April 23, 2021

How the coronavirus will affect the income tax return




The coronavirus pandemic It has changed our day to day completely. The virus has not only generated an alarming health crisis throughout the world, but has significantly affected the economy of a large number of people in our country. In fact, the months of strict confinement decreed during the first state of alarm completely paralyzed the Spanish economy, which is unable to recover because health measures prevent, to a large extent, that it can surrender as it was before the expansion of the SARS-CoV-2.

Therefore, in 2021 it will be necessary to check if the health and social measures decreed by the central Executive have been able to affect the taxpayer’s taxation. Already last November, the Registry of Tax Advisory Economists (REAF) drew up a series of recommendations that should be taken into account when it comes to declare personal income tax this year:

Staying in Spain during confinement

Surely many people who do not usually pay taxes in Spain stayed for a long period living in our country due to the strict confinement decreed on March 13, 2020.

The Tax agency determines that any person who stays in Spain for more than half a year, that is, 183 days, has tax residence in the country. In this way, from REAF they assure that «every day that he had to stay in Spain due to the restrictions on mobility established by the state of alarm, they compute to determine if a citizen has tax residence in Spain and, therefore, is IRPF taxpayer».


The telecommuting has experienced a boom in Spain as a result of the coronavirus pandemic. Many companies have chosen to send their workers home so that economic activity is not stopped and, today, there are many others who prefer to keep it.

Teleworking makes it possible to live in a different municipality than the one where the company is located. However, for tax purposes, the taxpayer is considered to be a resident of the autonomous community in which they have stayed the most days during the year. Furthermore, as the REAF asserts, “the changes of residence whose main objective is to achieve less effective taxation ”.

On the other hand, in some cases, companies provide their employees with computers, mobile phones, various electronic devices, chairs or the payment of amounts to compensate for expenses. It is convenient to agree with the company how these materials should be treated, because if they are used for private purposes by the worker, they will be considered compensation in kind.


Many workers have been affected throughout 2020 by a File of Temporary Regulation of Employment (ERTE), so it is possible that many taxpayers have to file the income statement for the first time or do it differently, because in this exercise, instead of a single payer, there will be at least two, the company and the SEPE.

People who have entered in the last fiscal year 14,000 euros per year having more than one payer and provided that the second or subsequent pays more than 1,500 euros, they will have to do the statement of income. For this reason, it is possible that workers who have never had the obligation to declare before must file the return this year.

The REAF recommended requesting the company or the SEPE to withhold a higher amount to cushion the result of the declaration. However, it is too late to do so, so if you have not requested the Income statement will surely pay.

Minimum Living Income

In 2020 a new aid was approved due to the deep economic crisis in which a large part of the residents of Spain have been plunged. This aid will be treated in the income statement like any other grant, so you will have to declare.

Cessation of activity

Self-employed workers who have availed themselves during 2020 to the extraordinary benefit for cessation of activity They must include it in the income statement as work performance and may be deducted for other expenses.

If they had been received regional grants or aid, the self-employed should declare these amounts as income from economic activities.

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