This is an article that I have copied and may be of help to you
As in previous years it is now the time to pay your annual income taxes to the Spanish Inland Revenue (Agencia Tributaria). During the months of May and June individuals who are tax residents in Spain (those who have lived in Spain more than 183 days during year 2010) must submit their annual Income tax returns, corresponding to the tax year 2010.
Depending on the level of income, some individuals do not have to submit the annual tax returns, but it is recommendable that everybody does in order to avoid any future problems with the Inland Revenue. In Spain there is a self assessment system, so ignorance of the Laws is not a legal excuse for not fulfilling their obligations.
It is better to get advice and file the tax returns at 0 zero, than not doing it at all. Also it may be possible that a taxpayer has the right to receive a refund from the Inland Revenue, so it’s worth spending 30 minutes with your tax adviser to discuss your particular personal circumstances, and to file your annual income tax returns.
For non Spaniards who are living permanently in Spain it is also important to submit their annual tax returns as tax residents in Spain in order to confirm and clarify their personal tax situation with the Spanish Inland Revenue. It could be very important to have annual tax returns duly submitted, just in case they wish to sell their property in the future and need to be considered as tax residents in Spain to be able to take tax advantage for reinvestment, etc.
During the months of May and June (remember that dead line to file tax returns is 30th June 2011) the tax experts of Manilva Solicitors are happy to meet clients free of charge to discuss their particular personal and financial circumstances and advise them on the best course of action to take regarding whether or not their annual income tax return should be filed.