The Income Campaign and Heritage filing for 2021 follows the tax calendar that ends on Thursday, June 30. This means taxpayers have only a small window to complete their income tax returns. The campaign, which began on April 6, has built up momentum as the deadline approached, prompting many to finalize their declarations before the cutoff date.
In recent weeks, the process accelerated with some submissions linked to automatic payments, and the campaign concluded for those cases on Monday, June 27, after the automatic payment step was processed.
To date, more than 20.5 million tax statements have been submitted, and over 13 million of them are expected to result in refunds. This information comes from the tax authorities and was provided to Europa Press for reporting. The campaign overall recorded 21,921,000 declarations, a 0.9% increase from the previous year. Of these, 14,350,000 declarations, representing about two thirds of the total, are projected to qualify for refunds totaling approximately EUR 11,122 million, which is 5.8% higher than the prior cycle.
Additionally, the tax office noted that around 5,971,000 declarations will be filed with automatic payments, a figure down by about 1.5% from the previous period, amounting to approximately EUR 13.4 billion in refunds and taxes due.
Main innovations
This year brings several notable changes in the tax landscape. The authorities have increased tax rates for higher income brackets under Personal Income Tax, introduced updates related to cryptocurrency investments, and expanded support for individuals affected by the La Palma volcanic eruption. These changes aim to address revenue needs while providing targeted relief or adjustments where needed.
Specifically, the rate on state income tax for labor earnings exceeding 300,000 euros will rise by two percentage points, reaching 47%. For capital income above 200,000 euros, the rate will climb by three points, up to 26%. The combined effect of these adjustments is expected to impact about 36,194 taxpayers, or roughly 0.17% of the filing population, and to contribute an estimated €491.4 million to the treasury, marking a notable shift from 2021 and 2022 revenue patterns.
Other important changes include deductions in relation to private pension plans. The maximum allowed contribution for an individual has risen to 2,000 euros, while the joint limit for contributions by a participant and employer has increased from 8,000 euros to 10,000 euros. Government projections indicate that these adjustments will yield additional revenue of around 580 million euros in 2022. The measures are designed to support long-term savings while balancing tax incentives for employers and employees alike.
When it comes to wealth taxation, the prior year’s budgets introduced a 1% uplift to a top rate of 3.5% on assets that exceed 10 million euros, a change that continues to influence high-net-worth filings and planning strategies for large portfolios. The year’s updates reflect a broader effort to align tax policy with evolving financial landscapes and to address shifting trends in asset accumulation across the economy.