ADVISE FOR THE TAX RETURN IN SPAIN 2019
Waiting for the start of the income declaration campaign, in the middle of next year, to worry about what we owe the Treasury in the IRPF for the year 2019 is not a good idea.
The income statement is presented in the year following the one that is settled. Thus, from April to June 2020 you will present the 2019 Personal Income Tax. That is why it is now, in 2019, when you can make decisions to pay the fair amount in your statement.
If you want to pay less income taxes in 2019 follow these tips:
RENTAL INCOME
The Treasury increasingly controls the income obtained from the lease of real estate. With the rent you can get a negative return and with it a lower taxation.
If the result is positive you can:
– Anticipate this year expenses that you necessarily have to make
– Rent it as permanent housing, instead of by seasons or to students, so that you can apply the established reduction.
PERFORMANCE OF ECONOMIC ACTIVITIES
Depending on the performance of your economic activity in this year and the forecasts for the following year, it may be convenient to delay the last sales or services to 2020 or anticipate expenses to the last days of 2019.
Although the tax rate does not vary from year to year, deferring income from one year to another may be interesting.
CHECK THE PRACTICED RETENTIONS
Your payers will enter in Hacienda in January the last withholdings that they have practiced in 2019. They will also present the annual summary informing of the total withholdings entered in your name.
You should confirm with them the amount of this data before they declare it. Thus, you will avoid surprises when reviewing your tax information to submit your statement.
COMPENSE INCOME AND AFFORMS PROFITS AND LOSSES
Hacienda classifies the returns on your investments in:
– Income from movable capital (interest, dividends, insurance …)
– Capital gains and losses (transfer of funds, shares, real estate …)
Within each group it allows you to compensate the negative balances with the positive ones. If the final balance is negative, it can be offset by the positive balance of the other group.
In case you drag losses from previous years or if you have closed a loss operation this year, you can take advantage of them to generate other profits. This way you will avoid paying taxes for them.
PENSION PLANS
Contributing to a pension plan is the star measure to plan the income statement. It offers greater tax savings in personal income tax.
DEDUCTION FOR ACQUISITION OF HOUSING HOUSING
If you bought your usual home before January 1, 2013 with a mortgage, you can deduct 15% of the amount paid in the year. The maximum limit of the deduction base is 9,040 euros. Also included are home and life insurance associated with the mortgage.
INVESTMENT DEDUCTION IN NEW CREATION COMPANIES
It is the most profitable deduction after pension plans and the acquisition of habitual housing. The deduction for investment in new companies aims to encourage savers to support emerging projects. If you invest in a startup, you can benefit from a state deduction in the IRPF.
In addition, you will also not pay for the profit obtained when selling if you invest again in another new company. Most Autonomous Communities also contemplate an autonomous deduction. All are advantages to facilitate entrepreneurship.
DEDUCTIONS FOR DONATIONS
Christmas is coming and at this time we remember more about each other. Although generosity is important, deductions in personal income tax established for donations may encourage you to increase them. With less economic effort you can help others.
DEDUCTIONS OF YOUR COMMUNITY OR REGION
The IRPF has a state and regional section. Within the regional section, each Community can establish its own deductions based on its interests.
The most commons are:
– Rental deduction
– For home purchase
– By investment in new companies
– Maternity and adoption deduction
– For school expenses
IF YOU ARE ABOUT TO FULFILL 65 YEARS
At that age, retirement is approaching and certain investment decisions can be made. In those moments it is decisive to make a good fiscal planning:
1) Be careful when recovering your pension plan
When rescuing the pension plan you will have to pay for the investment and interest earned. You will do it as work performance, at the marginal rate you have at that time.
Rescue it when you are already collecting the public pension. In this way, the marginal rate applied to the benefit will be lower than that of the active salary. If you rescue him little by little, in the form of monthly income or with another periodicity, you may be able to pay a lien much lower than your current marginal rate.
2) Take advantage of the exemption of the capital gains obtained
a) By transmission of the habitual residence
Yes
