Self-employed individuals will be required to file their tax return regardless of whether they show gains or losses. This stands as one of the major changes in the 2023 tax season, which opens on April 3 and runs through July 1.
Self-employed workers must also note that the deductible miscellaneous expense rate is moving from 5 percent to 7 percent. It is important to highlight that only those who perform professional activities, not business ones, and who declare under the direct estimation regime qualify for this increase. Those who file under modules are excluded, according to Antonio Gallardo, a Banqmi expert.
Regarding deductions at the state level, you can deduct vehicle costs, training related to the business, earnings, and RETA contributions (the Self-Employed Workers Special Regime), among other items. Some autonomous communities, such as Madrid, Asturias, or the Canary Islands, also offer additional regional deductions that taxpayers should consider.
One common challenge for freelancers is that the tax authority may not have complete information about their activities. Even when autonomous workers receive data about part of their expenses and income, it is often incomplete and requires careful verification to avoid errors and the hassle of corrections or supplementary declarations, notes the Banqmi expert.
For this reason, Banco Mediolanum emphasizes the importance of consulting a knowledgeable professional when preparing the return, since tax matters can be complex and not knowing how to handle them does not absolve the taxpayer from filing correctly.
Some reliefs and credits to include in the return
It is worth recalling that 2023 saw a series of aid measures. One notable example is the 200-euro aid. This government measure helps individuals whose annual income does not exceed 27,000 euros and whose net assets do not surpass 75,000 euros. Since this aid is treated as a capital gain, it must be included in this year’s tax return.
Additionally, youths who benefited from the rental voucher and received this aid during 2023 must report it, as the aid is not exempt from income tax.
Importantly, the amounts to be included are those actually received in the year, not what could have been due. If a beneficiary is entitled to 3,000 euros but only received 1,500 in 2023, the declaration should reflect only the 1,500 that was paid, explains Gallardo.
Housing Law and the tax return
Investors with rental properties should consider the changes introduced by Law 12/2023, the Housing Law, in relation to the tax return. This law provides deductions for contracts signed after May 26, 2023, reducing the prior 60 percent deduction to 50 percent in many cases. The deduction can rise if the area is declared a tension zone and rent prices drop (up to 90 percent); if the property is rented to young people under 35 for the first time (up to 70 percent); if the property is donated to the administration or a non-profit (up to 70 percent); or if the property has undergone rehabilitation within the previous two years (up to 60 percent).
In the investment arena, taxpayers should stay alert because the tax authority may not have all the information. The tax office typically reports only operations subject to withholding, such as dividends or gains from the sale of fund shares. Even then, it is essential to verify the accuracy of the data, with particular attention to dividends from foreign companies that may involve double taxation in both Spain and the country of origin, cautions Gallardo.
These explanations underline the value of meticulous record-keeping and professional guidance to ensure a correct and complete tax return.