2022 Personal Income Tax Return.

The 2022 Personal Income Tax (IRPF) filing season opens on April 11 and will close on June 30, 2023. For this purpose, as it does every year, the Spanish Tax Agency (AEAT) has set up the income tax campaign portal on its website, from which IRPF tax data can now be downloaded

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Personal Income Tax is a tax payable to the State by individuals resident in Spain. It taxes the income obtained over the course of a year, taking into account each person’s personal and family circumstances.

A taxpayer’s income consists of all of their income items (rendimientos), capital gains and capital losses, and the income attributions (imputaciones de renta) established by law, regardless of where they arose and whatever the residence of the payer.

When does the 2022 income tax campaign begin?

• Online filing of the 2022 income tax return will begin on April 11 and run until June 30, 2023.

• Filing by telephone will be available from May 5 to June 30, 2023.

• The period for filing the 2022 return in person, at the Tax Agency’s offices, will begin on June 1 and end on the 30th of the same month of 2023.

What percentage of income is paid in IRPF?

The percentage of income obtained that is paid to the State depends, first of all, on the type of income. Savings income is taxed at a lower percentage than income that does not form part of savings, known as general income.

This general income is taxed according to a progressive scale: the percentage of income paid in IRPF increases as income rises. In this way, people with lower incomes are favored.

The IRPF brackets for 2022 are:

• From €0 to €12,450: 19% withholding.
• From €12,450 to €20,199: 24% withholding.
• From €20,200 to €35,199: 30% withholding.
• From €35,200 to €59,999: 37% withholding.
• From €60,000 to €299,999: 45% withholding.
• Over €300,000: 47% withholding.

Furthermore, the taxpayer is not taxed on the whole of their income at the highest withholding rate; rather, the percentages are applied one by one, starting with the lowest. For example, if a person earns €22,000 gross per year, they do not pay 30% of that total in IRPF, but rather 19% on the first €12,450, 24% on the next €7,750 (second bracket), and 30% on the remaining €1,800 (third bracket).

New IRPF brackets in five Autonomous Communities

Regional taxation also brings significant changes.

Madrid, Andalusia, Galicia, Murcia, and the Valencian Community have amended their IRPF brackets this year, and they have done so retroactively, so the changes will affect self-employed workers in those regions in their 2022 income tax returns.

In Madrid, the IRPF cut will result in average savings of €46 per taxpayer filing a return; self-employed workers in the other regions mentioned in the previous paragraph will save similar amounts.

Important Note

When preparing income tax returns, it is important to review all the data provided by the tax authorities. Some items that benefit taxpayers may appear incorrectly, or may not appear at all. For example:

• If you acquired your main residence before 2013 and are entitled to the home purchase tax credit, you should check that the loan installments paid are shown and, if they are, verify that they are correct.

• If you receive employment income, remember that, up to certain limits, trade union dues or professional association fees, as well as legal defense expenses, are deductible.

• In the event of the birth or adoption of children, it is advisable to check that the allowance for descendants (mínimo por descendientes) has been taken into account and to add the corresponding information.

• It is important to verify that the additional tax credits you are entitled to under the rules of the Autonomous Community have been applied.

Our professionals are at your disposal to help you file your IRPF return correctly.