Understanding the range of benefits and subsidies is vital for the well being of older adults in Spain, including supports for individuals over 52 who are unemployed and working toward reentry. These financial aids help maintain stability during transitions into new employment opportunities.
To keep receiving the Allowance for citizens over 52, several conditions must be met, including the annual income declaration.
This declaration is a mandatory step for subsidy recipients over 52, issued by SEPE, the State Public Employment Service. It serves to confirm that the beneficiary’s income does not exceed the eligibility threshold for the subsidy. The declaration ensures that the subsidy reaches those who truly need it. SEPE verifies that annual income, excluding extraordinary payments, does not surpass 75 percent of the Minimum Interprofessional Salary.
SEPE notes that beneficiaries must not have any income exceeding 75 percent of the monthly Minimum Interprofessional Salary, excluding the prorated share of two outstanding payments. If this condition is not met on the date of the triggering event, the subsidy can still be accessed if the condition is met and proven within one year from that date. Furthermore, the condition must be maintained for the entire period the subsidy is received.
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It is important to note that the 2024 monthly gross SMI is 1,134 euros, paid in 14 installments. This change affects both the subsidy application and income tax declaration for people over 52.
Income tax return procedure
Beneficiaries are required to submit to SEPE a sworn declaration of their income, including employment income, returns on capital, capital gains, and other sources.
The declaration must be filed every 12 months from the date the right begins or from the most recent reset of the subsidy. SEPE allows a 15-day period after the end of each 12-month cycle to submit this declaration.
Timely submission of this annual statement is crucial. Delays can lead to suspension of the subsidy. If income exceeds the threshold, the recipient may be required to repay any improperly received amounts. Failure to submit the annual income declaration is treated seriously by SEPE and can result in penalties, including the cancellation of aid. In serious cases, it may also lead to loss of the right to financial assistance and, if applicable, employment incentive support for up to one year, along with eligibility restrictions for vocational training during that period.
How to submit the annual income tax return online
The SEPE website provides a pathway to submit the annual income tax return for the subsidy for people over 52. Access requires authentication through a digital signature tool and a valid login obtained via Cl@ve, a Digital Certificate, or DNIe.
After identifying with one of these methods, the user should click Continue after reviewing the data protection notice. If the applicant’s data is correct, press Continue. If any information is incorrect, the user should opt out and visit the nearest employment office to request changes.
Next, the user confirms whether income has remained unchanged and indicates if the income has stayed below 75 percent of the SMI since the last notification, excluding two outstanding payments.
Bank details should be verified as the payment method for the subsidy; changes from the previous submission should be entered. Then, the residential and mailing addresses should be confirmed, and Continue clicked. Any errors require leaving the process and visiting the Employment Office.
At this stage, the user can view or download the tax return before filing. To complete the process, the user must click Submit annual income tax return and finalize the electronic signature.
A final screen will confirm the transaction is correct and provide options to download the receipt, the decision document if any, and additional information.