Spain's annual personal income tax campaign for fiscal year 2023 — which ran from 3 April to 1 July 2024 — brought a set of changes that affected property owners, energy-efficient renovation investors, individual savers and business partners alike. Understanding the specific modifications and their effect on your tax return allows you not only to comply correctly with the Tax Agency (AEAT) but also to identify deductions and reductions you are entitled to that the AEAT's draft return may not reflect automatically.
Filing Calendar and Key Deadlines
The 2023 campaign calendar (filed in 2024) was structured as follows:
- 3 April 2024: Filing window opens; draft returns available in Renta WEB online platform.
- 29 April 2024: Start of telephone filing appointments (Plan Le Llamamos service).
- 7 May 2024: Start of in-person filing at AEAT offices.
- 26 June 2024: Deadline for returns with a tax payable result submitted with direct debit instructions.
- 1 July 2024: Final deadline for all returns.
Taxpayers with a tax payable result may split the payment: 60% on filing and the remaining 40% by 5 November 2024, without interest accruing on the deferred amount.
Key Tax Changes for Fiscal Year 2023
Pension plan contribution limits. The 2021 reform reduced the annual deduction limit for contributions to individual pension plans to €1,500. This lower threshold remained in force for 2023. However, contributions made by the employer to occupational pension plans can increase the deductible ceiling by an additional €8,500, provided the overall limit of €10,000 is not exceeded.
Energy efficiency improvement deductions. Introduced by Royal Decree-Law 19/2021 and applicable throughout 2023, three deduction tiers apply to energy renovation works on residential properties:
- 20% on a base of up to €5,000 if works reduce heating and cooling demand by at least 7%.
- 40% on up to €7,500 if works reduce non-renewable primary energy consumption by at least 30% or improve the energy certificate rating to A or B.
- 60% on up to €5,000 per year (with a cumulative base of €15,000) for comprehensive energy rehabilitation of entire residential buildings.
Rental income reduction restructured. The Housing Act (Ley 12/2023, in force from 26 May 2023) restructured the reduction applicable to net income from residential lettings. The general 60% reduction was maintained for contracts signed before that date, but new contracts may qualify for enhanced reductions of 90%, 70%, 60% or 50% depending on factors such as whether the property is in a stressed rental market area, the tenant’s age bracket, or whether the landlord has agreed to a rent reduction.
Savings tax rates. The savings rate schedule for 2023 is: 19% on the first €6,000, 21% on €6,001 to €50,000, 23% on €50,001 to €200,000, and 26% on savings income exceeding €200,000. This top 26% tier, introduced in the 2021 budget, remained in force for 2023.
What to Check in the AEAT Draft Return
The AEAT draft return is generated by cross-referencing data reported by employers, banks, investment fund managers and public bodies. However, it routinely contains gaps that the taxpayer must complete manually:
Self-employment income. Self-employed taxpayers using the direct assessment method (estimación directa) must verify that the accounting result carried over to the draft is correct, particularly where there are deductible expenses not automatically reported to the AEAT — vehicle expenses, home office utilities, depreciation.
Capital gains and losses. The AEAT incorporates securities and investment fund disposals reported by custodians, but it does not always hold the correct acquisition value for assets received by inheritance or donation, or shares acquired before mandatory reporting requirements existed. Each transaction’s acquisition cost and disposal value must be individually verified.
Imputed real estate income. Real properties owned but not let and not used as the main home generate imputed income of 1.1% of the cadastral value (or 2% if the value has not been revised in the last ten years). The AEAT cross-checks with the cadastre, but properties acquired during 2023 may not be correctly reflected.
Regional deductions. Spain’s Autonomous Communities regulate a portion of personal income tax and offer their own deductions — for the birth of children, acquisition of a main home, young tenants, care of dependants — that the draft return does not always capture automatically. Taxpayers must consult the regional rules applicable in their community of residence.
Specific Issues for Shareholders and Company Directors
For shareholders and directors receiving remuneration from their own companies, the 2023 return requires a cross-referencing exercise:
- Form 190 reconciliation. The employment income declared by the company in its annual withholdings return (Form 190) must match the employment income declared by the shareholder or director in their personal return.
- Dividends. Dividends received are taxed in the savings base as capital income. They must be cross-checked against Form 193 (dividends) filed by the paying company.
- Shareholder loans. The AEAT has intensified scrutiny of loans from companies to their shareholders. Where interest has not been charged at the legal rate (3.75% in 2023), a notional capital income element may be imputed to the borrowing shareholder.
Recommendations to Optimise Your Return
Do not accept the draft without reviewing it. The AEAT draft is a starting point built from third-party data — not a validated final document. Accepting it without review means potentially forfeiting legitimate deductions and accepting the risk of incorporating errors you will later need to correct.
Gather all supporting documentation before 1 July. Collect invoices, receipts and evidence for all deductions you are entitled to: energy renovation works, charitable donations, pension plan contributions, self-employment expenses.
Verify the bank account for refunds. An incorrect IBAN on a return with a tax to be refunded can delay the refund by several months.
Apply carryforward capital losses. Capital losses from the four preceding years (2019–2022) that have not yet been offset may reduce 2023 capital gains. Many taxpayers overlook this mechanism when they do not have the historical figures readily available.
At BMC our specialist tax team provides a comprehensive review of your personal tax position before filing, identifying frequently overlooked deductions and eliminating the risk of subsequent assessments. See our tax services.
