Do you know what to do before the end of the year to reduce your personal income tax?

As the end of the 2018 fiscal year approaches, we would like to remind you of some of the actions you can take to reduce your personal income tax settlement.

✔ Contributions to pension plans, company social security plans, insured pension plans, social security mutual funds and premiums paid to private insurance that exclusively covers the risk of severe or great dependency directly reduce the tax base, with the joint maximum limit deductible from the lesser of the following amounts: €8,000 per year or the 30% of the sum of the net income from work and economic activities received individually in the year, regardless of age.

✔ Contributions made to the social security systems of the spouse, when said spouse does not obtain net income from work or economic activities or obtains them in an amount less than 8,000 euros per year, reduce the tax base with the limit maximum of 2,500 euros per year.

✔ Early repayment of the mortgage or loan intended for the acquisition of the habitual residence is also deductible with limitations If you are entitled to the deduction for investment in your primary residence.

✔ Taxpayers over 65 years of age may exclude from taxation the capital gains that arise from the transfer of assets (not necessarily real estate), provided that the amount (total or partial) obtained from the transfer is allocated within six months to to establish an insured life annuity in your favor, with a limit of €240,000.

✔ If you are a property owner and plan to rent out a flat, remember that if it is used as a home, and not as an office, you will be entitled to a reduction in the net income obtained from it. 60%.

✔ The law also provides for deductions for donations and other contributions to non-profit entities, such as NGOs, foundations, and associations declared for public use.

New for this year is the improved deduction for investment in newly created or recently created companies. Taxpayers will be able to deduct 30% from the amounts paid for the subscription of shares or interests in these companies when certain requirements and conditions are met, and the maximum deduction base is €60,000 per year.