INCOME TAX CAMPAIGN: 2024
As usual at this time of year, the time is approaching to render accounts with the Tax Agency.
From the 2nd of April 2025, the period for the preparation and filing of Personal Income Tax (IRPF) and Wealth Tax (IP) returns begins and ends on the 30th of June 2025 (25th of July 2025 if paid by direct debit).
We reiterate, as we do every year, the danger of accepting the drafts sent by the Tax Agency as they may omit data or include some incorrect information. The Tax Agency may not be aware of changes in the taxpayers situation, such as the number of children, and therefore may not apply certain deductions that may be applicable. Acceptance of these does not exempt from a possible penalty for inaccurate or incomplete data. Those responsible for the data, when the draft is accepted, are the taxpayers, whether they are correct or not, so it is important to check it thoroughly and verify that all the data, deductions, etc., are correct.
Having stated the above, we would like to point out the points that we consider most relevant to bear in mind:
1. Obligation to declare.
Generally speaking, it is not compulsory to file a tax return for total income from work whose amount does not exceed 22.000 euros gross per year when there is only one payer or 15.876 euros when income is received from more than one payer, provided that the sum of income obtained by the second and other payers exceeds 1.500 euros.
2. Income from real estate capital.
New this year, the reduction percentages for income from property rental have been modified. Until this year, the general percentage was 60%. For 2024 they will be:
- 70% of the rent for the first time in areas with a stressed residential market when the tenant is between 18 and 35 years old.
- 60% if the property has been refurbished in the 2 years prior to the date of the contract.
- 50% in any other case.
3. Acquisition of electric vehicles.
For 2024, both the 15% deduction for the purchase of electric vehicles on a maximum base of 20.000 euros and the 15% deduction on a maximum of 4.000 euros for installing recharging points will be maintained.
4. Refund to mutual insurance companies.
The Tax Agency has modified the process for refunding personal income tax (IRPF) to mutual fund members. Refunds will now be made in instalments, applying for one year per financial year, i.e. this year the refund will be requested for 2019 and so on.
5. Deduction for donations.
The deduction for donations to certain entities has been improved for 2024. On the first 250 euros donated, 80% can be deducted and for the rest, from that amount onwards, 40%. This percentage is increased by 5 percentage points in the case of having made donations to the same entity in the previous two years.
We remain, as always, at your disposal to clarify any doubts you may have on this matter or any other subject of interest to you.
In Barcelona, 25th of March 2025.
