Tax alert! The alarm bells are ringing. The final days to file your income tax return in Spain are approaching, and if you haven’t filed it yet, this article is your best ally to get up to speed without the hassle. We are covering everything: from what the tax return is, why it exists, who has to do it, to practical tips to avoid last-minute mistakes.
The calendar seems to mock you, with its red pages marking the end of June. You feel that slight pressure in your chest, that cold sweat reminiscent of university finals you hadn’t studied for. Yes, my friend, we’re talking about that annual event that rivals company Christmas dinners in popularity: the tax return season.
If you’re reading this, you probably belong to one of two groups: the proactive one who has already filed and is just looking to bask in his efficiency, or the more common “procrastinator” —the ones who know they need to file but have just been a bit… busy. You know, managing teams, closing million-dollar deals, building the next unicorn startup or simply surviving the corporate jungle.
You’re in the right place. As experts in helping professionals optimize their lives—not just through great workspaces but also with time-saving, stress-reducing solutions— we have created this survival guide. We will demystify the tax return process in plain language, so you can comply with the Spanish Tax Agency and get back to what really matters: growing your business.
But what the hell is a tax return —and why should I care?
Think of it this way: throughout the year, your company (or your clients, if you’re a freelancer) has been setting aside a small portion of your income into a piggy bank for “Uncle Tax”. This portion is called IRPF (Impuesto sobre la Renta de las Personas Físicas – Personal Income Tax). It’s essentially an advance payment on the taxes you’ll owe based on the income you’ve earned.
The income tax return is, quite simply, the moment to settle your accounts with the tax authorities. It’s like opening that piggy bank at the end of the year and checking:
If you’re due a refund:
Congratulations! That means you’ve put more money into the piggy bank than necessary over the year. The tax office will refund you the difference. It’s like finding a €20 note in the pocket of an old pair of jeans.
If you have to pay:
It means you came up short and need to cover the difference. It’s not a party, but it’s an obligation. It’s not exactly a celebration, but it’s part of your civic duty. Think of it like getting the check after a great meal—your annual income was the feast, and now it’s time to settle the bill.
The aim is to settle the accounts based not only on what you have earned, but also on your personal and family circumstances (children, mortgages, donations…), which may entitle you to certain tax reliefs called deductions.
The “club of the obliged”: am I in?
Why is it compulsory and who has to file it?
Not everyone is required to file a tax return, but the exceptions are few and far between.
Generally, you are obliged to file if:
Your earned income exceeds €22,000 gross per year from a single payer.
You have two or more payers (very common among professionals who change jobs mid-year or juggle multiple roles) and the income from the second and subsequent payers exceeds €1,500. In this case, the total limit drops to €15,000 gross per year.
You are self-employed or entrepreneur, the income tax return is your annual appointment regardless of the amount (yes, even if you only earn €1,000).
You have obtained income from investment returns (interest on accounts, dividends…) or capital gains (sale of a property, shares…) exceeding €1,600 in a year.
In short, if you are an active professional, you are most likely to be in the boat.
You are exempt if…
You have earned less than 22,000€ per year from a single payer and have no other significant sources of income.
You have not had withholdings or you are in very specific situations (such as exempt grants or specific public aid).
⚠️ But be careful: even if you are not obliged to do so, it might still be in your best interest—because sometimes the tax office owes you money! And if you don’t file it, you won’t get it back.
The final sprint: key dates and the consequences of oversleeping
When is the deadline for filing the 2025 income tax return?
The income tax campaign usually begins in April and ends, inexorably, on 30 June. That is the deadline for filing your tax return online. If the result is a deposit and you want to pay by direct debit, the deadline is usually a few days earlier, so be careful!
💡 Pro tip: If the result is payable and you pay by direct debit, you have until 26 June to submit it. After that date you can only pay by NRC (Complete Reference Number) at the bank or direct payment.
What if I miss the deadline? Spoiler: you don’t want to know
Filing your tax return after the deadline is not the end of the world, but it is the beginning of a series of surcharges and possible penalties that your pocket won’t thank you for.
Missing the deadline is never a good idea. Penalties can include:
A fine of €100 to €400 if you file late voluntarily (that is, without being summoned).
Between 50% to 150% of the unpaid tax, if the tax authorities require you to do so and detect that the delay is intentional.
A surcharges of 1% per month on late payments.
If you got a refund: the tax authorities have up to 5 years to claim it back from you and, although you will get your money back, they may apply a small penalty for late filing.
Practical guide for procrastinators: how to file your tax return in record time
OK, time is short. We need a plan of action. Zero distractions, maximum efficiency.
Step 1: Mission “Gather Documentation”.
Before you sit down in front of the computer, gather your arsenal. You will need:
Your ID card and hose of any dependants who count.
Your IBAN number.
The famous reference number, or to be registered in the Cl@ve PIN or Digital Certificate system to access your tax data.
Certificates of withholdings from your company.
Proof of donations to NGOs.
Rent receipts (if you live in rented accommodation and are entitled to deductions).
Details of your mortgage (if you have one and it is deductible).
Any other document that justifies a possible deduction (dues to trade unions, professional associations, legal defence expenses, etc.).
Step 2: access your “draft” on renta web
The Tax Agency makes it easy for you with Renta WEB. It is an online platform where you will find a draft of your income tax return with most of your details already loaded. But be careful! “Draft” does not mean “perfect”. It is your responsibility to review it, correct it and, above all, add all the deductions to which you are entitled and which are not known to the Tax Authorities.
👉 Tip: Check it yourself or with an advisor before sending it in.
Step 3: Hunting for deductions! The art of paying the right amount
This is the step that differentiates a correct return from an optimal return. This is where you can save money in a totally legal way. Some of the most common deductions are:
For renting your primary residence: Depends on your autonomous community and your income.
For investment in primary residence: Only for mortgages signed before 2013.
For donations: You can deduct a very interesting percentage of what you donate to NGOs.
For contributions to pension plans: One of the best known ways to reduce your tax bill.
Contributions to trade unions and professional associations: If they are compulsory for practising your profession, they are deductible.
👉 Tip: Make a checklist of deductions according to your personal case.
For the self-employed: A whole new world opens up here. Expenses for equipment, software, marketing, administration, and yes, even renting a workspace.
👉 Tip: Keep an up-to-date record of your invoices and include everything.
Environment is everything: how the right workspace makes even filing your tax returns easier
At this point, with a mountain of paperwork and the tax office website open, you realise a universal truth: chaos calls for chaos. Trying to concentrate on a task as delicate as filing your tax return in an unsuitable environment is a recipe for disaster. The dog barks, the kids clamour for your attention, the internet connection fails at the worst possible moment…
This is exactly where a professional workspace makes all the difference. And that is precisely what we at Ibercenter offer.
Think about it. For a professional like a Corporate Executive, whose time is precious, the idea of wasting an entire afternoon dealing with paperwork at home is a huge opportunity cost. Efficiency and privacy are paramount. That’s why his company chose Ibercenter—to have a prestigious registered office in Azca, Gran Vía, or Velázquez—so its executives can focus on business, not logistics. Office management, high-speed internet, security… everything is taken care of. This same principle of efficiency applies to critical personal tasks such as managing your taxes.
For a Creative Entrepreneur and Digital Nomad, the situation is even clearer. As a freelancer, many of your expenses are deductible. And do you know what is a 100% deductible and justified expense for your activity? The rent of your workspace.
Imagine this: instead of struggling with your tax return at the kitchen table, you book one of our private offices for a day at Ibercenter Gran Vía. You arrive, connect to our high-speed Wi-Fi, pour yourself a coffee from our kitchen and immerse yourself in your numbers in absolute silence and a professional atmosphere. No interruptions. When you’re done, not only have you complied with the tax authorities efficiently and error-free, but the cost of renting the office is an expense you can deduct on your next tax return. It’s an investment in your productivity and your financial wellbeing.
At Ibercenter, we understand that flexibility is key. That’s why we offer solutions to suit you, whether you need a permanent office in the financial heart of Madrid, a meeting room to impress a client, or simply a “productivity bunker” for a day to close important tasks. Like your tax return.
Common last-minute mistakes to avoid
In the final rush, it’s easy to stumble. Here’s a list of mistakes to avoid:
Confirming the draft without checking: This is the number one mistake. Hacienda doesn’t always have all your details, especially those that benefit you (deductions).
Incorrect personal details: An unreported change of address can cause problems. Check that everything is in order.
Forgetting the regional deductions: Each region has its own deductions. Check those of Madrid!
Not including all payers: If you had two jobs, make sure that both withholding certificates are reflected.
Leaving it to the last day, at the last minute: The online platforms can become overloaded. Don’t push your luck.
Conclusion: take a deep breath, execute and get back to business.
The tax return season does not have to be a Greek tragedy. It’s simply a process—an obligation—that, with a bit of organisation and the right environment, you can complete quickly and efficiently.
Follow the steps we’ve outlinedfor you: gather your documents, scrutinise the draft with a fine-tooth comb, don’t miss a single deduction you are entitled to and, if you need a haven of concentration to give the final blow, remember that at Ibercenter you have your space.
Once you press the “File Return” button and see the confirmation message, you will feel an immense sense of relief. You will have conquered the final sprint and can dedicate 100% of your energy to your projects, your clients, your company.
And once you’ve got through the tax sprint, why not maintain that level of efficiency and professionalism all year round? Whether you are looking to expand your multinational in the Salamanca neighbourhood, need a private office in Azca for your consultancy or a vibrant environment in Gran Vía for your startup, at Ibercenter we are here to support you — so all you have to worry about is succeeding. Leave the rest to us.
Now, go for it! May the force (and deductions) be with you.
