How to pay less in personal income tax: exemptions, deductible expenses and deductions

How to pay less in personal income tax: exemptions, deductible expenses and deductions

In the middle of the campaign to declare the Personal Income Tax (IRPF) for the year 2018, it is important to review the news and pay special attention to personal circumstances and economic data in order to reduce the tax burden as much as possible.

This year, the minimum for taxpayers who receive income from work that come from more than one payer is 12,643 euros.

We now briefly analyze some of the actions that you have been able to carry out in 2018 and that can make you pay less in your personal income tax.

  • CONTRIBUTIONS TO PENSION PLANS: Contributions to pension plans are one of the deductible expenses that reduce the tax bill, while also representing a form of savings to ensure retirement. However, care must be taken when carrying out the rescue, as the tax consequences depend on whether it is done in the form of capital or income.
  • HOUSING PURCHASE – DEDUCTION FOR ACQUISITION OF HABITUAL HOUSING: Applicable for those taxpayers who bought their usual home before January 1, 2013 with a mortgage, but it is required that they have applied this same deduction in the income tax for the year 2012 or earlier.
  • HOUSING SALE – EXEMPTIONS: The capital gain obtained from the sale of the habitual residence for persons over 65 years of age is exempt from tax in any case.
  • HOUSING RENTAL – Deduction for the tenant and deductibility of expenses for the owner. ATTENTION TENANTS, THERE ARE VERY BENEFICIAL AUTONOMIC DEDUCTIONS.
  • DONATIONS, UNION DUES, PROFESSIONAL COLLEGES AND MEMBERSHIP FEES AND CONTRIBUTIONS TO POLITICAL PARTIES
  • MATERNITY DEDUCTION: there are different deductions for maternity, among which it is worth highlighting: deduction for birth or adoption, deduction for large families, for custody expenses in authorized nurseries or early childhood education centers, deduction for the acquisition of school supplies or deduction for reconciliation of work with family life.

At VILE Consulting we will be happy to help you with your taxes, as well as give you advice if you think you may be in a position to apply any of the above deductions / exemptions, and you need more information about the requirements and conditions necessary for their applicability.

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