Tax benefits you might be overlooking
Tax benefits are fees that can be saved on the payment of certain taxes.
But some of them are perhaps not so well known.
In this article we discover some little-known ones.
Spain's lesser-known tax benefits
It should be noted that tax benefits can be applied by several administrations, which is why they are often unknown.
For example, the State indicates certain exceptional cases, but the Autonomous Communities and even local councils can also apply them.
In this case, we are going to refer exclusively to tax benefits, although there are also social benefits (in Social Security contributions).
It is worth knowing the main possibilities:
Tax benefits for individuals
The tax benefits for individuals are focused on reductions or exemptions from personal income tax (IRPF) or transferred taxes (inheritance and transfer tax).
These are the main options you can take advantage of:
1. Exemptions for the transfer of the habitual residence from 65 years of age onwards.
The owners of a property, when they sell it, have to pay Capital Gains Tax and the gain in Personal Income Tax (IRPF).
However, people over 65 years of age will be exempt from declaring the gain for IRPF when they sell their main residence.
2. Exemptions for income from a life annuity
The exemptions for the over 65s also apply to the transfer of any asset, not only the main residence, but also secondary dwellings or land. However, the maximum amount that can be deducted in the IRPF as an exemption is 240,000 euros.
3. Donations to non-profit organisations
Donations to non-profit organisations on a day-to-day basis have a deduction in the IRPF (Personal Income Tax). However, this amount has increased in recent years.
Specifically, for annual donations of less than EUR 250 per year, the exemption is 80 % (previously the maximum was 150).
On the other hand, for annual donations of more than 250 euros, the tax deduction is 40%.
This is a way of saving tax without forgetting the solidarity aspect.
4. Tax benefits for the Autonomous Communities in Inheritance and ITP
Inheritance Tax and Transfer Tax (ITP) are transferred to the Autonomous Communities.
This means that, depending on the Autonomous Community, the inheritance tax rebate may reach 100 % or that second-hand goods may be subject to a substantial reduction compared to the general rate of 6 % for the purchase of real estate.
It should be noted, however, that the regional regulations, being so variable, must be consulted on an individual basis.
Did you know that in the 2024 tax return there are 49 regional deductions in the Valencian Community?
Tax benefits for the self-employed and companies
Tax benefits also apply to the self-employed and companies, and can be a way to reduce costs. We highlight the following options for 2025:
1. Investments in R&D&I
Company investments in R&D&I receive various incentives from the government, including tax incentives.
For example, in some cases these investments can be deducted by 25 % and, in some cases, could reach 100 % of the amount in the Corporate Income Tax (IS) quota.
Here it is extremely important that you consult a tax and financial advisor because exemptions may vary from case to case.
2. Tax on Economic Activities (IAE)
The Tax on Economic Activities (IAE) also applies certain benefits to the self-employed and companies.
In general, the self-employed are exempt, but companies are also exempt during the first two years of activity.
In addition, as long as the turnover is less than one million euros, the exemption will also apply.
Finally, it should be noted that some municipalities also apply the exemption in a general or partial manner.
For example, some municipalities impose a special rebate or a rebate for job creation in the municipality.
3. Corporate Income Tax (IS) reliefs
During the year 2025, new benefits for corporate income tax will come into force, especially for SMEs.
Specifically, the tax payable will be reduced from the current 23 % for micro-enterprises to 21 % for the first 50,000 euros of profit and 22 % for the rest.
In addition, SMEs between 1 and 10 million euros will pay 24%, reducing their tax liability by 1%.
In addition, start-ups will pay a flat rate of 15 % for the first two years.
In a nutshell...
Regulatory changes introduce tax benefits that are sometimes unknown.
Therefore, having the help of a tax advisor is essential to take advantage of them.
At Asesoría Orihuela Costa we can help you to optimise your tax payments,contact us without obligation!
