Understanding the 2024 Income Tax Return for Self-Employed and Employees in Spain
Although there are still several weeks before the income tax deadline opens, the tax agency has already made its platform available to help determine whether you will owe extra taxes or receive a refund. The agency has updated its portal to make these tasks easier, especially for self-employed individuals who will manage their filings for the first time this year.
The 2024 income tax campaign will begin on Wednesday, April 3, and run through Monday, July 1. Taxpayers must submit their income and expense details during the three months when the filing season is open so the tax authority can decide, later on, whether taxes were overpaid or underpaid during the normal course of the year. If you fall into the first category, you are in luck because the tax office should refund money. If you are in the second group, you will need to compensate the shortfall by paying more to the administration.
Before dread or celebration sets in, anyone can check the result of this process using the well-known Hacienda drafts. These drafts allow a real-time simulation of everything that must be included in the document before submission, and they will alert you if anything is missing. Once everything is entered, the system processes the calculation in advance. With this result in hand, taxpayers will know whether they have a cushion to contribute more money or if they need to tighten spending and reduce expenses.
Open RENTA Web Open as the primary tool
The Tax Agency has refreshed its tools with the latest tax updates to help users understand in detail what the return document will look like. In addition, autónomos will be required to complete the declaration under certain conditions. This change was approved in 2022 and first applied to the 2023 fiscal year, so it does not represent a new obligation for this year. It is part of Royal Decree-Law 13/2022, dated July 26, which establishes a new social security system for self-employed workers and enhances unemployment protection for the self-employed.
Procedural steps for both self-employed workers and employees
Whether you are self-employed or an employee, here is what you need to do to complete the draft:
- Open the Renta Web Open platform.
- Click the “New declaration” button.
- Select your language (Spanish, Valencian/ Catalan, Basque, or Galician).
- If you are self-employed, enter your tax identification number, full name, marital status, date of birth, gender, and your autonomous community.
- If you are an employee, you may skip the previous step.
- After completing the process, go to the “Declaration sections.”
When you finish, you will still need to fill in the 54 pages of the document by completing the different sections requested: income, church allocations or not, social actions, and more. After finishing everything, save the simulator and click on “Validate” to obtain a detailed result of the outcome.
Who Must File an Income Tax Return?
The tax authority has updated its criteria for this year. Only taxpayers with income above 22,000 euros if it comes from a single payer, or 15,000 euros if it comes from two or more payers, are required to file. The latter threshold has been adjusted this year, rising from 14,000 to 15,000 euros. Those included in this group should note that the combined income from the second payer or other sources must exceed 1,500 euros per year.
Interpretation and practical guidance: if your earnings meet or exceed these thresholds, you should prepare to complete the official return, ensuring you report all eligible income and deductions accurately. This helps prevent surprises and aligns with updated rules introduced in recent years.