What information do you need to prepare your annual tax return?

Before preparing your annual tax return, it is essential to gather key figures.

But where can you find them?

Annual tax returns typically cover several income types.

• Employment income: wages, salaries, pensions and other compensation.
• Real estate income: rental income from properties.
• Non-real estate assets: investments, cryptocurrency and similar assets.
• Business income: income from self-employment or business activities.
• Accrued income: a type of wealth-related tax item.
• Capital gains: gains from the sale of assets.

Calculating the taxable amount

For each type of income, determining the taxable amount usually involves three elements.

• Gross income.
• Deductible expenses.
• Allowances and deductions.

If taxes were withheld in Spain or abroad, those amounts should be factored in to reduce your overall tax liability.

Key documents

Most of the necessary information comes from summaries or certificates provided by payers.

If the income was earned in Spain and the payer was required to withhold taxes, the Spanish tax authorities likely already have part of that information.

However, the data may not be complete, especially regarding deductible expenses.

Employment and pension income

• Pay slips.
• Payer certificates.
• If the income is from Spain, it will usually appear in your tax data automatically, so no additional document may be needed unless something is missing or incorrect.

Business income

Your accountant should provide summaries of business accounts showing gross income, expenses and taxes paid.

Property rental

For rental income, provide the following details.

• Gross rental income.
• Deductible expenses.
• Registered property value.
• Type of lease, such as long-term or otherwise.
• Taxes withheld, if any.
• Number of rental days per year.

Dividends

A certificate from the payer is required.

If you have an investment portfolio, your bank or broker should provide the necessary tax details.

Bank interest

A certificate from your bank should cover any interest earned.

Cryptocurrency or shares

Cryptocurrency and shares are treated as assets, and capital gains arise when you sell them.

The broker or exchange certificate should include:

• Purchase price and date.
• Selling price and date.

Property sales

When selling a property, the capital gain must be declared.

Make sure you have the following information.

• Purchase price and date.
• Selling price and date.
• Deductible legal costs, such as notary, lawyer or agent fees, if you have invoices.
• If the property was used for business or rental activity, depreciation amounts previously deducted may need to be included in the capital gain calculation.

Submit your tax return

Once your documents are organised, you can submit your Spanish tax return through our dedicated tax return service.