Spain has announced a significant increase in the income threshold for individuals required to file their annual income tax return. Under a new royal decree-law published in the Official State Gazette (BOE) on Tuesday, the total amount of income from secondary and subsequent employers that triggers a filing obligation has been raised from €1,500 to €2,500.

The new regulation, which comes into effect on Wednesday, January 1, 2025, means that taxpayers with annual incomes of up to €22,000 who have multiple employers will no longer be required to file a tax return if the combined income from their secondary or subsequent jobs does not exceed €2,500.

Additional Changes

The decree also includes several other notable changes:

Clarification for Sacred Art Artists: Sacred art artists have been explicitly included in group 861 of the second section of the Tax on Economic Activities rates, providing greater legal certainty regarding the classification of their work.
Extension of Small Business Tax Benefits: The quantitative limits for the application of the objective estimation method for self-employed individuals (excluding agricultural, livestock, and forestry activities) have been extended for another year in 2025. This means that many small businesses will continue to benefit from simplified tax calculations.
VAT Regime Extensions: The limits for the application of the simplified regime and the special regime for agriculture, livestock, and fishing under Value Added Tax (VAT) have also been extended for the 2025 tax period.
These changes are aimed at providing tax relief for individuals and small businesses, simplifying the tax system, and offering greater clarity for specific groups of taxpayers.

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