Form 151: Who has to file it?Jorge Mariñas Berenguer
When we start to carry out commercial activities when travelling to a foreign country, we must be very aware of our tax obligations so as not to cause us future problems. The case of form 151 is one of those procedures that you must carry out with the Spanish Tax Agency if you are receiving income in this country.
Do you want to know all about form 151? We explain it to you below!
What is form 151?
Form 151 is a tax form for declaring Spanish personal income tax in the case of people who have a special regime for being posted for work-related reasons. In the case of personal income tax withholdings for Spanish residents, this is a variable percentage depending on the level of income received, so form 151 does not apply.
However, there is the possibility that a foreign person may benefit from this form, having to declare with a fixed tax level, which is 24% (up to €600,000 per year). Therefore, form 151 is merely a means of communication with the Spanish Tax Agency to calculate the sources of income and revenues and to establish a balance of the tax portion.
Who has to file form 151 and requirements
To begin with, Form 151 must be filed by foreign individuals who are under the special regime for work purposes and who therefore benefit from the current Beckham Law.
In addition, there are a series of requirements that you must take into account when filing form 151:
- They must have applied for the application of this special regime by means of form 149. In addition, they must have done so within 6 months of their entry into Spain.
- The employment contract must have been signed before moving to the country since, if the job was found after settling in, form cannot be applied.
- The applicant has not resided in Spain for the last 10 years.
You should be aware that this special regime only lasts for 5 years, i.e. after this period a different tax rate will be applied.
Where and when do I file form 151?
Filing form 151 is a very simple process, as it can all be done online, by accessing the tax agency’s website with your digital certificate.
In addition, in order for form to be applied, it must be filed within the exact deadlines established by the Spanish Tax Agency.
In this case, the return can be filed up to 30 June of the following year, for example, the return for last year 2022 can be filed up to June 2023.
Income included in form 151
You should know that not all income will be obliged to be declared on form. Those that are included are the following:
- Salary obtained from working for a third party.
- Income derived from self-employment.
- Income derived from renting a property.
- Income derived from capital gains.
- Grants, subsidies and benefits.
- Income from dividends, insurance premiums…
Filing form without errors
Although it is a simple process, there are different requirements and details that must be correctly justified when applying for form 151.
Therefore, the best option is to rely on the advice of professionals to help you process all the necessary documents and processes.
Do you want to get your form 151? Contact us!