If you live in Spain and you often ask yourself what happens if i do not file a tax return?, The first thing to clarify is that the consequences vary depending on whether you were obliged to file or not.
Understanding this in time is a very concrete way of nurturing your stability in Europe and sustaining your future calmly, without scares or unnecessary uncertainty.
Because in Curiara we believe that to migrate is not to disappear; is to be otherwise, but always with dignity and responsibility. That is why this article aims to give you clarity, choices and prevention habits, so that don't have any problems when it comes to making the tax return.
First of all: confirm if you are obliged to do it.
The Tax Agency explains the delimitation of the obligation to declare personal income tax and makes clear that the obligation depends on the income earned and on certain limits and conditions.
If you are not sure, the AEAT itself offers tools to help you find your way around, such as the virtual income assistant, where you can consult all your doubts before starting the procedure.
One point is particularly important if you are self-employed and working on your own account. The AEAT indicates that, from 1 January 2023, are in any case obliged to declare persons who at any time during the tax period have been registered as self-employed in the RETA.
If you are a migrant and you want to realise all of these procedures with a guide designed for day-to-day use, in our blog you have the article on tax obligations as a migrant, that helps you to put everything in order inside your head without feeling that the bureaucracy is eating you up.
What can happen if you do not file your tax return?
What happens when you do not file your tax return usually depends on whether the result is “payable” or “refundable” and whether or not the tax authorities take action.
What is certain is that the system clearly distinguishes between late filings without prior request and situations where there is already a formal action by the tax authorities:
- When you present out of time without a prior request from the tax authorities, the regulations provide for surcharges for late filing without a prior request, regulated in article 27 of Law 58/2003, General Tax Law.
- In addition, the AEAT has a specific procedure for the settlement of late filing surcharges.
- On the other hand, if a requirement already exists or a formal administrative action, the response must be more careful and it can vary. In such a scenario, if you are inexperienced, it is wise to seek professional guidance to respond well and in a timely manner.
Submitting late without a requirement
Article 27 of the Ley General Tributaria (General Tax Law) regulates the surcharges applicable when you file after the deadline “without prior request”. The Tax Agency itself, in its explanation of applicable surcharges, states that in these cases the surcharge is a percentage equal to 1% plus an additional 1% for each full month of delay.
The General Tax Law also states that, after 12 months from the expiry of the deadline, the surcharge becomes 15% and interest for late payment is due from the day after 12 months.
What is a preliminary injunction?
The «requerimiento previo», as stipulated in the General Tax Law, is any administrative action that is carried out with formal knowledge of the person obliged to declare income and which leads to the recognition, regularisation, verification, inspection, assurance or settlement of a debt.
We mention this not to scare you, but to make you understand the issue. In such cases, procrastination should not be a feasible option. If you suspect that you were obliged and missed the deadline, prioritise regularisation as soon as possible if you do not want to have further problems.
If you are building your life and want to have some stability in Spain, you need more practical context (knowing all the procedures, resources, etc.), so you may find it useful to read this article on the migrants in Spain: support to build stability.
What to do if you have missed the deadline
If you think you were obliged to do so and did not file your tax return, try not to panic: the useful thing to do is to move quickly.
The legal framework for late submissions without a prior request is in the article 27 of Law 58/2003 (BOE). And the AEAT explains the procedure for settlement of late filing surcharges.
Here are two points to help you find your way around:
- If there has been no prior injunction, you are in the Article 27 surcharge scenario.
- If formal action is already in place, it is advisable to respond accurately and, if you do not master the process, to seek professional support.
Silent risks of not filing a tax return: the emotional cost and uncertainty
When you migrate, you already have enough decisions on your shoulders: getting a job, arranging papers, finding a rent, having your family far away, adapting to the timetable, etc.
Therefore, one of the biggest risks of not filing a tax return is not only financial; it is also the uncertainty, that feeling of being thinking that at any time something may happen and you won't be ready for it..
This mental burden is especially noticeable if you are supporting your family's expenses in your home country, as you have to take care of your life in Europe and continue to support your family. At Curiara, we talk about supporting from afar because we know that the daily responsibility is not always seen, but it is something that weighs heavily.
Prevention, here, does not mean living in fear, but rather building a solid foundation. It is the same logic you apply when reviewing your monthly budget or planning a major shipment: have clarity to take care of your future.
7 habits to prevent risks (and gain peace of mind)
These habits we suggest below greatly reduce the likelihood of mistakes, so keep them in mind:
- Confirm whether you are obliged to file appeals with the AEAT on whether you you are obliged to file a tax return PERSONAL INCOME TAX.
- If you have been autonomous at some point during the year, recalls the speciality indicated by the AEAT: obligation “in any case”.
- Create a annual folder (digital or physical) with your basic documents; it saves you time and last minute decisions.
- Set aside a fixed time to review your draft and data.
- If your situation is complex (changes of country, several payers, self-employed, different incomes), consult a professional; a consultancy can always help you in a very satisfactory way.
- Put aside an amount of money to act as a safety cushion.d for possible payments.
If you live between two countries: be careful not to mix up concepts
Many migrants live with their heads and hearts in two places at once: you work here, you build your routine here, but your family, your responsibilities and some of your concerns remain “over there”.
That's why, when life works like this, it is very easy for tax concepts to get mixed up and you end up making decisions in haste., or out of tiredness, or because of what you heard in a WhatsApp group.
A typical example: confusing legal residence, i.e. your administrative status as a foreigner, with your tax residence, where the tax authorities understand that you must pay tax.
The Inland Revenue explains that a natural person is considered to be tax resident in Spain, for example, if you stay more than 183 days during the calendar year or if the main nucleus or the basis of their activities or economic interests is located here. It also provides for a presumption linked to the spouse and minor children habitually resident in Spain.
Therefore, the recommendation is not that you learn everything, but something more humane and more useful: when in doubt, rely on official sources before making a decision. The AEAT has resources designed precisely to provide guidance in general cases, such as its information on the obligation to file personal income tax returns and its practical manuals.
And if your situation is out of the ordinary (e.g. you have lived in more than one country in the same year, you have income from several places or you are self-employed), a professional consultation you should not consider it a luxury, since it is often is the quickest way to avoid future problems.
Taking care of your future is also taking care of how you support your family.
At Curiara we always repeat the same idea: every daily gesture you make here supports something bigger in the distance. Doing your tax return, When it's your turn, it's one of those gestures that you may not appreciate, but it's one of those gestures that you don't. sustaining your stability in Europe. This affects your peace of mind, your planning and your ability to be present for your loved ones.
If in addition you send money to your loved ones, your financial life has dual responsibilityhere and there. That's why it pays to choose tools that give you clarity. If you want to compare app options for sending money to your family, you can read the benefits of using Curiara vs. the competence.
As you know, to migrate is not to be absent, It is an emotional bond that extends to another country to care for your loved ones from afar.
In short, the most important thing when filing your tax return is to confirm whether you are obliged to do so. If you missed the deadline, remember to act as soon as possible with the official information well learned and a lot of calm. Because looking after your future in Europe is also a way of looking after the future of your loved ones, even if they are far away.