The income tax campaign starts today and one of the major developments according to the Finance Technicians (GESTHA) this year is that any taxpayer may deduct the purchase of their permanent residence, so if you have purchased your property on the Costa del Sol take advantage of the tax return. Also, if you did work on the property, the income limit to enjoy these tax benefits rises to 71,007 euros per year, increasing the number of potential beneficiaries. Although the campaign will officially begin in May, those who prefer not to wait to receive the draft by mail, may also check and confirm the information online as of next week.
When reviewing these drafts and in order to avoid any possible errors, as has happened in other campaigns - GESTHA advises to take into account the new changes in the tax legislation, which will largely determine whether the taxpayer comes out to pay more tax or receive money back.
Remember that the autonomous regions have received from the central government the ability to approve their own deductions on certain matters - such as housing rental - or make changes to personal income tax rates, you should be aware of the peculiarities of your region, if your property is on the Costa del Sol.
Among the major changes, the group highlights the deductions that have to do with the purchase and improvement of permanent residences, because they affect a larger number of contributors, followed by the raise of taxes to be paid by the more affluent tax payers.
Shelter deduction, now for all:
From this year, the income limit that existed to deduct the purchase of a permanent residence disappears, so now any taxpayer who has just purchased a home will be entitled to benefit from this 'discount'.
Thus, those who bought, built, expanded or renovated their permanent residence may deduct up to 9,040 euros annually, that base will rise to a maximum of 12,080 euros, if the work has been done to improve the home of people with disabilities.
If you do have done reforms, take advantage:
Another important way to save on taxes is the deduction for reforms in the home, except for those engaged in economic activities, which now more people can benefit from, after it has been increased to a limit of up to 71,007 euros, 33% more than the previous year.
In addition, the deduction percentage increases from 10% to 20%, while the maximum annual deduction for each taxpayer changes from 4,000 to 6,750 euros.
Improvements for landlords and tenants:
From this year, anyone who lives in a rented house may deduct up 10.05% of the amount they paid for their rent, provided the income is less than 24,107 euros (about 90 euros more than last season). Also the maximum deduction base increases slightly, although it varies depending on the tenant's income.
As owners, this year will be tax free up to 60% of what you have entered for the rent, although the percentage will increase up to 100% for those who have rented their home to young people between 18 and 30 (or 35 years if the contract was signed before this year).
Who earners more, will also pay more:
Another change is that those who last year earned more than 120,000 euros will be liable for personal income tax up to 22.5%, one more point than last year. The same goes for those who earned more than 175,000 euros a year, they will now have to pay to 23.5%.
Savings have also been taxed more in the last year, since those amounts ranging up to 6,000 euros had to pay taxes of 19%, for anything above that the amount increased to 21%.
Wealth tax returns:
The recovery of the Wealth Tax for the years 2011 and 2012 has been restored temporarily, this year will affect about 160,000 people who will have to bear this in mind when reviewing their tax draft. The only tax payers, who will be obliged to declare this tax, need to have a global wealth of over a million euros.
In particular, they will have to do so, if the value of their residence is more than 300,000 euros and the sum of their savings, cars, stocks, jewelry or other property has a value in excess of 700,000 euros, a figure that varies depending on the autonomous region.
Goodbye baby-check:
The tax season which starts today does not include the deduction of € 2,500 for the birth or adoption of a child which was implemented in 2007. This incentive benefited 1.5 million families during the period it was implemented and cost nearly 4,000 million to the state, will now disappear.
Less taxes for early retirement and bonuses:
Another innovation introduced last year and that will be permanent from now are irregular incomes, those exceptionally earned as a result of work activity (bonuses, stock options, compensations, retirement bonuses, etc...) and that are tax free for up to 40% of the amount of 300,000 euros.
Other deductions to consider:
In addition to these developments, the tax technicians recall that certain actions and investments can deducted but often go unnoticed. Anyone, who last year benefited from tax opportunities available to them, such as making contributions to their pension plan or to give donations to certain organizations (NGOs, foundations, political parties...) can save up to 2,700 euros in income tax this year.
Finally, Gestha, reminds everyone that in general terms, the tax return is compulsory for all those taxpayers who earn more than € 22,000 annual gross from a single payer, a figure that is reduced to the 11,500 euros in case one has multiple payers, and that the contribution of at least two of them exceeding 1,500 euros.
* The information provided on this article is not intended to be legal advice, but merely conveys general information related to tax issues. The contents herein may be subject to errors, omissions and amendments.
Source: ElConfidencial.com
