Being in the middle of a campaign for income tax returns for natural persons living in Spain, we thought it would be appropriate to write some lines about the main novelties of the 2018 income tax that must be prepared before the 30th of June 2019.
Fundamentally, they include, among the exemptions, maternity and paternity benefits, as well as the benefits received in equal situations.
This amendment is in effect for 2018 and previous years that have not prescribed.
Income exemptions from training grants
The exempt amount is raised to 6,000 euros for training scholarships. The exempt minimum increases to 18,000 when transport and accommodation expenses are compensated, including up to the level of Master. The exemption for scholarships for PhD studies rises to 21,000 euros, and when these are taken out of Spain, it is increased to 24,600 euros.
Payments in kind
The exempt amount is increased to 11 euros per day related to restaurant vouchers and food vouchers.
Deductible expenses of net income from economic activities
The taxpayer’s living expenses incurred in the development of economic activity are deductible, with the following conditions:
- They are paid for catering and restaurants.
- They are paid using electronic means of payment.
- They are paid when you travel but do not stay overnight, if the limit of 26.67 euros/day is not exceeded when in Spain, and 48.08 euros/day abroad. These limits will be doubled if you need to stay overnight.
Women with children under three years of age who are entitled to apply for the minimum for descendants, and who carry out an activity as self-employed or an employee for which they are registered with the corresponding social security or mutual insurance agency, can currently reduce the tax rate up to 1,200 euros per year for each child under three years of age.
The novelty is that you can deduct an additional 1,000 euros when the taxpayer who is entitled to the deduction has paid custody costs for the child under three years of age during the tax period in authorised day care centres or nursery schools.
This amount, even if it is negative – the taxpayer is paid by means of the IRPF tax return even if it has not been withheld – could not be obtained in advance.
This increase may be applied in the tax period in which the minor reaches three years in relation to the expenses incurred after reaching that age until the month before that in which the second cycle of early childhood education can begin.
Obligation to declare
On the one hand, those taxpayers who obtain small amounts of capital gains derived from public subsidies that exempt them from the obligation to file tax returns to the recipients of certain income (work – with limits–, yields of real estate capital and profits – retained and with limits –, and other income, including public aid as a novelty) limited to 1,000 euros are exempt from the obligation to file the tax return.
In addition, taxpayers who receive income from work from more than one payer will not be required to declare it if such income does not exceed 12,643 euros. In 2019 that limit has been increased to the sum of 14,000 euros.
Deduction for investment in companies of new or recent incorporation
Taxpayers may deduct 30% (previously 20%) of the amounts paid in the period in question for the subscription of shares or participations in newly or newly incorporated companies.
The maximum deduction will be 60,000 euros (previously 50,000) per year.