Filling out a tax return often brings uncertainty for many people. The confusion grows when there are special or unusual circumstances and there isn’t a basic grasp of how the Spanish tax system works. Not everyone has that foundation.
For its part, the Tax Agency frequently makes changes that affect how the tax return must be filed. One common situation is when a person has two or more employers.
A notable update for the 2023 tax year concerns precisely this scenario. It states that taxpayers with total income from work not exceeding 22,000 euros will not be required to file a tax return, provided certain additional conditions are met.
When there are two or more payers, the previous threshold was 14,000 euros, with the condition that the amount from the second payer onward exceeded 1,500 euros. Starting with the current fiscal year, this threshold has been raised to 15,000 euros. Taxpayers who do not reach this figure in their income will not owe either personal income tax withholdings or the final filing, under the stated conditions.
The problem of having two payers
As seen on the social media channel of a fiscal blog, the issue for people with two or more payers is that when they start a new job, the company will withhold 2 percent or even 0 percent, the minimum. That might look favorable on a monthly paycheck, but when the tax return is filed, the small withholdings add up and become relevant. Many people, who do not earn large salaries, end up facing a tax bill of 1,000, 1,500, or even 2,000 euros when they file their return.
In addition, it is advised that those who hover around or slightly exceed the 15,000-euro threshold begin planning in advance about what they will owe. This helps avoid a surprising amount to pay when the declaration is submitted and prevents an unpleasant financial shock.
Source: Agencia Tributaria. Attribution: Gobierno de España.