Here’s another year, your worst nightmare. The Income statement It doesn’t forgive anyone, and if you don’t want to overpay, you should consider what tax breaks you can take advantage of.
At Globaliza, we want to tell you a little bit about each of the tax deductions for the 2020 Income Statement.
Record and prepare for battle.
# 1 Retirement Plans
Do you have a retirement plan or some other social security product?
Son franchise in the general taxable income of the personal income tax. Come on, the treasury will return part of the investment in these financial products.
Want to know how much?
- Between 19 and 45% of contributions based on the taxpayer’s lowest rate.
- The maximum you can contribute is € 8,000 or up to 30% of income from work and economic activities.
- You can pay up to 2,500 euros into your spouse’s pension plan if they have no income from work and economic activities (or if they are less than 8,000 euros).
- In pension plans for people with disabilities, the annual limit is € 24,250. This restriction is common between you and your family members. For family members the limit is € 10,000.
- Regarding persons with disabilities in their pension plans, the annual limit is € 24,250. This restriction is set between a person with a disability and members of his or her family if he or she wishes to make contributions. For family members the limit is € 10,000.
- If you were part of ERTE or you are a self-employed person who stopped working due to a pandemic that managed to save consolidated rights from pension plans, social security plans, social welfare business plans and social mutual benefits, for a period of six months – from 14 March 2020 – and to the limit of salaries or net income that is no longer received. The fee is considered as realized income.
# 2 Motherhood
If you are a mom and Your children are under 3 years old, you can deduct up to € 1,200 per year for each child.
But for that you have to do economic activity and be registered with social security or reciprocity.
The deduction can be applied directly to the income statement or you can collect it in advance on a monthly basis.
That is, € 100 every month.
If you choose the latter option, keep in mind that you must report them as income.
And if you have the cost of a daycare or education center, the deduction can be extended up to € 1,000 more.
Large family or dependents with disabilities
There are five deductions intended to reduce the taxation of taxpayers with higher family burdens.
That is, depending on your family, you can refuse more or less.
The deductions are as follows:
- Deductions for dependent offspring and offspring with disabilities (up to € 1,200 per piece).
- Dependent spouse with a disability (up to € 1,200 per year, as long as you do not have an annual income, except for the exempt, higher than € 8,000 or you are entitled to a previous deduction for descendants or ascendants with disabilities)
- Big family (up to € 1,200 per year as an ascendant or brother of an orphan father and mother, who is part of a large general category family).
- This amount increases to € 2,400 in the case of a large family in a special category. It increases up to 600 euros for each child who exceeds the minimum number of children to be a large family of general or special category, as needed.
- Deduction for legally separate ascendant, or without a marital relationship, with two children without the right to food annuities (up to € 1,200).
Shopping from home
Before you start jumping for joy because you bought a home in 2020, we need to tell you something.
If you have sold the house, you have no right to deduct either the purchase price or the acquisition cost.
The state deduction was waived on January 1, 2013.
It is true that a transitional regime has been established for those who practiced the deduction before that date, but those who currently acquire it cannot refuse it.
For beneficiaries, the deduction may deduct up to 15% of payments made this year in connection with procurement, construction or rehabilitation up to a maximum of € 9,040.
Renting a regular stay
If, on the other hand, you live under rent, only 10.05% of the amount paid can be deducted from those contracts in force that were established before January 1, 2015.
Until they exceed the tax base of € 24,107.2.
International double taxation
What is this deduction for? To avoid that income earned abroad by income taxpayers is subject to this tax in Spain, in addition to the tax in question abroad.
In the event that income includes income or capital gains earned and taxed abroad, less than the following two amounts will be deducted:
- The effective amount of what is paid abroad due to a nature tax that is identical or analogous to the personal income tax or the income tax of non-residents as a result of the realization of the stated income or capital gain.
- The result of applying the effective average tax rate to a portion of the taxable base taxed abroad.
For these purposes, the effective average tax rate is the result of multiplying the quotient obtained by dividing the total liquidity quota by the taxable base by 100.
In this case, the type of tax corresponding to the general income and savings must be differentiated, as appropriate.
Transferring image rights
If by any chance you transferred your image rights during 2020, the taxes you can deduct are:
- Personal tax paid in Spain or abroad.
- Tax or tax actually paid abroad due to the distribution of dividends or profit participants distributed by the first recipient.
- Personal tax of nature analogous to income tax paid by a natural person who has an image abroad or in Spain.
In addition, these deductions are made even when taxes correspond to tax periods other than the one in which the inclusion was made.
The amount of these deductions may not exceed, on the whole, the full quota which must be paid in Spain for the imputation of the proceeds for the transfer of the rights to the image included in the tax base.
Have you invested in activities of cultural interest?
Then you can refuse 15% your contribution.
And yes, it also includes the acquisition of historical heritage or the rehabilitation of buildings located in UNESCO World Heritage sites.
Donations to NGOs
It is also possible to refuse a 75% of the first 150 euros donated to an NGO.
If you exceed this number, you can deduct up to 30%.
In addition, regular collaboration with the same organization allows you to add an additional 5%.
Being a good person pays off, doesn’t it?
Finally, if you are affiliated with a political party, federation, coalition, or electoral group, you can deduct 20% of the fee.
The only thing you should keep in mind is that the limit is 600 euros per year.
Did you doubt that? While we wish we could attend each case, the reality is that this topic can go a long way.
Therefore, we always recommend it go to a professional that you can focus on your situation and thus get the deductions you deserve.