B Law & Tax
06 March 2024

FISCAL CHANGES IN THE NEW YEAR: WHAT’S IN STORE FOR TAXPAYERS IN 2024?

The year 2024 brings significant fiscal changes that will impact taxpayers. From adjustments in taxes on rental properties to modifications in income tax declaration obligations, including the reinstatement of the Wealth Tax in certain regions and expansions in deductions for energy efficiency improvements and donations. Here are the key transformations that may affect taxpayers:

More Taxes for Property Landlords:

One notable reform is the reduction in the tax benefit applicable to net rental income for primary residences, decreasing from 60% to 50%. This means that most landlords will pay higher taxes starting January 1, 2024, for rental contracts signed thereafter.

Changes in the obligation to file the Personal Income Tax return:

The 2023 Income Tax campaign will run from April 3rd to July 1st, 2024. New income thresholds determine declaration obligations, with gross employment income being set at 22,000 euros. Additionally, self-employed individuals will need to declare if they were registered at any point in 2023 under the Special Regime for Self-Employed Workers or the Special Regime for Maritime Workers.

Wealth Tax:

Madrid and Andalusia reintroduce the Wealth Tax to offset amounts that the central administration would collect through the Solidarity Tax on Large Fortunes if the tax benefits were maintained.

Deduction for Energy Efficiency Improvement Works:

Temporary deductions in the national income tax quota for rehabilitation works contributing to energy efficiency improvements in primary or rental residences have been extended.

Increase in Deductions for Donations in Income Tax:

From January 1st, 2024, the base for applying deductions for donations to nonprofit entities increases from 150 to 250 euros. The deduction percentage rises from 35% to 40%, reaching 45% if a donation of the same amount was made to the same entity in the previous two years.

These fiscal changes adapt to new economic and social realities, aiming to balance revenue with the promotion of specific activities.

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