Accepting a draft without reviewing it is like letting the opposing team’s referee keep score in your game. It’s convenient, sure, but it rarely works in your favor.
It’s that time of year again when your heart starts racing: tax season. The system is already prompting you to click the “Accept Draft” button, but before you give in to the temptation to rush through it, let’s be clear.
What is income tax, and who is required to file a return?
Personal income tax is a tax levied on the income of individuals in Spain. This includes not only wages but also income from business activities, investment income, and capital gains (such as the sale of real estate, cryptocurrencies, etc.).
Not everyone is required to do this, but it is essential to assess your situation to avoid penalties. Generally speaking, the requirement applies to those who:
Exceeding the salary limits
More than €22,000 per year from a single payer, or more than €15,000 if there are multiple payers.
They receive other income
Rental income, investment income, or capital gains that exceed the established thresholds.
The Reality of Income Tax: The Game of Deductions
Every day, we see taxpayers giving away money simply because they don’t understand the “fine print” of the law. The IRS is required to ensure you comply, but it’s not their job to find you the biggest possible savings; that’s our job.
IN YOUR FAVOR
The Hunt for Deductions
Rent, donations, union dues, or state tax deductions for maternity leave or education. There’s a whole range of benefits that the draft tax return often “overlooks.”
Preventive Legal Engineering
If you own cryptocurrency, have income from abroad, or have sold a property, a properly filed tax return today is your best defense against a tax audit tomorrow.
Knowing that your tax return has been reviewed by a legal professional gives you peace of mind. The tax authorities have four years to come knocking on your door; it’s best if they don’t find any grounds to do so.
Don’t settle for what the tax authorities “think” you owe; let us take care of you
Request your personalized review.
Make sure you claim your deductions.
Trust our legal expertise.
Experience in real estate and legal consulting.
