Children who give the entitlement to the benefit

The originator is any child that is born or adopted, after 01-07-07, if the birth was on Spanish soil and the adoption was constituted or recognised by the competent Spanish authorities.

To this effect, born means that the foetus had a human shape and lived for 24 hours after being completely removed from the mother (art. 30 of the Civil Code).

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Recipients

Those who are listed below, as long as they can prove that they have resided legally, effectively and continuously on Spanish soil for at least the two years immediately prior to the birth or adoption.

• For a birth, if this occurred on Spanish soil, the recipient will be the mother. If she dies without having applied for the benefit or having received the anticpated deduction, the other parent will be the recipient.
  
  
• For an adoption, if this was constituted or recognised by the competent Spanish authorities:
  
  
  • If the adopters were of different sexes, the woman. If she dies without having applied for the benefit or having received the anticpated deduction, the other adopter will be the recipient.
    
    
  • If the adopters are of the same sex, the recipient will be decided by mutual agreement.
    
    
  • If the adoption is made by only one person, it will be this person. In no case can the adopter be a recipient when the adoption is made by only one person and the paternal authority of one of the parents continues to exist.

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Amounts

For each child born or adopted, recipients will be entitled to:

• A deduction of 2,500 euros a year off their IRPF when, if they pay income tax, any of the following circumstances occur:


• They are self employed or employed by someone else, so that they are registered with the corresponding Social Security scheme or mutual society at the moment of the birth or adoption.


• They have collected asset income or capital gains that are subject to withholding or a deposit to their tax account, or income from economic activities from which the corresponding fractional payments have been made.

This deduction can be paid early for the coming national tax period.


• A non-contributive Social Security benefit of 2,500 euros , if they do not work or do not have an income that is subject to income tax withholding or when they are tax payers to whom the regional laws on income tax (IRPF) of Navarre or the Basque Country apply.

The recipient can transfer the right to collect the deduction or the economic benefit to the other biological or adoptive parent when the entitlement has been granted, if this person meets the requirements.

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Compatibilities

Receiving the benefit for the birth or adoption of a child will be compatible with receiving other Social Security family benefits, but incompatible with income tax (IRPF) deductions.

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Management and recognition of the entitlement

Management

The management and administration of the non-contributive benefit is the responsibility of the INSS, unless it have been delegated to the competent departments of the National Tax Administration Agency (AEAT).

Time limit for submitting applications:

The application may be submitted after the birth or adoption of the child has been registered with the Civil Registry.

Expiry:

The right to the benefit expires 5 years from the day following the date on which the causal event occurred.

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Documents which must accompany the application

Submitting an application for the early payment of the income tax IRPF deduction and the non-economic benefit, on forms 140 and 141, does not require any documentation to be submitted justifying that the requirements were fulfilled, as they will be verified by the |AEAT by exchanging the information necessary for each case with the competent civil service departments.

However, in those cases where this exchange of information could not prove that the requirements were fulfilled, the applicant can be required to present the following documents, among others:

1. Certificate of registration with the local town hall proving residence in Spain, if these are Spanish citizens or foreign nationals who are not required to obtain a residence permit.
2. Police certificate showing the date that a residence permit was granted, if these are foreign nationals who have the obligation to obtain one.
3. Family booklet or certificate with an extract from the registration of the child born or adopted from the corresponding Civil Registry.

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Application forms

Who must submit form 140:

Those who pay IRPF and are entitled to the early payment of the maternity deduction and wish to receive the deduction for birth or adoption at the same time.

Who must submit form 141:

• Those who are not entitled to the IRPF deduction for birth or adoption or whose tax residence is in either the Basque Country or Navarre and therefore under their "foral" laws may be recipients of the single payment economic benefit from the Social Security.
• This form must also be used by those who pay IRPF and are entitled to the deduction for birth or adoption or to the early payment of the tax deduction or, although entitled to it, have not applied for it.
  

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How and where to submit applications

• Electronic Submission: over the Internet http://www.agenciatributaria.es (form 141 after 01-01-2008).
  
  
• Telephone Submission: by phoning the National Tax Administration Agency Telephone Support Centre on 901-200-345.
  
  
• At any National Tax Administration Agency Delegation or Administrative office. Form 141 can also be submitted at any INSS office.
  
  
• More information can be found at AEAT.

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