What to do to improve the results of your next income statement
Do not forget the deduction for the purchase of housing
If you bought your home before January 1, 2013 you can benefit from this deduction. You can deduct 15% of the amount per year up to a maximum of € 9,040. In total we talk about more than € 13,000 of relief.
Sell a first home in exchange for another
If during this year you have sold your first home with expectations of buying another one to replace it, you can block the municipal capital gain for a maximum of two years. During this period you must have bought the new home or you will have to pay the profits resulting from the sale.
If you are over 65 or dependent and have sold your first home
Remember that, even if you do not buy another one within two years, you are exempt from taxing the profits obtained. In the case of Navarra this exemption is extended to 70 years on the first € 300,000 profit. In the Basque Country, the limit is € 400,000 in profits and 65 years of age. All for a single transmission.
From Hesta also remember that any profit obtained by a citizen over 65 years, and not exceeding € 240,000, is tax free. Provided that this amount is destined to create a life annuity within a maximum period of six months after obtaining the capital.
Make last-minute contributions to the pension plan
It is quite usual to make a contribution to the pension plan during the last months of the year to have less to pay. If this solution is chosen, it should not be forgotten that after the tax reform a maximum amount of € 8,000 can be provided per year. This amount must not exceed 30% of the income from economic activities.
Contributions by the taxpayer’s spouse have also been modified in the last tax reform. If you receive income for your economic activities below € 8,000, the contribution limit is € 2,500.
According to Hesta, an average investment of about € 6,200 to the pension plan represents an approximate saving of about € 1,500.
Aid for entrepreneurs
Since 2013, the Personal Income Tax Law establishes that business angels can be deducted up to 20% in the income statement. These deductions are aimed at those people (whether family, friends or strangers) who invest in the creation of new companies during the first three years of incorporation. They must also keep their participation for a minimum of three years.
If these requirements are met, they will obtain a 20% deduction in the personal income tax on the investment they have made. The maximum deductible is set at € 50,000. The participation of second-degree spouses and family members can never exceed 40% of the total capital of the company.
Likewise, a total exemption is offered when leaving the company in case of reinvesting this capital in a new company of recent creation.
Do not forget donations
It is important to keep the supporting documents that have been made during the year donations to non-profit organizations. From these donations, the taxpayer can deduct 75% of the first € 150 and 30% of the rest of the capital that has been donated.