When Does the 2024 Income and Wealth Tax Campaign Start in Spain?

The 2024 Income and Wealth Tax Campaign officially began this Wednesday, April 2, with the launch of online tax return submissions. Taxpayers can now access their tax data through the official website and mobile app of the Spanish Tax Agency.

According to the published calendar, the campaign began before the start of Holy Week. This Wednesday, April 2, marks the opening of the online filing period, which will run until June 30, 2025.

From May 6 to June 30, 2025, the Tax Agency will be able to prepare taxpayers’ returns over the phone. Appointment requests will be available from April 29 to June 27.

In-Person Assistance and New Payment Methods

Between June 2 and June 30, 2025, the Tax Agency will also offer in-person tax return preparation services at its offices. Appointments for this service can be booked from May 29 to June 27.

However, it’s important to note that the deadline for returns with a payable amount and bank direct debit is June 25.

For the first time, the Tax Agency (AEAT) plans to allow taxpayers to pay their income tax returns via Bizum, in addition to traditional methods such as bank direct debit, account charges, Complete Reference Number (NRC), or in-person payment at a bank.

Obligations, Corrections, and Assistance for Seniors

As with last year, self-employed workers will be required to file a return, regardless of income, as well as recipients of the Minimum Vital Income (IMV). Meanwhile, unemployment benefit recipients will not be required to file a return this year, despite initial expectations.

The Tax Agency is introducing a new unified system for correcting self-assessments, which will replace the current dual system of complementary returns and rectification requests in applicable taxes.

This means taxpayers can now correct, complete, or modify their submitted self-assessments through a rectifying self-assessment, regardless of the result, without needing to wait for an administrative resolution.

Mutual Societies and Tax Reform

Personalized assistance includes telephone support via the “We’ll Call You” plan, and in-person help with return preparation at Tax Agency offices and other locations enabled by autonomous communities, autonomous cities, and local authorities.

Additionally, under the agreement between the Tax Agency and the Platform of Seniors and Pensioners (PMP), a special plan remains in place to assist people over 65 living in small municipalities with their income tax returns.

Retired mutual society members eligible for personal income tax (IRPF) refunds should keep an eye on the upcoming regulatory changes announced by the Ministry of Finance, which will allow them to claim the full amount in one single payment during 2025.

DANA: Exemptions and Deductions

Initially, under the tax reform framework, mutual society members were to claim excess IRPF payments year by year from 2025 to 2028. However, the Ministry has now decided to modify the law to allow a one-time claim, though the new process has not yet been announced.

The Government’s tax reform, approved at the end of 2024, included a change to the IRPF refund procedure for mutual society members, following Supreme Court rulings, covering tax years 2019 to 2022.

This change was significant because mutual society members could previously file a single refund request to recover overpaid amounts from past years.

Tax Measures for Those Affected by DANA

However, the new process under the reform would have required affected mutual society members to file separate refund claims each year from 2025 to 2028, within the IRPF filing deadlines.

Following pressure from associations, unions, and government partners, the Ministry has now opted for a single lump-sum payment during 2025.

The Hacienda technicians’ union (Gestha) has also reminded the public that various tax relief measures have been approved for those affected by the DANA storms. First, aid for material damages is tax-exempt, including compensation from the Insurance Compensation Consortium, which is considered aid for IRPF purposes.

Self-Employed, Damage Repair, and Module System

If the total aid received, including Consortium compensation, is less than the acquisition value of the damaged asset, it will result in a capital loss for IRPF purposes.

Conversely, if the aid plus compensation exceeds the acquisition value, there will be a capital gain, but it is not taxed if the gain is less than the amount of aid and compensation received.

Aid to repair material damages caused by DANA, including Consortium compensation, is considered a capital gain only if it exceeds the repair cost. Accordingly, repair costs up to the value of the aid and compensation will not be considered deductible expenses.

Aid for Personal Damages Is Exempt

In addition, aid for personal damages is also tax-exempt, and so is assistance for temporary or permanent eviction from primary residences or commercial premises.

Likewise, extraordinary payments made by employers to cover personal or material damage to homes, belongings, and vehicles of employees and their families are exempt from taxation, unless the amount exceeds the certified value of the damages, in which case the excess is taxable.

Self-employed workers operating under the module system in affected areas will benefit from a 25% reduction in their IRPF net module income, in addition to the standard 5% reduction for 2024, and a 25% reduction in VAT payments under the simplified regime. They may also opt out of the module system for their 2024 IRPF return and switch to simplified direct estimation, without the need to meet the usual formal obligations.

Source: Mallorcainforma.com