9.7 Family unit deduction Member States of the European Union

With effect from 1 January 2018, introduces a new deduction to the charge in favour of those taxpayers whose remaining members of the family unit are resident in another member state of the European Union or the European Economic Area, which prevents them from filing a joint declaration. This deduction equates the amount payable to the amount that would have been borne if all members of the family unit had been tax residents in Spain.

Thus, taxpayers may deduct from the gross tax amount corresponding to their individual tax return the result of the following operations:
1. The following quantities are added together:
- The gross state and autonomous tax amounts reduced by the deductions laid out in Articles 67 and 77 of the Personal Income Tax Act (LIRPF) for members of the family unit paying Personal Income Tax.
- Fees for Non-Resident Income Tax corresponding to income obtained on Spanish territory in the same tax period by the other members of the family unit.

2. The total net tax that would have resulted from being able to choose to tax in conjunction with the other members of the family unit is determined. For this calculation, the portion of positive income of non-resident members of the family unit that exceeds negative income will be taken into account for each source of income.

3. The share referred to in Section 2 will be subtracted from the amount obtained in Section 1. When this difference is negative, the amount to be computed will be zero.

4. After the deductions set out in Articles 67 and 77 of the LIRPF, the quantity referred to in Section 3 will be deducted from the total State and autonomous tax liability.

     a. For these purposes, the full state quota will be reduced by the proportion that the IRNR quotas represent with respect to the total amount provided for in section 1, and the remainder will reduce the full state and regional quotas in equal parts.
     b. When there are several personal income tax payers in the family unit, this reduction will be made in proportion to the respective full amounts, once the deductions provided for in articles 67 and 77 of the Personal Income Tax have been made for each of them.

This deduction will not apply when any of the members of the family unit:
- Would have chosen to pay tax under the special system applicable to workers displaced to Spanish territory (Article 93 of the LIRPF).
- Would have chosen to pay tax under the system established for taxpayers resident in other Member States of the European Union in Article 46 of the rewritten text of the Non-Resident Income Tax Act.
- Does not have a tax identification number.

Completion:

You must indicate to us the amounts paid for non-resident income tax on income obtained on Spanish territory by non-resident members of the family unit.

 of the deduction, and will reflect this, if entitled to it, in boxes 0565 and 0566.