To which my response is always “Nooooo!” and jump off a building. Well, PADRE 2014 is out and you can do your taxes in 63 steps. The easiest way to do your taxes is to first log onto the Agencia Tributaria website, log into the Renta 2014 website and generate the “borrador” (draft), which has all the information that the Spanish tax authorities had submitted to them.
Then download PADRE 2014 and install it on your computer. When you start your declaration you have the option to have it download all your information and automatically fill in the relevant information. The document you previously downloaded has a code on it that you can use to download the information that the Spanish tax authorities have on you.
For expats, the sucky thing about this program is that it doesn’t make it easy to declare income from outside Spain.
At this point, you throw up your hands in disgust and make an appointment (as of May 6th) and have them do it for you.
In case you still want to plow on, here’s how income from investments is treated in Spain:
|Mutual fund||Dividends of funds are NOT taxed if they are reinvested||GP (Sale-Cost)|
|Shares of companies||Dividends: RCM||GP (Sale-Cost)|
RCM = Rendimiento del capital mobiliario
GP = Ganancia patrimonial
The standard retention is 20% in Spain. Short term capital gains are integrated in your general income in 2014, which means that they can be taxed double what plain old interest would be.
If your investment already has a foreign retention, then you can include that in the retention it up to whatever the maximum you are paying in Spain. Some countries like Switzerland allow you have zero retention if you waive bank secrecy, which makes your taxes easier to figure out.