The Basque councils plan to increase the rate for incomes above 240,000 euros to 27%

The Basque tax reform proposal from the three provincial councils increase the rate to 27% for incomes above 240,000 euros with the goal that “the tax burden grows as taxpayers’ incomes grow.”

The preliminary draft that the Guipuzcoan provincial treasury made public this Monday contains three relevant measures. Firstly, the non-obligation to assess the tax itself increases to 19,000 euros per year. The bonus is consistently increased for a professional income of less than 23,000 euros.

The other measure to highlight is the new one savings rate proposal, which aims to “bring the tax burden closer to the principle of progressivity, reduce the burden on small savers and increase the burden on the highest savings incomes.” This is what the five sections of the already existing savings scale and one more will be added, increasing the maximum rate of the scale to 27%.

For example, for people with an income up to 15,000 euros, a rate of 20% will apply, for 30,000 a rate of 22%, from 30,000 to 60,000 euros 23%, from 60,000 to 120,000 euros, from 120,000 to 240,000 euros 26% and 27% from 240,000 euros and more.

Taxpayers who obtain income derived exclusively from gross income from employment will not be required to assess themselves, with a limit of 19,000 euros per year in individual taxation, and from gross income from capital and capital gains, including in both cases the exempt income. which together do not exceed 1600 euros per year.

In there residential areais considering an increase in the general bonus for landlords to 30%, which will be 50% in the case of properties rented under the Basque Government’s Bizigune program or for those renting houses in areas classified as housing problems.

In addition, for these homes intended for the stable rental of a main home, a deduction for protected rehabilitation is introduced for actions in the rented home.

From the tenant’s perspective, both the deduction percentage and the maximum amount are increased for large families, single parents, young people, people with disabilities and dependencies and victims of domestic or gender violence.

With regard to the acquisition of habitual residence, several measures are being implemented to support the acquisition of habitual residence, with particular emphasis on young people. For people under the age of 36, the period for using amounts deposited in residential accounts will be increased to 10 years and both the percentage and the amount of the deduction will be increased.

The deduction limit for the year of acquisition is also abolished and the exemption established in the inheritance and gift tax is included for donations of an amount equal to or less than EUR 30,000, with the aim of making it easier for young people to access their habitual residence with the financial assistance of family members, “without this having any tax consequences for the donee.”

The tax on ownership transfers and documented legal acts to make the application of the reduced rate of 2.5% more flexible, such that the reduced rate may be applied more than once, as long as the purchasing party does not own another home in the same municipal area in which the home is located.

Accusations

This Monday, the provincial councils opened the public hearing on the tax reform so that citizens can submit their accusations against this document.

The content of the reform is very similar across the three areas as the principle of tax harmonization should be maintained, although there are important differences in the case of claim deadlines.

That way, inside Alava The deadline for the hearing is from November 18 to 29, 2024, both inclusive. For his part, in Bizkaia This period remains open until December 3 Gipuzkoa It lasts until December 15th.