Did you know how much you can save this year on your income tax return ? If you are an average taxpayer, you can save 2,780 euros, if you take advantage of the changes in personal income tax.
In addition, if you invest up to 6,000 euros in some of these items before December 31, you could save between 735 and 1,680 additional euros.
Savings vary depending on income. The savings that a mileurista can get with the five most common personal income tax deductions is 1,948 euros, but it reaches 2,222 euros if the taxpayer earns 30,000 euros per year and 6,171 euros if he earns 150,000 euros.
- 1 1 #. Advance the mortgage payment
- 2 2 #. Home improvements
- 3 3 #. Adapt the home to people with physical disabilities
- 4 4 #. Contributions to political parties
- 5 5 #. Business savings accounts for entrepreneurs
- 6 6 #. Membership fees and donations to NGOs
- 7 7 #. Patronage programs in the restoration and rehabilitation of Spanish Historical Heritage assets
- 8 8 #. Contributions to the pension plan
- 9 9 #. Acquisition of a habitual residence
- 10 10 #. Buy urban property before December 31
- 11 11 #. Taxation of capital gains
1#. Advance the mortgage payment
Among the deductions that a taxpayer can take advantage of before the end of 2019, the first advice we can give them is the following: if you are paying a mortgage , it is to make an advance on the pending part of it , something that in addition to reducing our debt can allow us to save over 624 euros in personal income tax.
2#. Home improvements
Are your neighbors doing work on your building? Three are underway in mine. It will be because its tenants can apply a deduction that can reach up to 1,154 euros.
3#. Adapt the home to people with physical disabilities
If you have a disability or a family member suffers from it, carrying out works for adaptation or rehabilitation for people with physical disabilities has tax advantages that disappear in 2013.
4#. Contributions to political parties
There is one of the most unfair contributions (to my personal taste) to be made at this time, up to 336 euros in your statement if you make a contribution to a political party . Just comment that these deductions do not disappear in 2013 as works for adaptations or rehabilitation for people with physical disabilities. Really unfortunate.
5#. Business savings accounts for entrepreneurs
Are you an entrepreneur? If so, we wish you good luck as well as patience, but if you take advantage of the taxation of savings accounts - business you can achieve a maximum of 282 euros (quite a push).
6 #. Membership fees and donations to NGOs
Are you a supportive taxpayer? Your membership fees and donations to NGOs and other non-profit entities can reduce personal income tax between 10% and 25%.
7 #. Patronage programs in the restoration and rehabilitation of Spanish Historical Heritage assets
Do you like to see our Historical heritage well cared for and in good condition? A 30% deduction is yours if you participate in patronage programs in the restoration and rehabilitation of Spanish Historical Heritage assets.
8 #. Contributions to the pension plan
As always, the Treasury thinks of us and our retirement . It invites us to make contributions to our pension plan by offering 24.75% and 52% on the investment made. Remember that this tax license is greater in 2019 and 2020 due to the complementary tax that the Government created for personal income tax. As always, anything that is putting money for the bank is pleasing to our government and it deserves an award for its act.
9 #. Acquisition of a habitual residence
The main change in IRPF for 2019 will be the elimination of deductions for investment in habitual residence . Whoever is thinking of buying a home can deduct up to 15% of the invested capital before the end of the year with a limit of 9,040 euros, benefiting from this deduction in the following years, surely when the famous "Bad Bank" comes out they will invent something for you to buy your homes, we will see it over time.
If you buy a new home before the end of 2019, the super-reduced VAT of 4% is still applied instead of the 10% that will be applied in the future, except for VPO or VPP homes that will continue with 4%.
10 #. Buy urban property before December 31
Attention this is important! If you buy an urban property before December 31, you will save 50% on your subsequent personal income tax when you make the sale.
eleven#. Taxation of capital gains
Remember that the Government is going to change the format of taxation of capital gains obtained in a year, which will be taxed on income, not on savings. If you are a stock investor, the end of the year is a good time to record the losses generated by an investment fund, stocks or financial derivatives since it represents tax savings if it is offset by the capital gains obtained.
We hope these tips help you save on your 2020 income.
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