Limit: one month. Between now and the end of the year, taxpayers still have time to implement some Strategies that can help you save a few euros or larger amounts depending on the operation in question. Beyond traditional maneuvers, such as contributing to pension plans, increasing the percentage of salary received in kind or making donations to non-profit entities – whose tax treatment has been improved this year – the recent reform prosecutor removed in extremis by the Government has forcibly opened a one month window of opportunity so that taxpayers with large investments avoid the tax increase that they will face if they materialize from 2025.
Avoid the increase in capital returns in personal income tax
As of January 1, 2025, capital gains above 300,000 euros They will go from paying taxes at 28% to 30%as a consequence of the tax reform approved by the Government, which opens a one-month window of opportunity for individuals with large investments or shareholders of business projects to avoid this tax increase. “If a taxpayer was thinking about making a large investment or distributing a dividend or reducing capital, the best strategy is to advance it and do it before the end of the year,” explains Rubén Gimeno, technical secretary of the REAF.
Donations improve your tax treatment
The improving the tax treatment of donations to associations, foundations and NGOs in 2024 allows improving the fiscal performance of this type of transfers. The new framework provides for a tax relief of 80% on amounts donated up to 250 euros and between 40% and 45% (previously 35%) above that threshold. According to an estimate made by REAF, for a donation of 400 euros, the extra savings thanks to this new framework compared to last year is 47.5 euros. A donation of 1,000 euros generates a tax saving of 500 euros.
The Aedaf reminds that residents in the Valencian Community may apply certain tax aid for its support to those affected by DANA.
Those directly affected will be able to deduct taxes in the regional section of their income tax return. 100% of the expenses incurred to repair the material damage sufferedas long as your tax base is less than 45,000 euros and expenses do not exceed 2,000.
A 45% tax reduction is also planned for the amounts invested in strengthening the capital of companies affected by DANA so that they maintain their operations in the area.
Pay attention to rental income
The regulatory change introduced in the reduction of real estate capital returns may be problematic, but it may also be an opportunity to lower the tax bill. The first thing to keep in mind is that in general this reduction goes from 60% to 50% for all contracts signed after May 26, 2023. But there are option to increase that reduction up to 70% if the home is in a stressed area and is rented to a young person under 36 years of age or even up to 90% of the income generated if, being in a stressed area, the rental price is reduced by 5%.
last chance
If I was thinking about purchase a plug-in electric vehicleinstalling a charging point at your home or carrying out work to improve the energy efficiency of your home It would be advisable to do so before the end of the year. As of January 1, the tax aid in the Income Tax (IRPF) that over the last two years has made it possible to reduce up to 3,000 euros in the bill for these operations for thousands of taxpayers will no longer be in force.
In the case of aid for the purchase of plug-in electric vehicles, it must be taken into account that they cannot be applied in the case of hybrid or zero kilometer cars and in the case of tax aid for reforms that increase the energy efficiency of the home. , that the energy savings achieved must be certified through a report from an accredited entity.
Manage payroll to pay less
The REAF remembers that there are a handful of remuneration in kind that is exempt from taxationsuch as daycare vouchers, health insurance or food vouchers. Agreeing with the company to receive a part of the annual salary in this way will help reduce the tax bill for work income. There is also the option of deducting the income from transport allowances from the base, at a rate of 26 cents per kilometer.
Advantages of being over 65 years old
The Spanish Association of Tax Advisors (Aedaf) remembers that if the taxpayer is over 65 years of age, they have a total exemption from personal income tax up to 24,000 euros for the capital gains obtained from the sale of goods or rightsas long as they are reinvested in a life annuity in the following six months. Capital gains from the sale of the habitual residence are also exempt, as long as it is proven that one has resided there for at least the last three years.
Insurance and pension plans
Despite the recent Government cuts to aid for contributions to pension plans Individuals still allow the personal income tax tax base to be reduced by up to 1,500 euros. In the case of the self-employed, this tax advantage can be extended to 5,750 euros in the case of the simplified plans created by the Government. There is the possibility of reducing the income tax base by up to 2,000 euros for the premiums paid for long-term care insurance, both by the taxpayer and by their family members up to the third degree.
The curious case of the unemployed
In 2024, a handful of fiscal measures approved by the Ministry of Finance came into force to prevent the increase in the Minimum Wage from translating into a tax increase for its beneficiaries. For this raised the threshold to 15,876 euros from which there is an obligation to withhold and also the reduction for work income. However, a provision approved by the Ministry of Labor, which requires submitting the Income Tax Declaration to continue receiving unemployment benefits, has disrupted the entire scheme and will result in a tax increase for thousands of unemployed people.
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