Major Changes in the 2025 Income Campaign
As the 2025 income campaign launches on April 8, taxpayers will encounter several significant updates designed to ease the tax burden for those with lower incomes and adjust rates for high-income savings.
New Deductions for Low-Income Earners
One of the standout features of this year’s campaign is the introduction of a deduction for earned income below €18,276. Specifically, individuals earning no more than €16,576, which aligns with the 2025 minimum interprofessional salary (SMI), will receive a €340 deduction. This initiative aims to alleviate the tax load on workers who earn modest incomes.
For taxpayers with earned income in the range of the minimum wage up to €18,276, the amount of deductible tax will gradually decrease as income rises, ensuring that assistance is tailored to the individual’s financial context.
Mandatory Tax Returns for Specific Income Levels
Under new regulations, submission of the personal income tax return will be obligatory for taxpayers earning over €22,000 from a single payer or more than €15,876 from multiple payers. Additionally, self-employed individuals and those receiving the minimum vital income need to file their returns, although unemployment benefits are exempt unless specific income thresholds are surpassed.
Increased Savings Tax Rate
The income campaign also introduces an increased tax rate for savings exceeding €300,000, rising from 28% to 30%. This change reflects a more progressive tax structure aimed at high-income earners in the savings bracket, which aligns with broader economic equity initiatives.
Continuing Deductions and New Reporting Requirements
Deductions for purchasing electric vehicles, enhancing energy efficiency in buildings, and contributions to pension plans remain unchanged. Taxpayers can also continue to benefit from deductions for investing in primary residences acquired before 2013 or making donations to registered non-profit entities.
Additionally, this campaign will feature new reporting categories that aim to streamline the tax filing process. Notably, self-employed workers will see changes that allow for clearer reporting based on direct estimation, as well as detailed declarations for capital gains from prizes.
Filing Deadlines and Methods
Taxpayers can file online starting April 8 using the Income Web program or the Tax Agency’s mobile app. The Direct Income service allows for straightforward processing without needing draft modifications. For those opting to file by phone through the ‘Le Llamamos’ system, services will be available from May 6. In-person submissions at tax offices will commence on June 1.
The final deadline for submitting declarations is June 30 for most taxpayers. Those wishing to apply for a domiciled payment must ensure their filings are completed by June 25.
Payment Options for Tax Amounts Due
If your tax return indicates a payable amount, you now have the option to pay via card or Bizum, enhancing convenience for many. Taxpayers can also opt for installment payments: 60% of the amount is due at the time of filing, with the remaining 40% payable by November 5.
In summary, the 2025 income campaign aims to support lower-income earners through new deductions while adjusting profit margins for higher-income brackets. With the introduction of streamlined reporting and flexible payment options, taxpayers can look forward to an easier filing process. Make sure to stay informed and take advantage of these changes to make the most of your tax return this year.