How to pay taxes in Spain (two ways)
10/07/2017.- By means of this post web will explain briefly how to pay taxes in Spain (two ways). Once calculated the tax liability, the relevant amount must be paid on or before the tax is filed in the Tax Office, by means of any of the following two methods:
1.- DOMICILIATION
This is, by far, the easiest way to pay taxes in Spain. You can quote in the tax return the bank account (only Spanish banks) to which the amount due shall be debited. Then, on the last day of the payment term, the Tax Office will charge the tax payer’s bank account. It is important to have enough funds in the account to meet the payment; otherwise, the tax will be deemed to remain unpaid. Late payment could cost you a minimum surcharge for late payment of 5 %. To be more precise, for returns submitted less than three months late the recharge is 5 percent; however it may amount to 20% depending on the delay.
Very important: When using this system tax return must be filed with an anticipation of, at least, five (5) days to the last day of the payment term.
2.- (MANUAL) ON LINE PAYMENT
This second method to pay taxes in Spain is normally used when the payment has not been domiciled in a bank account, usually because the tax return has not been filed before the five days period explained before. This is a two steps process.
- First step (to be done by the Client): the tax payer must pay the tax in his bank and get a number called NRC (for the Spanish acronym of “Número de Referencia Completo”). The NRC is very important because it allows the Tax Office to link the payment done and the tax return. In other words, it allows the Tax Office to track the payment of the tax return. Most Spanish banks, if not all, allow the payment of taxes in Spain through their on line banking platforms. Once your account is debited, the bank will give you the NRC; then you have to give that number to us and we will make sure it reaches the Tax Office when filing the official tax return
- The second step (this is for avantges to take care of) is to file the tax return and, simultaneously, provide the Tax Office with the NRC. This last step is necessarily done online by avantges through our digital certificate.