HE personal income tax (IRPF)The tax figure of the Spanish Treasury is a direct, personal, subjective, progressive, periodic and analytical tax that taxes income earned in a calendar year. And now, with these remaining days until the end of the year, we need to plan. What can be done to minimize tax costs? When the tax settlement is reintroduced in spring 2024. It is well understood that the maximum tax saving is limited to the amount of the fee resulting from the self-assessment, because the Treasury does not pay, but only returns it when necessary. withholding tax was made.
tax advantages It is easy to apply and saves you taxes. However, due to the “Matthew effect”, it is the richer and those with higher incomes who truly enjoy all the benefits. Benefits to taxpayers also come from proper personal income tax planning., without the need to defraud. Therefore, the taxpayer must make the decisions in advance that will benefit him the most: Thus, he will anticipate that appropriate decisions will be taken before the end of the year; and on the other hand you will have to postpone others that will clearly harm your interests.
investment There are tax implications on assets. However, the domestic investor should ignore these in many cases and take the time to know the scope of personal finance.
Therefore, it is worth remembering some tips that will allow you to reduce the personal income tax bill, the Wealth Tax (IP) and the Solidarity Tax on Large Fortunes (ISGF):
Every taxpayer should take these matters into consideration. tax deductions it depends on you personal situation and the Autonomous Community in which you reside.
withholding tax due to personal income tax These will depend largely on each taxpayer’s family circumstances. Therefore, Banqmi recommends updating the family situation with the employer so that the employer can properly store this situation.
professional fees deductible Expenditures on professional associations, unions and labor disputes.
membership fees Donations to political parties, donations to NGOs, foundations and non-profit organizations are subject to corresponding deductions in personal income tax.
work performanceIt includes salary and other concepts as well as benefits received. retirement plans; As a result, it is preferable to start collecting when the income from all these revenues decreases. If the contributions were made before 2007 and are converted into capital, you can benefit from a 40% discount. If retirement does not occur in 2021, you only have until the end of this year to benefit from this discount.
If they have income from work and you may be interested in earning rental income at the same time Contributions to the Pension Plan It is limited to €1,500 or 30% of the total net earnings from the business, whichever is lower. If it is a company contributing to the Employment Plan, the limit increases to 8,500 Euros. If the spouse has no income or has less than 8,000 euros, he or she can contribute up to 1,000 euros per year to the Spouse Plan.
If you bought habitual residence A 15% deduction can be applied to contributions not exceeding 9,040 euros before 2013.
The tax base of savings will be determined as follows: profit and returns The assets you obtain from different assets become more burdensome depending on your department. So, all these actions dedicated reduce tax base They will be welcome.
Profits made sale of permanent residence They will be exempt if the total amount is reinvested in another habitual residence within the next two years or if you are over 65 years of age.
they can offsetting capital gains with losses In order to reduce the savings rate section, appropriate changes must be made.
Capital gains made by people over 65 If the sales amount is used to create a lifetime annuity, the years will be tax-free. This must be established within a period not exceeding six months and with a maximum limit of 240,000 euros.
To uncover an obstacle, if the user thinks make a good donation You can sell it and then donate the money. The Treasury does not allow compensation for damages arising from donations.
neither can you To reveal the loss of value of an asset that is sold and bought again To maintain investment. There is an “enforcement prohibition” that prevents this unless two months have passed since the sale.
dividend tax It depends on how they are received. If received in cash, they will be subject to a withholding tax of 19% and will form part of the savings income in the income from movable capital section. If shares are distributed through “dividend certificates”, the tax treatment will depend on whether new shares are purchased, whether the rights are sold on the Market, or whether the shares are sold to the issuing company.
It’s going to happen Last year in which unpaid losses from 2019 can be compensated. It might be interesting to uncover some capital gains to financially clean up assets.
in case sale of an assetWhen calculating profit or loss, transmission costs will be deducted from the resulting price and purchasing costs By adding it to the price paid, the profit made will decrease or the loss to be compensated will increase. If the asset being sold is a leased property, any depreciation incurred over the lease term will need to be subtracted from the purchase price.
benefits obtained through rent of a property Deductible expenses (depreciation, tax, financial interest, repairs, insurance, etc.) will only be deducted up to the rental income limit and will not be able to generate negative returns, but the excess expense can be compensated in the following four ways: exercises.
depreciation of rental house It will be 3%, based on the highest of the following values: The cadastral value of the construction or the acquisition price paid.
If these are realized energy efficiency studies This deduction can be made in a habitual residence or a rented house, but the cost of the work done cannot be paid in cash.
in case divorce from marriage in community property The capital gain obtained from the termination of the condominium will not be taxed unless there is an overallocation.
Starting from June 30, 2023, a deduction of 15% of the ticket price may be made. Installation of battery charging system for electric vehiclesUnless the installation is affected by economic activity.
If one tenant did not pay the rent Even if an expense is later declared as a “bad balance,” it must be included as income in personal income tax in 2023.
one for 2023 Deduction for the purchase of a “bumped” electric vehicle.
For Lease agreements starting from January 1, 2024 The discount rate to be applied will be 50% of the net performance. A 60% discount will continue to be applied to contracts in force before this date.
Tax will be charged for this subsidies received by neighboring communitiesAs equity gain according to the participation coefficient.
You can deduct 30% of the amount you pay. subscription of shares of newly created companies 60,000 euros on an annual basis, if the company is considered an emerging company this will be 50% and the maximum basis will increase to 100,000 euros.
Delivery of shares of the company you work for An exemption of up to 12,000 euros will be provided if certain conditions are met, or 50,000 euros in the case of a developing company.
you won’t miss it Right to deduction from housing rents If the contract is subject to extension, as long as the validity of the original contract is preserved.
It may be interesting to open a bank for small savings in the medium and long term. Individual Long Term Savings Account (CIALP) or a Individual Long Term Savings Insurance (SIALP). Both will allow deposits not to exceed 5,000 euros per year over the next 5 years, and profitability will be exempt if the amounts paid are not repaid.
After all, personal income tax is nothing more than a tax. Preparation of accounts between the taxpayer and the taxpayer Tax Administration. Therefore, in most cases it is advisable to consult a tax advisor to mediate between both parties.
At this point in the year, the aim for the 2023 declaration is financial and tax planning exercise If an asset is worth acquiring or selling for profit and compensation for losses incurred during the year. By taking advantage of the generally positive nature of this year, it can be used to compensate for worse losses in previous years.
Equally important keep all documentation and supporting documents all deductions made. Treasury is very skeptical and may request presentation within the next four years.