The new year begins with some significant tax changes. In this article, we'll explain some of the most important changes that may affect your tax obligations. Below, we've grouped the main tax measures that will take effect in 2024, categorized by tax type.
PERSONAL INCOME TAX
The deduction for energy efficiency improvement works in housing is extended until December 31, 2024.
In the rental of homes for primary residence (not for tourist rental), the reduction on rental income decreases from 60% to 50% for those contracts signed from January 1, 2024 onwards.
Taxpayers who purchase a plug-in electric vehicle between June 30, 2023 and December 31, 2024, will be able to apply a deduction of 15% of the purchase price up to a maximum of 20,000 euros of deduction base.
Any individual who registers as self-employed will be required to file an income tax return regardless of the income obtained.
The threshold for being required to file an income tax return when there is more than one payer of employment income increases from 14,000 to 15,000 euros.
The deduction base for donations, on which 80% can be deducted, is raised from 150 to 250 euros, and for the rest there will be a 40% deduction.
The exclusion limits for the objective estimation method (modules) are extended to €250,000 for all economic activities and to €125,000 when there is an obligation to issue an invoice. Likewise, the €250,000 limit for the volume of purchases is also extended.
The deadline for resignation and revocation of the objective estimation method ends on January 31, 2024.
CORPORATE TAX
The freedom of amortization is extended for investments that use energy from renewable sources, such as investments made in facilities intended for self-consumption of electrical energy, conditional upon compliance with a staff maintenance requirement.
The percentage of deduction from the full tax liability based on the deduction for donations, gifts and contributions with the right to deduction is increased from 35% to 40%.
VALUE ADDED TAX
The exclusion limits of the objective estimation method (modules) and the special regime for agriculture and livestock are extended to 250,000 euros for all economic activities and 125,000 euros when there is an obligation to issue an invoice.
The deadline for resignation and revocation of the simplified regime and the agriculture, livestock and fishing regime ends on January 31, 2024.
The tax rates of 5% for pasta and olive and seed oils and 0% for foods considered essential are extended until June 30, 2024.
With regard to the tax rates applicable to energy products, the tax rate for electricity increases from 5% to 10% for all of 2024, the tax rate for gas remains at 10% until March 31, 2024, and the tax rate for pellets from biomass and wood for firewood remains at 10% until June 30, 2024.
TEMPORARY SOLIDARITY TAX ON GREAT FORTUNES
The temporary wealth tax has been extended to 2024. This tax extends the €700,000 tax-free threshold to all taxpayers, regardless of whether they are residents of Spain.
CRYPTOCURRENCIES ABROAD
Individuals, legal entities, and other entities that have held, benefited, or been authorized to, or in any way had the power to dispose of, cryptocurrencies exceeding 50,000 euros at any time during the year in 2023, will have to provide this information by submitting form 721 before March 31, 2024.
If you require further information or have any questions, please contact us via email at ambit@mgiambit.com or at our offices.
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A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
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