you may be entitled to a tax refund in Spain, which the tax agency will determine. Generally, they should send you a refund check in April before you begin to file your tax return.