Income Tax Return

This is the twenty-second year that we at Global Accounting are helping Swedes declare their income in Spain and Sweden. If you are a resident in Spain, you must declare all your income worldwide for the 2020 tax year. The Spanish tax return is submitted during the period May-June 2021.

To assist you with the tax return, we need information about pensions, stock dividends, securities transactions, interest income, salary income, board fees, and any other income. We also need to know which bank account you want any refunded tax, paid in Sweden, to be deposited into, and from which bank account in Spain the Spanish tax should be deducted. It’s important to remember that you no longer receive income statements from Sweden; instead, you must retrieve these statements yourself and forward them to us. You can find income statements on the payers’ websites. Certain expenses can be deducted from income. These deductions mainly concern costs for dependent children, dependent retired parents, family member’s disability, interest and amortization on housing under certain conditions, and paid rent, also under certain conditions. Spouses are free to decide whether they want to be taxed separately or jointly.

If you owe additional tax, either 100% of the remaining tax must be paid by June 30th, or 60% by June 30th and the remaining 40% by November 7th. You can decide which of these two payment options you prefer. For those who have received Swedish pension that has been SINK-taxed, we assist with the application for refund of double-paid tax.

For those declaring for the first time as a resident in Spain, a digital signature is required. Contact us, and we will order it for you.

If you need assistance with your Swedish tax return, we are also at your service. If you would like help from us at Global Accounting, you can email documentation or schedule a meeting. Preferably by April 30th at the latest.

Form 714

It is time to declare your assets, both inside and outside Spain, as of December 31, 2020. If you are a tax resident in Spain, the wealth declaration should be made during the period from May 1st to June 30th, 2021 on form 714.

The declaration is made individually, which means that spouses have separate taxation and are taxed for their own part. It is important to note that you have a tax-free allowance of 1 million euros and only assets exceeding 1 million euros should be declared (divided into 300,000 euros in housing and 700,000 euros in assets).

You are welcome to send all documentation to us via email or visit our office so we can prepare the wealth tax return in good time.

Form 720

It is time to submit form 720, which is information about the assets you have outside Spain that exceed 50,000 euros. The information refers to the situation as of December 31, 2020, and must be presented to the Spanish Tax Agency no later than March 31, 2021. Assets abroad are divided into three areas: liquid assets (bank funds), securities, and real estate that you owned as of December 31, 2020. If any of these three groups individually exceeds 50,000 euros, there is an obligation to declare the asset.

For example, if you have 20,000 euros in cash at SEB and stocks in Sweden worth 35,000 euros, you don’t need to present this form. However, the form should be presented if you have, for example, 30,000 euros in cash at SEB and 30,000 euros in cash at Swedbank. The value to be reported in the form is the market value of the assets.

If you have previously submitted form 720 to the Spanish Tax Agency, you only need to declare again if the total value of your assets in any of the three groups has increased by at least 20,000 euros. If you have disposed of any asset, you should also provide this information through form 720, even if you have done so before.

Form 720 has led to major discussions due to its overwhelming and disproportionate sanctions for failure to submit and late presentation of the form. The European Commission has, because of this, sued Spain in the EU Court of Justice as they consider the sanctions to be discriminatory and disproportionate. Until the matter is resolved, form 720 remains in effect.

We at Global Accounting can compile and present the information form to the Spanish Tax Agency on your behalf. For us to do this, we need to have all documentation regarding your assets by March 10th at the latest.

You are welcome to contact us via email, phone, or visit our office.