When it is time to comply with your tax obligations, it is time to prepare your tax return. To do so, it is important to be aware of all the deductions to which you may be entitled to avoid overpaying when you file your tax return. Among the most important are pension plans, donations and those that each autonomous community applies.
These are the main deductions you can make on your income tax return
Deduction for contributions to pension plans
To benefit from the tax advantages of a pension plan, it is important to bear in mind that they are taxed as earned income and that the contributions made reduce the taxable base when the tax return is made.
A couple of years ago, deductions for individual private pension plans were reduced to a maximum contribution of 2,000 euros, while the joint reduction limit (participant and company) was raised from 8,000 to 10,000 euros for company plans to promote company contributions and correct the “regressivity” of these benefits, according to the government.
Deducting the mortgage on a home
To be able to deduct this expense, it is necessary to meet a series of requirements. The main one is that only homeowners who signed their mortgage before 1 January 2013 and who, in addition, have applied this tax relief on income before that year, can deduct the mortgage loan. If they meet this requirement, they can deduct up to a maximum of 15% of what they have paid during the year on a maximum base of 9,040 euros.
The Tax Agency also allows tax relief on products associated with the mortgage, such as home insurance, early repayments, incorporation costs, etc.
Contributions and dues to political parties, trade unions and professional associations
Individuals who have contributed money to political parties, trade unions and professional associations during the year can also deduct the amount paid.
The percentage to be deducted is 20% for membership fees and contributions to political parties, federations, coalitions or groups of voters up to a maximum of 600 euros per year. In the case of contributions to trade unions, the percentage that can be deducted is 20 and 35%, with no limit on the amount to be deducted.
Finally, fees paid to professional associations are tax deductible up to a maximum of 500 euros. In this case, membership must be compulsory to practise the profession.
Donations to non-profit organisations
If the taxpayer collaborates with a foundation or entity through financial donations in the form of monthly, quarterly or annual instalments, up to 80% of the first 150 euros can be deducted and 35% of what exceeds this amount.
If the taxpayer collaborates with an association, entity or foundation through financial donations, using monthly, quarterly or annual instalments, up to 80% of the first 150 euros can be deducted and 35% of what exceeds this amount.
Deduction for rental housing
The state deduction for renting can only continue to be applied for contracts signed before 2015. In many regions, regional deductions are still in force.
In the state deduction, the person who has rented the flat and is mentioned in the contract can deduct 10.05 % of the rent paid on a maximum base of 9,040 euros per year.
Regional deductions
Each autonomous community applies its deductions and, therefore, it is advisable to find out about the tax benefits in the region in which you live. Some common items that can be deducted are expenses for school materials, learning other languages, domestic help, adoption of children, care of dependents or investments made in the home, among others.
