For older adults in Spain, understanding the range of benefits and subsidies is essential, especially subsidies for those over the age of 52. This financial support can be a lifeline for individuals who are unemployed and facing challenges reentering the job market.
Eligibility for the subsidy for citizens over 52 years requires meeting certain conditions, including the submission of an annual income statement.
This declaration is a mandatory step for subsidy recipients over 52. It is a request initiated by SEPE, the State Public Employment Service, to verify that the beneficiary does not exceed the income threshold that would disqualify the subsidy. The importance of this declaration is in ensuring the subsidy reaches those who truly need it. SEPE checks that the beneficiary’s annual income, excluding extraordinary payments, does not exceed 75 percent of the Minimum Interprofessional Salary (SMI).
SEPE notes that any personal income from any source must stay under the 75 percent SMI threshold, excluding the proportional part of any outstanding payments. If the condition is not met on the date of an incident, it can still be met and verified within one year from that date. This requirement must be maintained throughout the entire period the subsidy is received.
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It should be noted that the SMI rises to 1,134 euros gross per month in 14 payments for the year 2024. This increase impacts both the subsidy application and the income tax declaration for individuals over 52 years of age.
Income tax return procedure
Beneficiaries must submit to SEPE a sworn declaration of their income, including earnings from work, capital, capital gains, and other sources.
The declaration must be submitted every 12 months from the date the subsidy right begins or from the last renewal of the same right. SEPE sets a 15-day window after the end of each 12-month period to submit this declaration.
Timely submission of this statement is crucial. Failure to comply may lead to suspension of the subsidy. If a beneficiary is found to have exceeded the income limit, repayment of any improperly received funds may be required. Not submitting the annual income declaration is treated as a serious violation by SEPE and can incur penalties. In extreme cases, the subsidy can be canceled and the right to receive any financial assistance, and possibly employment incentives, can be suspended for up to a year and participation in employment training could be restricted 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 years of age. Access requires authentication through digital tools such as a Cl@ve account, a Digital Certificate, or a DNIe.
After identification with one of these methods, users should press the Continue button following the display of the data protection notice. If the applicant’s information is correct, click Continue. If any data is incorrect, choose Opt Out and request a correction at the relevant employment office.
Next, users should verify the statement that income did not change and press Continue if they have earned less than 75 percent of the SMI since the last notice, excluding two outstanding payments.
Then, verify bank details, which are needed for subsidy payments and should be updated only if they have changed. Press Continue. The next step is to confirm the residential and reporting addresses and proceed. If any errors occur, abandon the process and visit an Employment Office.
From there, the annual income tax return can be viewed and downloaded before submission. To complete the process, click Submit annual income tax return and proceed with the electronic signature.
Finally, a concluding screen will confirm that the transaction is correct. There, the user can download the receipt, any resolution, and additional information as applicable.