With the end of the year, the possibility of adopting measures of all kinds that save us money in our income statement for this year that we will have to present in a few months is also over.

It is the moment in which we have to remember the economic operations carried out so far this year. It is also convenient to dust off the 2016 income tax declaration and notes, and those of the three previous years to see if we leave any outstanding negative balance that we can take advantage of in the next declaration.

It is definitely time to see what operations we can do and which ones are best for us to minimize the final payment of personal income tax.

The planning possibilities in this aspect and the specific actions that we can carry out will depend on the taxpayer profile. Next we are going to see some general ideas to take into account when making our statement.

If you are an employee:

  • Modification of the employment contract: To include payments in kind that are not taxed, such as: the restaurant card, the transport card, the nursery voucher or medical insurance for the family. In the case of public bodies, it is not possible to replace monetary compensation with compensation in kind.
  • If you have been fired from the company: And you have received compensation that does not exceed that required under the Workers' Statute and its implementing regulations, you should not allocate any amount if it does not exceed €180,000.
  • If you are entitled to receive unemployment benefit and want to start an economic activity: It is convenient for you to request the payment of the benefit in the form of a single payment. In this way, you will not be taxed for it, as long as you do not cease the activity started during the following 5 years.

Have you received any help:

It is important to differentiate those that are exempt from those that are not. The benefits established by the autonomous communities as a minimum insertion income to guarantee subsistence economic resources to people who lack them, up to the maximum amount of 1.5 times the public indicator of multiple effects income (IPREM) will be exempt. .

  • Aid that pays: Plan Pive, Plan Movea, it is convenient to know the conditions of the plans before requesting them.
  • Maternity benefit: The administrative criterion considers it as non-exempt income, although some Court does not think otherwise.

Has conveyed a home:

This operation generates an alteration in the taxpayer's patrimony that will give rise to a patrimonial gain or loss, to be included in the tax base of the savings.

  • If you have obtained a capital gain as a result of the transfer: consider the possibility of reinvesting the amount obtained in the acquisition of another, so as not to be taxed on said income.
  • Once you reach the age of 65: If you want to obtain liquidity by selling your habitual residence, you will not have to pay taxes on the capital gain generated.

Deductions for habitual residence:

One of the tax benefits most used by taxpayers is the deduction for investment in habitual residence, currently extinct but which survives thanks to its transitional regime. So all those taxpayers who have acquired their habitual residence before 2013, as long as they have taken the deduction beforehand, are lucky enough to still be able to take advantage of this deduction.

  • You can generally: Deduct in 15% from the amounts paid (commented above) with a maximum deduction base of €9,040.
  • When calculating the tax cost of your 2017 Income: You can reduce that amount by exhausting the limit of €9,040 between interest and amortized capital of the loan you used to pay it and get a maximum deduction of €1,356. If you are married in a community property regime, being the habitual residence of both spouses, it may be interesting to declare individually to enjoy a deduction base of up to €18,080 and deduct €1,356 each.

You have a flat for rent:

If you have leased properties, you must include as income the amount, excluding VAT, that the lessee must pay for all concepts. In relation to repair and conservation expenses, provided that the repairs and conservation actions carried out are aimed exclusively at obtaining future returns on real estate capital, they will be tax deductible even if no income had been obtained in said periods.

  • If you are going to rent an apartment: In principle, you will be interested in renting it to a natural person for permanent housing rather than for an office, so as not to lose the 60% reduction in net income. If you rent the apartment seasonally, you will not be entitled to this reduction.
  • If you are the owner of a rented property and have to undertake some expense related to it in 2017: As long as income exceeds expenses, you should anticipate expenses. In this way, part of the taxation will be deferred to 2018.
  • When determining expenses: Do not forget to include the amortization of 3% of the greater between the acquisition price or the cadastral value of the construction.

Has financial investments:

Financial investments are considered full returns on movable capital and include returns obtained from participation in own funds of any type of entity, those obtained from the assignment of capital to third parties, those derived from the transmission, reimbursement, amortization or conversion of any kind of assets from external funds or capital, as well as those from capitalization and life or disability insurance contracts.

  • If you own shares in a listed entity and are given pre-emptive rights that you sell: must pay taxes for the amount obtained by them.
  • It is time to contribute to your pension plan: Pension plans, together with PPAs, are the only financial instrument that has a reduction in the tax base in personal income tax, up to a limit of 8,000 euros regardless of age, or 30% of net income from work.

Are you an entrepreneur or professional?

Full income from economic activities will be considered to be those that, coming from personal work and capital together, or from only one of these factors, involve, on the part of the taxpayer, the self-management of means of production and human resources or one of them. of both, in order to intervene in the production or distribution of goods or services.

  • If you have rented a home for tourist use and provide services typical of the hotel industry: The income derived from them will be classified as income from economic activities and therefore the reduction in income from real estate capital cannot be applied.
  • If you are an entrepreneur or professional working from home: You can deduct the ownership expenses of the property in proportion to the square meters that you allocate to the activity, such as the IBI, the community of neighbors, taxes, etc. Likewise, you can deduct a percentage, depending on the time you allocate to the development of the activity, of the part of the house used in it on the expenses of supplies.
  • If you are a businessman or professional and travel for work reasons outside your home: And maintenance has to be paid, this expense can be deducted as long as it is justified by an invoice and is necessary.

You still have a few days to carry out operations that improve the result of your income statement for this year 2017. If you need help, consult our tax experts who will advise you based on your personal circumstances. consult HERE.

 

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