Not all taxpayers are required to submit the annual Income Tax declaration and there are incomes that, by nature, do not even enter the tax accounts, according to the Federal Revenue Service. The law defines a set of situations in which the delivery of the Model 3 can be waived, but the criteria vary according to the type and value of gains obtained throughout the year.
Who may be exempt from submitting a declaration
The exemption applies, first of all, to those who only received income subject to exemption rates and did not opt for inclusion. Taxpayers who have exclusively obtained income from dependent employment or pensions of up to 8,500 euros per year are also excluded, as long as these amounts have not been subject to withholding tax.
There are other scenarios in which the declaration may not be required. This is the case for beneficiaries of subsidies or grants from the Common Agricultural Policy up to four times the Social Support Index, as long as they do not accumulate other relevant income.
The same principle covers isolated acts of low value, up to the same limit, when there are no other sources of income or only gains subject to exemption fees.
When the dispensation ceases to exist
The possibility of not submitting a declaration disappears if the taxpayer opts for joint taxation or if he has received certain types of income that the law considers more complex. This group includes temporary or lifetime income outside the pension scheme, income in kind and alimony above 4,104 euros per year.
Also, the holding of certain financial assets may require the delivery of the declaration, regardless of the amounts involved. Even so, even if the conditions for exemption are met, the taxpayer can choose to present Model 3. If they decide not to do so, they can ask the Federal Revenue Service for a free certificate with the reported income and tax paid.
Income that is outside of IR
In addition to the reporting obligation, there is income that is completely outside the IRS. Among them are various social benefits, such as unemployment insurance, sickness benefit, family allowance, social insertion income and maternity and paternity benefits. Compensation for bodily injury, illness or death, as well as amounts paid by insurance or the State in these situations, are also not taxed.
Prizes for social games, scholarships and certain distinctions awarded in public competitions without the transfer of copyright are also included in the list of exclusions. In the case of inheritances and donations, the amount received does not pay IR, although it may be subject to IOF. Only the income that these assets subsequently generate, such as rent, is taxed.
Special exemptions and minimum existence
There are also specific rules for dependent students, whose income from work up to five times the IAS may be excluded from tax, and for young workers covered by the IRS Jovem regime, which provides for partial exemptions over an extended period.
The so-called minimum existence continues to function as a safeguard. In 2026, annual income up to 12,880 euros benefits from exemption, ensuring that below this level there is no tax to pay.
Even so, the obligation to submit a declaration may arise if there is other income subject to general taxation, with the nature of the gains and the option for inclusion determining the final classification, according to .
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