We share below some changes in the Personal Income Tax (IRPF) in Spain.

Increase in the Reduction for Employment Income

One of the most notable measures is the increase in the reduction applicable to employment income, which rises from €6,498 to €7,302 annually. This modification is designed to especially benefit workers with lower incomes, as it reduces their taxable base and, consequently, their tax burden.

Modification of the Limits for the Obligation to Declare

The limits for the obligation to declare have also been adjusted:

• With a single payer: The limit remains at €22,000 annually.
• With multiple payers: The threshold is raised to €15,876 annually, provided that the sum of the second and subsequent payers does not exceed €1,500.

Changes in Deductions for Donations

Deductions for donations have been significantly expanded:

• 80% deduction for the first €250 donated to non-profit entities (previously up to €150).
• 40% or 45% deduction for higher donations, if made to the same entity for several consecutive years.

Update on Reductions for Housing Rental

For rental contracts signed from May 26, 2023, the reductions in net income from real estate capital vary:

• 90% if rented in stressed areas with a 5% reduction in price compared to the previous contract.
• 70% if rented for the first time to young people between 18 and 35 years old or to public administrations for social purposes.
• 60% for standard contracts.
• 50% if the above requirements are not met.

Deductions for the Purchase of Electric Vehicles

Taxpayers who purchase plug-in electric or fuel cell vehicles between June 30, 2023, and December 31, 2024, can apply a deduction of 15% of the vehicle's value. Additionally, there is freedom of amortization for these vehicles and associated charging infrastructure.

Exemptions for Aid Related to DANA

Extraordinary aid received by workers affected by the Isolated High-Level Depression (DANA) in 2024, intended to cover personal and material damages, is exempt from taxation in the IRPF, provided it is adequately accredited and paid between October 29 and December 31, 2024.

Greater Control over Income on Digital Platforms

The Tax Agency intensifies control over transactions carried out on digital platforms, such as the sale of goods and services. These platforms are required to report user operations through the new model 238, and taxpayers must ensure they correctly declare these incomes.