News about the income tax

News about the income tax

The 2021 income tax return campaign started at the beginning of April and will last for several weeks. During this time, taxpayers will have to settle accounts with the Treasury by filing their income tax return, which will result in a payable or refundable tax. Although the income tax campaign ends on June 30, the last day for filing tax returns with the result to be paid by direct debit will be June 27, 2022.

These are the most significant novelties in this income tax campaign.

• New brackets: two new brackets have been designed, this will only have an effect on high incomes. A sixth tax bracket of 47% has come into force for all incomes from 300,000 euros per year. Depending on the autonomous community and its autonomous tax bracket, in the cases of higher taxation it can reach 54%. In parallel, a new bracket has been created from 200,000 euros per year in the taxable savings base, which is 13% in the state tax rate and 13% in the autonomous community tax rate, i.e. 26%.
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• A box for cryptocurrencies: the Tax Agency has placed a new box in the draft, the 1626, which will be destined to the declaration of cryptocurrencies. Specifically, it will be necessary to go to ‘Other gains and losses deriving from the transfer of patrimonial elements’ and place in the section ‘Balances in virtual currencies’ the movements made.

To declare the loss or gain derived from the transfer of these cryptocurrencies, on the other hand, it will be necessary to go to ‘Gains and Losses that do not derive from the transfer of patrimonial elements’. 

• Tax relief in pension plans: the maximum tax relief for private pension plans are 2,000 euros per year per taxpayer and the tax relief for company pension plans are 2,000 euros per year for the employee’s contributions and 8,000 euros for the employer’s contributions. The maximum amount to be tax relief for private pension plans has been reduced from 8,000 to 2,000 euros, in the same way that the possibility of tax relief amounts from company pension plans has been increased to 8,000 euros per year. In addition, the tax relief amounts for contributions to pension plans of which the spouse is a participant, member or holder are reduced from 2,500 to 1,000 euros.
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• Tax relief for energy efficiency works: there are three new state tax relief for energy efficiency works in taxpayers’ homes: 
  • A 20% tax relief (with a maximum of €5,000) for works that reduce heating and cooling energy demand by at least 7%. 
  • A 40% tax relief (with a maximum of 7,500 euros) of the amounts paid in works to reduce by 30% the consumption of non-renewable primary energy or to improve the energy rating to grade A or B.
  • A tax relief for communities of 40% (with a limit of €15,000) when works are carried out for the reduction by 30% of non-renewable primary energy consumption or for the improvement of energy efficiency to grade A or B. 
• Exemptions in aid for natural catastrophes: new features have been included derived from the damages caused by the snowstorm ‘Filomena’ and by the eruption of the volcano in La Palma. Specifically, the aids granted for death or permanent disability derived from ‘Filomena’, as well as those derived from the personal damages of the volcano of La Palma, are exempt from taxation.
• Sale and purchase of second-hand goods: taxpayers will only have to declare these movements if the sale value is higher than the acquisition value. If it is a frequent activity or the income exceeds the Minimum Interprofessional Wage the taxpayer will have to register as self-employed and also declare in the VAT. 
• Taxation of foreign workers: workers who, after living abroad for ten years, are taxed in Spain at a rate of 24% up to 600,000 euros. After that, they will be taxed at 47%, as in the recently introduced sixth bracket.

We know that this procedure is not easy and it can be dizzying to face a declaration without being clear about which tax relief you can benefit from. If you have any doubt and you want us to help you in the preparation of your tax return, do not hesitate to contact us.