Marriage or civil partnership: how your situation affects your tax return

Key differences between marriage and civil partnership in personal income tax

Although from a personal perspective both situations may seem similar, from a tax perspective they are not. The main difference lies in the possibility of applying the joint taxation, an option that is only available to married couples.

This means that two people with similar incomes can obtain different results in their tax return simply because of their marital status.

 

What is considered a family unit for income tax purposes?

The Personal Income Tax (IRPF) regulations distinguish between two types of family units:

• Marital family unit: formed by the legally married spouses and their children.
• Single-parent family unit: formed by one of the parents with their children.

Unmarried couples cannot form a joint family unit, which limits their tax options. In these cases, Only one of the members can file a tax return with the children., while the other must do it individually.

 

Joint taxation: the main advantage of marriage

Married couples can choose each year between filing individually or jointly.

When they opt for joint taxation:

• All the income of the family unit is added together.
• A reduction of €3,400 in the taxable base

This option is often particularly beneficial when there is a significant difference in income between spouses.

 

What happens in unmarried couples?

In the case of unmarried couples:

• There is no possibility of joint taxation as a couple
• If there are children, one of the parents can apply the regime of single-parent family unit, with a reduction of 2.150 €

This means that, in many cases, the tax burden is higher compared to a marriage, although the final result will depend on the specific situation of each taxpayer.

 

Other factors to consider

In addition to these reductions, all taxpayers apply the minimum staff of €5,550regardless of their family situation.

However, the possibility of combining this minimum with joint taxation is what makes the difference in terms of tax planning.

 

Tax planning: a decision that can make all the difference

The choice between marriage or civil partnership is not just a personal matter, it can also have relevant tax implications.

Analyzing each case individually is essential to determine which option is most advantageous, especially when there are children or significant income differences.

 

Do you need help with your tax return?

Every situation is different and small details can mean significant savings on your income tax.

If you have questions about how your family situation affects you or want to optimize your tax return, you can Schedule an appointment with our team and we will help you analyze your case.