Date Published: 13/02/2024

Important changes for the self-employed in Spain regarding the 2024 income statement

This year, all autónomos in Spain, regardless of income, will have to submit an annual tax return

It’s nobody’s favourite time of year, but the 2023-2024 personal income tax (Impuesto sobre la Renta de las Personas Físicas, IRPF) campaign is just around the corner, running from April 3 until July 1. Before now, self-employed workers, or autónomos, whose gross income was under a certain threshold were exempt from filing a return but this year the rules have changed and everyone will have to submit an income statement, regardless of how much or how little they make.

New requirements for self-employed workers

According to data from Social Security and the Tax Agency, this change will impact some 200,000 self-employed workers who, until now, were not required to make the declaration. What’s more, the length of time you have been self-employed no longer matters – even if you were only autónomo for a single day, you’ll still need to submit a return to the Treasury.

As usual, the law includes provisions for deductible expenses that can reduce personal income tax liability. Eligible expenses include running costs, VAT on vehicles used for business purposes, supplies for home-based work, as well as professional training or courses.

There will also be changes to the tax burden for self-employed workers based on their income level, meaning that lower-income earners will pay less while those in higher brackets will face an increase.

The zero-fee option, which in some regions exempts newly self-employed people from paying anything, will be extended to Extremadura.

Finally, the flat-rate system will continue, offering a reduction in contributions during the early stages of business activity. This means that self-employed workers can enjoy lower payments during their first year, with the possibility of extension if certain conditions are met.

What happens if you don’t file your tax return?

It hardly needs to be said, but Spain takes fiscal responsibilities seriously. For taxpayers who fail to meet their obligation to file their income tax return within the designated timeframe, the amount of the penalty will depend on the outcome of their tax declaration.

If the taxpayer is due a refund, they will be subject to a fine of up to 200 euros.
On the other hand, if the taxpayer owes taxes, they will be required to pay an additional amount ranging from 50% to 150% of the debt, depending on whether the failure to pay is deemed to be due to economic hardship or intentional avoidance on the part of the taxpayer.

Image: Freepik

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