Lowering the tax bill

for next year is possible if you take into account various tips on the personal income tax return.

Recommendations to reduce the bill with the Treasury

You can still take advantage of this final stretch before the tax period opens and reduce the personal income tax bill.

Thus, following this decalogue of tax advice, as a taxpayer, you can save more than 3,000 euros on average on your income tax return and take advantage of the latest tax reform.

Pension plans

The first of the tips is related to the pension plan.

The contributions you make in a pension plan or in a review plan insured in recent months will be suitable to reduce the bill with the Treasury.

While it is true that there is, since the new tax reform,a reduction in the monetary limit that is allowed to pay, which has resulted in a decrease from 10,000 to 8,000 euros.

If you want to make a deduction based on this premise, the contribution you have made must not exceed 30% of the total net income from work and economic activities. In addition, in this case, age is not taken into account.

It will also be possible for you to make this reduction in the tax base when these have been made by your spouse.

However, in this case, you need to keep in mind two requirements:

  • Receive an annual amount of net income from work or economic activities that does not exceed 8,000 euros.
  • Contribution limited to 2,000 euros compared to 2,500 euros prior to the current reform.

Buying a home


As for the purchase of a home, if this is usual or in the case that you had made a payment prior to the beginning of 2013 for its construction, you can deduct that amount if you have been having deductions for it in 2012 or previous years.

The maximum deduction will be 15% of what, as a taxpayer, you invested and the limit of this investment is set at € 9,040.

If there were capital gains, it will also be possible to neutralize that payment; and, if, in the main residence you are over 65 years old, you will not be taxed for it, with the limit of € 240,000.

Stock market investments

On the other hand, being a stock market investor can generate losses if you compensate for the losses that have been produced by an investment fund.

Quotas to solidarity entities and political parties

You can also save on personal income tax the amounts you have donated to solidarity entities if you keep the supporting documents, as well as to political parties, with the limit of 600 euros.

Savings plans

If at least five years have elapsed since you made the first contribution to a savings plan, there may be an exemption from positive returns.

Taxpayers living abroad

If you had to travel outside of Spain to work in a company, you can reduce your tax bill.

The income you obtain will be exempt, so you can save on personal income tax, as long as you do not exceed 60,100 euros. An exception to this limit will be given if you pay taxes in Navarre, since the maximum will be € 30,000.

Reduction in the tax bill for entrepreneurs

You can reduce your personal income tax bill, if you are an entrepreneur. As of 2013, tax advantages were established for people who wanted to invest or contribute capital to create new companies and companies, thus having incorporated you into their shareholding in the three years since its incorporation.

In addition, the aforementioned investors would have to keep their stake in a range between 3 and 12 years.

the investments may be made reduce the tax bill by 20% and will be counted in the state personal income tax of the investment that has been made when subscribing to the shares or shares, with a limit of EUR 500 000 per year and a participation not exceeding 40 %.

In addition, it should be noted that you will have a complete exemption from the capital gain when you decide to leave the company, if you reinvest again in another newly created company, so you can reduce the invoice with the Treasury.

You are still in time to be able to lower the tax bill, following these tips during the final stretch before the settlement period opens.

If you take into account all the factors of your tax return,it will be very easy for you to save on personal income tax when facing the realization of your taxation as a taxpayer.