The campaign for the 2024 Income Tax return has officially begun, starting on April 2, 2025, and running until June 30, 2025. This year, more than 24 million taxpayers in Spain are required to declare their income generated during the last fiscal year. The process aims to help individuals settle their financial obligations with the Agencia Tributaria (Tax Agency) and potentially receive refunds for overpaid taxes.
Taxpayers who earned more than 22,000 euros from a single payer in 2024 must file an annual IRPF (Impuesto sobre la Renta de las Personas Físicas) return. Those who earned over 15,876 euros from two payers, provided they received less than 1,500 euros from the second and any subsequent payers, are also required to submit their returns. The rules aim to ensure that those with significant income levels contribute their fair share to the public coffers.
For those who are expecting a refund, Hacienda aims to process these payments within one month if the tax return is correctly completed. However, the law stipulates that the administration has up to six months from the end of the filing period to issue refunds. If the six-month period lapses without payment, Hacienda is obliged to return the IRPF amount along with interest for the delay. Notably, if the delay is due to errors in the taxpayer's return, such as incorrect documentation or bank account information, Hacienda is not liable for additional interest.
To check the status of their tax returns, taxpayers can access the "Servicio tramitación de borrador / declaración (Renta WEB)" on the Tax Agency's website. Identification can be done through several methods, including a digital certificate, Cl@ve PIN, or the reference number from their previous year’s return. Once logged in, taxpayers can see the status of their return, which may indicate that it is being processed, under review, or has been finalized.
Common reasons for delayed refunds include discrepancies in the information provided by taxpayers compared to what the Tax Agency has on file. This can happen due to changes in personal data, unreported income, or errors in the tax return. If the return is flagged for verification, it may take longer for Hacienda to process the refund.
Another significant aspect of the current tax campaign is the introduction of new requirements for unemployed individuals and beneficiaries of the Ingreso Mínimo Vital (Minimum Vital Income). These groups must now file their IRPF returns to continue receiving their benefits, reflecting a shift in policy aimed at ensuring compliance across various taxpayer categories.
Additionally, the campaign has also embraced technology to make the filing process more accessible. Taxpayers can now file their returns using mobile applications provided by the Agencia Tributaria, allowing for a more convenient experience. This year, the option to pay taxes via Bizum has been introduced, alongside traditional methods such as direct debit and in-person payments at banking institutions.
As taxpayers prepare their returns, understanding the implications of income generated from investment platforms such as Trade Republic and Revolut is crucial. Income from these platforms, which allows users to invest in stocks, ETFs, and other financial instruments, must be declared as capital gains or income. It's important to note that these platforms do not automatically withhold taxes, placing the onus on the taxpayer to report their earnings accurately. For instance, earnings exceeding 50,000 euros from these platforms necessitate the submission of Model 720 to declare foreign assets.
For individuals using Trade Republic, any gains from the sale of shares or ETFs are subject to tax rates ranging from 19% to 28%, depending on the total annual gains. Similarly, users of Revolut must declare any income or capital gains, including those from cryptocurrency transactions, which have become increasingly popular.
Taxpayers can check whether their return results in a refund or a payment obligation by looking at box 550 on their tax form. A negative result indicates that Hacienda owes money to the taxpayer, while a positive result means the taxpayer must pay Hacienda due to insufficient withholding throughout the year.
If errors are discovered after filing, taxpayers are required to notify Hacienda promptly. Depending on the nature of the error, they may need to submit a rectification request within four years or a complementary declaration to correct any omissions. The deadline for these submissions aligns with the general filing deadline of June 30, 2025.
As the deadline approaches, it’s essential for taxpayers to stay informed and ensure that their filings are accurate and submitted on time. The convenience of online filing through the Agencia Tributaria's platform and mobile application simplifies the process, but it also requires vigilance to avoid mistakes. Taxpayers should take advantage of the resources available to them, including downloadable tax statements and guidance on how to declare investment income.
Ultimately, the 2024 Income Tax campaign represents an opportunity for millions of taxpayers to fulfill their civic duties and potentially receive refunds for overpayments. As the deadline approaches, staying informed and organized will be key to navigating the complexities of the tax system.
