End-of-the-year tax tips to save on the next income statement

Euskaraz irakurri: Errenta-aitorpenean aurrezteko urte amaierako aholkuak

The tax year is drawing to a close, but there is still room to save on the income statement. The Organization of Consumers and Users (OCU) recalls some advice related to investments (pension schemes, capital gains and losses), but also more day-to-day matters (habitual residence, salary, etc.), in order to minimize the amount of taxes to be paid .

EITB Media spoke to Kepa Loizaga, OCU delegate in Euskadi, to find out the tips and save on the income statement.

The contributions to pension plans It can be interesting for those who receive income from work, but also from professional or business activities and from renting out real estate (as long as they also have income from the two previous types) for which they are taxed in personal income tax.

Wait until you’re 65 to sell your home. Gains from the transfer of habitual residence (where you reside continuously for three years) when you are 65 years of age or older are exempt from personal income tax. For this reason, the OCU recommends waiting until reaching that age to take advantage of the exemption.

The donations to NGOs, foundations and non-profit organizations deduct 80% on the first 150 euros, and 35% on anything above (this percentage rises to 40% if it is the third year it has been donated to the same entity and each donation is equal to or greater than the the previous).

Report any changes in the family. If a child is born, if there is a divorce, if there is a disability… The amount of the personal income tax deduction depends, among other things, on the family situation and is adjusted as far as possible in this way.

The mortgage repayment It’s another recurring way to lower the tax bill. Anyone who bought his financed main home before 1 January 2013 may apply a 15% deduction on what he paid on the loan in 2022, up to a maximum of 9,040 euros per year per statement. It is therefore a matter of repaying an amount up to that limit early in order to take full advantage of the deduction. The early termination fees charged by some entities are also deductible within 9040 euros.

Planning of capital gains and losses. If gains are made in 2022 and losses accumulate in other investments, you could materialize those losses to offset them against the gains.

The new deductions for personal income tax improving energy efficiency works from the house you can deduct 20%, 40% or 60% on a maximum basis of 5,000 or 7,500 euros, depending on the type of work. Remember that in order to be able to settle in the next declaration, you must have an energy efficiency certificate prior to the work and a subsequent certificate with a maximum date of 31 December 2022.