Income tax return
Simple guide for young people: taking the stress out of filing your tax return!
Is this your first time filing an income tax return? Don't worry! It's normal to feel a little lost at first. This guide offers clear and simple information to help you understand the most important concepts and the steps to follow. Forget endless paperwork and impossible figures, we'll make it easy!
What is the Income Tax Return and why do I have to file one?
Think of it as an annual summary of your finances that you share with the Tax Agency. You tell them how much money you earned (your income) and how much you spent on certain things (your deductible expenses) during the previous year. With that information, the Tax Agency whether you owe money or are due a refund:
Pay an amount:
If you earned a lot or didn't pay enough tax during the year.Pay an amount:
If you've paid more tax than you should have or you're entitled to significant deductions.Everything balances out to zero:
You neither pay nor get a refund.Why do you have to do it? Because it's a legal obligation if you meet certain requirements. Also, you might end up getting a refund, which is always a joy!
Do I need to file a tax return? (key requirements)
This is probably the first big question. Not all young people are required to file a tax return. It all depends on how much you've earned and where that money comes from. Here are the most common cases that DO require filing (referring to 2024 income, which is declared in 2025):
- If you only have one job: you are required to file a return if your gross income exceeds €22,000 per year.
- If you have two or more employers (multiple jobs or unemployment benefit and one job, etc.):
- You are required to file a return if your gross income exceeds €15,000 per year and the second and subsequent payers (combined) exceed €1,500 per year.
- If the second and subsequent payers DO NOT exceed €1,500, then the limit remains €22,000.
- If you receive other income:
- More than €1,600 per year of investment income (interest on accounts, dividends, etc.) and capital gains (sales of shares, funds, etc.).
- More than€1,000 per year of imputed real estate income (for having empty properties at your disposal), returns on treasury bills, subsidies to acquire government-subsidised housing, etc.
- Self-employed workers: you almost always have to file a return in this case, even if you have only a small amount of income.
IMPORTANT: even if you are not required to, you should ALWAYS check. Very often, if you have had personal income tax withheld from your salary or if you have made an investment, you may get a refund, and it's your money!
What do I need to get started? (documents and accesses)
Before you head to your computer to file your tax return, it's best to have everything ready to avoid any surprises or inconveniences. Here's a list of what you need to have on hand:
Your personal details:
Content Your personal details:References to tax returns from previous years:
Content References to tax returns from previous years:Bank details:
Content Bank details:Tax information:
Content Tax information:- Certificado de retenciones (tax certificate): Your company or companies should provide you with this certificate stating the income you received and the personal income tax you paid.
- Bank certificates: If you have accounts, deposits or investments, you'll receive an annual summary of your interest or earnings.
- Property information: If you own a house, apartment or other property, you'll need information.
- Receipts for deductible expenses: If you pay rent, a mortgage, donations, union dues, educational expenses, pension plans, etc. (always keep the receipts).
Access to the draft and submission: Renta Web is your best friend!
Filing your tax return may seem complicated, but the Tax Agency makes it quite easy with an online tool: Renta Web. It's like a virtual assistant that guides you step by step.
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Access to Renta Web:
- Search Google for “Renta Web Agencia Tributaria” and click on the official link.
- You will need to identify yourself. The most common options are:
- Cl@ve PIN: this is an identification system with a username and password plus a PIN that you receive on your mobile phone. If you don't have one, I recommend you register; it's very useful.
- Digital certificate: if you already have it installed in your browser.
- Reference number: if you filed your tax return last year, you can find it in box 505 of the return.
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What is the draft?
- Once you access Renta Web, you'll find your "draft" income tax return. This draft is a proposal that the Tax Agency has already filled out with the details it has about you (your income, tax already paid, etc.).
- VERY IMPORTANT! Don't trust your draft 100%. It may be missing important information (e.g. autonomous community deductions, donations, or if you have multiple jobs and the Tax Agency doesn't have all the information cross-referenced correctly).
- Check each section carefully. Make sure the income from your jobs is correct and that the tax paid matches your certificate. Check for any deductions you can add.
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What are deductions?
- These are "discounts" that the Tax Agency applies on what you owe (or adds to your refund).
- There are national and regional discounts. The regional deductions are very important for young people!
- Common deductions for young people:
- Rent for the primary residence: if you rent and meet certain age and income requirements.
- Donations: if you have made any donations to NGOs or foundations.
- Educational expenses: in some autonomous communities, for childcare expenses, school supplies, language classes, etc.
- Pension plans: if you have contributed to a private pension plan.
- Maternity / Large Family: if applicable.
- Tip! Search Google for "regional income tax deductions [your autonomous community]". Each region has its own tax breaks that you can take advantage of.
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And then what do I do?
- Review the whole draft carefully. Check that your company details, bank details and any income or expense information are correct.
- All good? Click “Confirm” and that's it.
- Is there anything that needs to be corrected or added? Click “Modify return” and follow the steps indicated. The system is quite intuitive.
- Renta Web will tell you whether the result is to pay or whether you are owed a refund.
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Submitting your return:
- Once you're sure everything is correct, click "Submit return".
- If you are due a refund, the money will be credited to your account within a few days or weeks.
- If a payment is due, you can set up a direct debit or pay in two instalments.
Common mistakes to avoid. (And how not to get it wrong!)
- Not reviewing the draft: this is the most common mistake! Never confirm it without thoroughly reviewing it.
- Forgetting regional deductions: this is where many young people lose money. Research the ones you're eligible for in your autonomous community.
- Not declaring everyone who's paid you: if you've had multiple jobs or received unemployment benefits, make sure all the details are included.
- Not keeping receipts: for any deduction or information you declare, have the receipt or certificate on hand in case the tax agency asks for it.
- Leaving to the last minute: the Tax Agency website might crash. Do it well in advance.
Key dates (2024 Income Tax Campaign - to be declared in 2025)
Make a careful note of this because it's very important to file your Tax Return on time. The dates may vary slightly but they typically follow this order:
- Early April: start of the campaign to file online.
- Late April/Early May: telephone filing begins, but you need to make an appointment.
- Late May/Early June: start of in-person filing, also by appointment.
- Late June: last day to submit your return if you are paying by direct debit.
- Late June: deadline to request an appointment.
- 1 July: End of the campaign! After this date, your tax return will be considered late (and you may be fined if you were required to file).
Do I need an accountant?
For your first income tax return, if your situation is simple (just a job, without a lot of unusual investments), you can probably do it yourself with this guide and support from Renta Web.
However, if you have doubts, multiple sources of income, properties, if you are self-employed or if simply prefer peace of mind, it's a good idea to hire an accountant. They'll take care of everything and make sure you take advantage of every deduction possible.
Don't worry! With a little attention, your tax return will cease to be a paperwork headache and become just another part of your adult life. And remember, if it turns out you're due a refund, it will be a small reward for your effort!