2023 Income Tax campaign

By 21/03/2024

Key dates and updates for this 2023 income tax campaing.

Once again, we find ourselves facing a new Income and Asset campaign, in which this year the deadlines for filing the 2023 Income Tax are as follows:

  • General: from April 3 to July 1, 2024, both included.
  • In case of direct debit: from April 3 to June 26, 2024, both included.

 

Regarding changes or highlights from this year’s campaign:

 

Obligation to declare:

In terms of individuals required to file for this tax, it’s notable that in this campaign, the threshold for cases involving multiple payers has been raised to €15,000 (compared to €14,000 in the previous year). Conversely, for those with a single payer, the threshold remains at €22,000.

 

Self-employed individuals:

As of January 1, 2023, all individuals who have been self-employed at any point during the tax period, registered under the Special Regime for Self-Employed Workers, are required to file their declaration.

 

Maternity deduction:

Starting from January 1, 2023, mothers with children under the age of 3, eligible for minimum benefits per dependent, qualify for the maternity deduction, provided they meet either of the following criteria:

They are registered in the corresponding Social Security regime or mutual society at the time of birth or anytime thereafter, with a minimum period of 30 days of contributions in the latter scenario.

  • They receive any contributory or assistance benefit from the unemployment protection system at the time of birth (previously applicable only to self-employed or employed women).
  • They are registered in the corresponding Social Security regime or mutual society at the time of birth or anytime thereafter, with a minimum period of 30 days of contributions in the latter scenario.

 

Determination of real estate income:

This year, the deduction for rental of primary residence remains at 60% regardless of the lease signing date. However, it’s crucial to note that Law 12/2023, enacted on May 24, 2023, concerning the right to housing, modifies the application of this reduction starting January 1, 2024, for leases signed after May 26, 2023. To simplify:

  • For the declaration due in 2024, corresponding to the tax year 2023, the reduction remains at 60% for all cases.
  • For the declaration due in 2025, corresponding to the tax year 2024, applicable reductions may vary:
    • For contracts signed before May 26, 2023: 60%, as per regulations preceding Law 12/2023.
    • For contracts signed after May 26, 2023: reductions of 90%, 70%, 60%, or 50%, depending on the circumstances of the contract.

 

Energy efficiency:

 

Lastly, it’s worth mentioning that all initiatives aimed at promoting more sustainable energy consumption, whether in private residences or apartment complexes, have been extended until December 31, 2024. Keep in mind that these incentives enable deductions of 20%, 40%, or 60% on your income tax return.

As always, it’s crucial to recall that tax information originates from third-party sources and forms the basis for income tax computations. This allows for the identification of any disparities between tax and actual data. Consequently, it’s highly advisable to thoroughly review both tax information and the draft to prevent potential errors in settlement.

 

Need assistance with your income tax for this year? Contact us!

 

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