Income limit for not filing Personal Income Tax (IRPF) with two payers

Determining the obligation to file a Personal Income Tax (IRPF) return is a recurring issue for taxpayers receiving income from various sources. A recent binding ruling from the General Directorate of Taxes (DGT) has clarified the applicable limits when two payers are involved.

What the DGT has ruled

The inquiry focused on determining whether a taxpayer was obliged to file an IRPF return when receiving pensions from different payers, including a benefit from abroad. The DGT has established that, when a taxpayer has two payers, the income limit for not being obliged to file remains at 22,000 euros, provided that the sum of the income from the second payer and any other additional payer does not exceed 1,500 euros per year.

In the specific case analyzed, since the benefit from the second payer was below the 1,500 euro threshold and the total pensions did not exceed 22,000 euros, it is concluded that there is no obligation to file an income tax return pursuant to Law 35/2006 (LIRPF).

What this means for you

This criterion is relevant for individuals receiving income from work or pensions from multiple sources, including those from other European Union Member States. If you are a tax resident in Spain and receive a main pension and a smaller amount from a second payer, you must verify two conditions to not be obliged to file:

• That the total income from all secondary payers does not exceed 1,500 euros per year.
• That the total of all income received does not exceed 22,000 euros per year.

If both requirements are met, the regulations allow for the non-filing of the tax return.

What you should do

It is necessary to maintain rigorous control over the amounts received from each payer during the tax year. In situations of tax residence in Spain with international income, it is fundamental to accurately quantify benefits received abroad to ensure that the thresholds established by the LIRPF are met. Since the interpretation of the limits depends on the exact sum of the amounts, it is recommended to assess each particular situation to avoid errors in complying with tax obligations.