Updated Wednesday,12April2023-17:57

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Since April 11, the 2022-2023 Income Tax campaign has been underway. As every year, millions of Spaniards will have to file their return accounting for their annual income and cross their fingers that the result is favorable to them.

And, as every year, there will be many questions that will hover over the heads of taxpayers. Is it mandatory to file the declaration? What if I get the draft wrong? Is it better to make the declaration as a couple? What can I deduce?

They may seem like unimportant questions, but to avoid problems with the Treasury it is important to know the answers and why. Making mistakes in the Income can be expensive because because of these errors, more than usual, there are many Spaniards who end up paying more than they should.

A survey conducted by Taxfix -an international platform that allows you to make the declaration online quickly and easily- corroborates that 81% of Spaniards declare their taxes even if it is not mandatory, either to avoid possible fines (36%) or for the possibility of a refund (45%).

Despite this commitment to the Treasury, 31% of citizens dislike the complexity of the process. Another 29% say they feel uninformed. These figures support the existence of Taxfix, an app that with transparency and through a simple process, seeks to help people manage their taxes and optimize the result of their income tax return. To do this, it has tax experts who guide the user throughout the process, providing personalized assistance and helping to improve the tax result, taking into account more than 200 possible deductions.

Its tax experts facilitate the sometimes arduous task of writing the Income and, for this, they answer all the client's questions and do so before, during and after the process. Thus, there will be no forgetfulness to pay for or mistakes to cry later.

Keys to making a perfect income statement

Going beyond the draft initially proposed by the Treasury can be complex, since many of the questions that appear are not easy to interpret and some scenarios are difficult to define. Therefore, filing your own tax return can be a stressful time... and not very well executed.

The best? Have the knowledge and support of experts that make us not fall, unintentionally, into this (usual) set of malpractices. Read carefully and don't fall into their traps this year. These are the steps you should check before delivering your rental.

1. To make or not to make the declaration as a couple? Taxfix experts recall that "de facto couples cannot opt for joint taxation. Even so, if they have children, one parent can include their descendants, while the other partner pays taxes individually." However, the experts of the platform remember that, in the case of de facto couples, some autonomous communities have deductions that can be included in the Income.

On the other hand, married couples can make the joint declaration with non-independent children or disabled adults. However, this option is not always the best. "The truth is that it is only advantageous when one of the members of the couple obtains an income of less than 8,000 euros," they add from Taxfix that, from this 2023, also provides support for joint statements.

2. Where is your tax domicile? It is important to know the regional deductions of each autonomous community. There could be deductions that are not being taken into account.

For example, there are grants for the purchase of electric vehicles for personal mobility in the Valencian Community, La Rioja and Castilla y León, tax deductions to encourage work in Galicia and Asturias and special deductions for Ceuta and Melilla. Knowing the deductions that apply in our autonomy of residence can lead to great savings in our tax result.

3. If you work outside of Spain, certain deductions may apply. "There is a tax benefit known as exemption from 7p, which consists of not taxing up to 60,100 euros of the income you have received working abroad if certain requirements are met," explains Ana Crespo, tax expert at Taxfix. And this includes that the taxpayer is considered a tax resident in Spain or that the work is physically carried out abroad. Of course, if the 60,100 euros of income is exceeded, it must be included in the declaration. The Treasury, in Spain, will not have the information of this salary, but there is an exchange of information between countries. The best thing here is to review, together with tax experts such as those of Taxfix, this income abroad to avoid future notifications from the Treasury.

4. If you have made renovations at home to be more sustainable, there is a prize! "Investing in transforming a home into a sustainable home is usually rewarded in the income statement," says Crespo.

Here each community establishes its requirements and, at the national level, the government has a decree law to promote the activity of building rehabilitation. Among the most popular deductions are the installation of solar panels or other renewable energies in homes.

5. If deductions have been applied or expenses have been deducted, it is necessary to justify them adequately before a possible revision of the declaration. It is important to keep all the documentation that proves the expenses and deductions made.

6. Although the last day to file the return is June 30, if the result requires paying the Treasury, the last day to settle accounts normally through your bank account is June 27. From that date, a more difficult process is required. Therefore, it is a mistake to wait until the last day.

7. Donations to an NGO or Foundation are deductible, as well as donations to non-profit political parties, the State, local entities, public universities, etc. The list is long and you have to make sure well.

8. Do not file the income tax return because you are not obliged to not reach the income limit. This is a very common blunder, but from Taxfix they say that "it is always important to check the estimated result, you may be leaving money on the table!".

9. All owned dwellings must be included, as empty dwellings are taxed; that is, those that are neither rented nor are the main residence.

These and other keys can be discovered on the Taxfix platform so that the Income Tax return is no longer a complex process.

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