These are some of the new features introduced last year for the tax return to be filed from 11 April until the end of June 2023.

Reduction for earned income

The single check of 200 euros for low income, the youth cultural bonus of up to 400 euros and the youth rental bonus of up to 250 euros will be considered capital gains for personal income tax purposes. However, for the first two cases, if the taxpayer only obtains income from work for an amount of up to 22,000 euros, he/she is not obliged to file a tax return.

Maternity deductions

Another new feature of the tax return is that it includes a deduction of up to 1,200 euros per year for each child under the age of three, provided that at the time of the birth the mother was receiving a contributory or unemployment benefit. These 1,200 euros may also be deducted for mothers who, after giving birth, are registered with the Social Security or mutual society. In the latter case, with a minimum of 30 days of contributions.

Agricultural and livestock activities

On the other hand, agricultural and livestock activities will be able to reduce the price of the purchase of agricultural diesel by up to 35% and fertilisers by 15%. In both cases, the purchase of these inputs must have been made in the 2022 financial year.

Tax on Large Fortunes

From this year onwards, the tax will also be applied to large fortunes so that those with a net worth of more than 3 million euros will have to pay the equivalent of 1.7% of their wealth annually, for assets between 3 and 5 million euros; 2.1% in the case of assets between 5 million and 10 million euros; and 3.5% for assets of more than 10 million euros. However, it is estimated that this measure will only affect 0.2% of taxpayers.

Private pension plans

Personal contributions to Social Security systems, such as pension plans, will be reduced from 2,000 to 1,500 euros per year. However, company pension plans have been increased from 8,000 to 8,500 euros, so that the total amount does not fall below the 10,000 euros tax allowance.

Benefits for taxpayers on La Palma

Due to the consequences of the volcanic eruptions on La Palma, taxpayers who carry out their economic activities on this island will be able to reduce their net return of modules by 20%, both in 2022 and 2023. In addition, there will also be a general reduction that rises from 5% to 15% on the net return of modules obtained in the tax period 2022 by taxpayers in objective estimation.

Regional changes

In the regional brackets, Galicia, Madrid, Valencia and Andalusia have modified their personal, family and disability minimums.

New developments

This year, the Treasury has also included the obligation to report the transfer of the use of housing for tourist purposes.

In addition, the deadline for deducting the cost of energy efficiency works in housing is extended for one year.

Roberto Cerrato

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