Donations to an NGO or flexible allowances can help reduce the tax burden for taxpayers
While taxpayers still have six months to go through the treasury, the last quarter of the year can be used to lower the personal income tax bill. According to a study by the company TaxDown, Spaniards still have time to save up to 10,000 euros on their next tax return by applying a few tips.
Experts point out the benefits that can be achieved with flexible pay. “It is a reward system that allows the employee to divide the collection of his salary, part in cash and another through products or services that he contracts through the company, such as the transport subscription,” the experts say.
Although not all companies offer this option, according to TaxDown calculations, those that do can save on average between 100 euros and 400 euros on the tax return.
The experts also recall the possibility of making a donation to associations such as NGOs or political parties, which allows to deduct up to 80% of the first 150 euros. If that amount is exceeded, the percentage drops to 35%. “For example, a taxpayer who regularly donates to these types of associations can realize a potential saving of up to 120 euros on his income,” they indicate from the platform.
Likewise, betting on a combined return also means a hefty bonus. According to data from TaxDown’s tax experts, a married couple can save up to $3,400 if they choose this method, a comparable amount if the tax return is filed including children, while unmarried couples can deduct up to $2,150.
On the other hand, divorced parents can also include alimony in their income tax, saving them on average between 200 and 600 euros, depending on the agreed support.
Another process that has significant income tax incentives is the sale of one property followed by the acquisition of another as the profits made from this operation are not required to be declared. “That is to say, if a private individual makes a profit of 50,000 euros from this commercialization, he does not have to submit it to the Treasury,” they indicate from TaxDown.
On the other hand, they remember that landlords who have permanent tenants in one of their homes are allowed to deduct 60% of the income they get from rent. For example, if someone has a rented apartment for $600 a month and earns $7,200 over 12 months, with a total of $200 in expenses, he would generally keep $7,000. However, since it is the habitual residence of another person, the 60% discount would be applied, paying only 2,800 euros in tax (7,000 euros minus 60%).
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
