Updates on the 2024 tax campaign

The 2024 tax return campaign in Spain, corresponding to the 2024 tax year, began on April 2, 2025, and will run until June 30 of the same year. This period is crucial for business owners and entrepreneurs, who must stay abreast of the latest tax developments and specific features affecting their Personal Income Tax (IRPF) filing.

Main new features in the 2024 Income Tax Return

• Energy efficiency deductions: Deductions for projects that improve energy efficiency in primary residences remain in effect. These include deductions of 20% to 60% for projects that reduce heating and cooling demand or improve the property's energy rating.
• Deductions for the purchase of electric vehicles: Deductions of 15% of the purchase price are introduced for the purchase of electric vehicles, with a maximum base of €20,000. Deductions of 15% are also applied for the installation of charging infrastructure, with a maximum base of €4,000 per year.
• Increased deduction for donations: 80% deduction up to €250 (up to €150 in 2023). 40% deduction for amounts exceeding €250 (35% in 2023). 45% for recurring donations exceeding €250 (40% for donations exceeding €150 in 2023).
• Reductions in real estate capital income: The 60% reduction in rental income is maintained for residential leases signed before May 26, 2023. For subsequent contracts, a 50% reduction is established, and further reductions are also in place to promote social rentals (90% for new contracts with rent reductions in stressed areas; 70% for initial rentals or for social/institutional rentals; 60% for recently renovated homes).
• Changes to exempt income: Changes affecting compensation for civil liability for personal injury, severance pay, alimony, and DANA aid and subsidies.
• Payment via Bizum: For the first time, taxpayers can pay their personal income tax return via Bizum, in addition to traditional methods such as direct debit, direct debit, NRC, or branch payments. It's important to check the limits set by each bank before using this option.
• Corrective self-assessments: New boxes have been added to Form 100 of the Personal Income Tax (IRPF) (boxes 669 and 701) that allow taxpayers to correct errors in their return or disagree with the Treasury.

Specific considerations for business owners and entrepreneurs

• Direct estimate: The percentage of expenses that are difficult to justify returns to 5%. In addition, electric vehicles and charging stations that came into use in 2024 or 2025 will be freely depreciable. Deductions for investments in renewable energy have been expanded.
• Objective estimate (modules): The overall reduction in expenses that are difficult to justify is reduced from 10% to 5%.

Information note: Personal Income Tax Refunds for 2019 to 2022 for mutual society members: In accordance with the provisions of the 16th Federal Tax Decree of Law 7/2024, applications submitted prior to this date have been voided. Personal Income Tax refunds for 2019 to 2022 resulting from the application of the DT2LIRPF may be requested by submitting the new partial application form during the next four years (this year, the 2019 application will be requested).

Key dates and forms of presentation

• Submission deadline: From April 2 to June 30, 2025. Deadline for direct debit: June 25, 2025.

Recommendations for business owners and entrepreneurs

• Review deductions: It's essential to review the deductions applicable to your business, especially those related to investments in energy efficiency and electric vehicles.
• Documentation: Maintain detailed and up-to-date documentation of all income and expenses related to business activity.
• Professional advice: Given the complexity of tax regulations and the new developments introduced, it is recommended to seek the support of specialized tax advisors to ensure proper compliance with tax obligations.

The 2024 tax return campaign presents several new features that directly affect business owners and entrepreneurs. Staying informed and receiving the right advice is key to optimizing your tax return and efficiently complying with your tax obligations.

At Puigverd Assessors, we are committed to providing the support our clients need to successfully navigate this process.