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Personal Income Tax

Personal Income Tax Publicado: 16-04-2024

The campaign for the filing of the Personal Income Tax has begun, and from Gentile Law we want to share with you the most important information, so that you are aware of the most recent updates and know how you can benefit in this procedure. 

When can you file it? 

The period runs from April 3rd to July 1st, 2024. It is important to keep into account that, if the payment is made by direct debit, the deadline ends on June 26th,2024. 

How do I know if I am required to file the declaration?

Not everyone who earns income is required to file the declaration. Taxpayers who are in any of the following situations are not required to declare: 

  1. Taxpayers who earn less than 15.000€ in gross income from employment, under the following conditions
    1. When it comes from more than one payer (excluding the exceptions established in article 96.3 of Ley del Impuesto Sobre la Renta de Personas Físicas), 
    2. When they perceive compensatory spouse pensions or non-exempt alimony annuities,
    3. When the payer of the work income is not required to withhold taxes, 
    4. When they receive gross income from work subject to a fixed withholding tax rate. For the rest of the taxpayers who are not in any of the situations mentioned above, but whose income from work was less than 22.000€ in the previous tax period, they alsp will not be required to declare. 
  2. Those who have earned gross income from movable capital and capital gains, up to a limit of 1.600€ annually. 
  3. taxpayers who have earned imputed real estate income, gross income from movable capital that are not subject to withholding tax derived from Treasury Bills, and subsidies for the acquisition of officially protected or price-controlled housing, and other capital gains derived from public aid, with a combined limit of 1.000€ annually. 

Can I apply deductions from the amounts I pay in rent? 

Yes, however, it varies according to the Autonomous Community of residence: 

In Madrid: there is a deduction of 30% of the amount paid for the rental of the habitual residence with a limit of up to 1.237,30€. It will apply if the following requirements are met: 

  1. Being under 35 years old at the tax actual date. Or being between 35 and 40 years old while also having experienced unemployment and supporting family burdens, 
  2. The taxpayer`s income must not exceed 26.414,22€ for individual taxation, or 37.322,20€ for joint taxation, 
  3. Having a copy of the deposit receipt at the Social Housing Agency of the Community of Madrid formalized by the lessor, 
  4. Being listed in the contract as the tenant.

In Cataluña: There is a deduction of 10% of the amount paid for the lease of the habitual residence with a maximum limit of 300€. The following requirements must be met: 

  1. The income must not exceed 20.000€ for individual taxation, or 30.000€ for joint taxation. 
    1. Being 32 years old or younger at the time of tax accrual, 
    2. Having been unemployed during 183 days or more during the tax year, 
    3. Having a disability level of 65% or higher, 
    4. Being a widower and being 65 years old or older. 

If you live in any other Autonomous Community, feel free to contact us and we will be pleased to help you. 

What can I deduct from my full quota?

The law provides multiple options in which deductions can be applied, some of the most common are as follows; 

  1. Maternity deduction: Mothers with children under 3 years old are able to deduct 1.200€ from their income tax return until the children reach 3 years old. In this case, the following requirements must be met: 
    1. At the time of birth; 
      1. Receiving contributory or welfare benefits from the unemployment protection system, 
      2. Being registered in the Social Security or mutuality, or having contributed 30 days or more after childbirth. 
    2. Currently receiving unemployment benefits.
    3. The deduction amount can be increased up to 1.000€ when expenses have been incurred in nurseries or authorized early childhood education centers. 
  2. Deduction for investment in newly created or recently created companies: Taxpayers may deduct 50% of the amounts paid for investment in these type of companies from state full quota with a limit of 100.000€. 
  3. Deduction for large families: These deductions are an economic support for people who are holders of a large family, whether it is a general or special category. 

The amount allowed to be deducted is a maximum of 1.200€ per year for the general category, and the doubt for the special category, which is 2.400€ per year. 

At Gentile Law, we are at your disposal to assist you with the filing of your income tax return, so that, with the help of our experts in the field, you can obtain the best benefits available under the law. 



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