We summarize in this article the best 20 2017 income deductions. We include in this expression different elements that can reduce the amount of the fee to pay for the Personal Income Tax, such as, for example, the expenses that can be subtracted from some income, the reductions for contributions to pension plans. pensions or children and deductions as the corresponding to the rental of housing.

Check here the list of the best 20 2017 income deductions that allow to reduce the quota of the Income Tax, in case it is convenient to apply some of them. This list includes deductible expenses, reductions and deductions.

  1. Deductible expenses of the payroll or pensions (Income from Work).

The expenses that we can deduct from income from work income are:

  • Social Security contributions or mandatory mutuals of civil servants.
  • Detractions for passive rights.
  • Quotes to schools of orphans or similar institutions.
  • Fees paid to unions.
  • Fees paid to professional associations, if membership is mandatory.
  • Legal defense costs in litigation with the employer.

  1. Deductible expenses of real estate (Real Estate Capital Income).

We can only deduct expenses if the property has been rented and we have received income derived from said rental. In this case, the deductible expenses are all considered as necessary to be able to rent the property, in addition to an amount for amortization of the property that is calculated as the 3% on the part of the value corresponding to the construction.

The expenses that are considered necessary to rent the property are:

  • Interest and other financing expenses. See limit.
  • Conservation and repair. See limit.

Limit: The maximum amount to be deducted for interest, other financing expenses, maintenance costs and repair costs, in total, may not exceed, for each property, the amount of income obtained. The excess can be deducted in the following four years.

  • Taxes and non-state surcharges
  • Balances of doubtful collection
  • Insurance contract premiums
  • Professional services, such as administration, surveillance, goalkeeping, garden care and others.
  • Expenses caused by the formalization of the lease contract and legal defense.
  • Services or supplies.
  • Amounts allocated to depreciation: 3% on the value of the construction (the greater between the cadastral value and the acquisition value).
  • The payments made due to claims occurring in the real estate that give rise to reductions in the value of the patrimony of the taxpayer or the improvements (works) made in said properties will not be deductible.

  1. Deductible expenses of financial investments (Returns of the Movable Capital).

Only the administration and custody expenses charged by the depository and management entities of the financial assets are deductible, without the deduction of any other expense concept being admissible.

  1. Deductible expenses for self-employed professionals (Income from Business Activities).

For activities in objective estimation regimes (indices or modules), the instructions established for calculating performance in each type of activity must be reviewed.

In the case of other activities, in direct estimation, they must follow a similar criterion to the deductible expenses in the Corporate Tax. For the expenses of business or professional activity to be deductible, three requirements must be met:

a) Have the invoice.

b) Be able to demonstrate that there is a direct relationship between spending and business or professional activity.

c) That the goods from which some expenses are derived are subject to the activity.

Some of the most common expenses have specific treatment or limitations, as developed in more detail in this article on "self-employed deductible expenses".

  1. Amounts to be reduced by taxpayer, descendants, ascendants and disability.

The program / application of the Income Tax, RentaWeb, applies a reduction in the calculation of the fee to be paid, depending on the family circumstances of the taxpayer. Certain amounts considered minimum or necessary for subsistence, should not be taxed by the tax, so the rate is applied and the resulting fee is subtracted from the fee to be paid.

We should not worry about this calculation, since it is applied automatically based on the information that we have indicated in the personal data section, such as the one related to our age, the children, the ascendants in charge or the disabilities. In any case, we summarize below the amounts that apply in said calculation, for information:

Minimum of the taxpayer

5.550 annual euros, in general

+ 1.150 annual euros, if you have more than 65 years

+ 1.400 annual euros, if you have more than 75 years.

Disability:

3.000 annual euros, for taxpayer disability equal to or greater than 33 by 100

9.000 annual euros, if the degree of disability is equal or superior to 65 by 100.

+ 3.000 annual euros, if you need help from third parties or reduced mobility.

Minimum by descendants

2.400 annual euros for the 1º.

2.700 annual euros for the 2º.

4.000 annual euros for the 3º.

4.500 annual euros for the 4º and following.

+ 2.800 annual euros, per descendant of less than three years.

(*) In case of death of descendant 2.400 euros

Disability:

3.000 annual euros, for disability of equal or greater descendant of 33 by 100

9.000 annual euros, if the degree of disability is equal or superior to 65 by 100.

+ 3.000 annual euros, if you need help from third parties or reduced mobility.

Minimum for ascendants

1.150 annual euros per each ascendant.

+ 1.400 annual euros, if you have more than 75 years.

(*) In case of death of the ascendant 1.150 euros

Disability:

3.000 annual euros, for disability of equal or greater ascendancy of the 33 by 100

9.000 annual euros, if the degree of disability is equal or superior to 65 by 100.

+ 3.000 annual euros, if you need help from third parties or reduced mobility.

  1. Reduction by joint taxation

In joint declarations of family units made up of both spouses and minor children living together, as well as those of legal age incapacitated by the court subject to extended or rehabilitated parental authority, the tax base will be reduced by 3.400 per year.

In joint declarations of single-parent family units, formed by the father or mother and all children under or legally incapacitated judicially subject to extended or rehabilitated parental authority living with one or the other, the tax base will be reduced by 2.150 per year.

  1. Reductions for contributions and contributions to social security systems

Among the best 20 2017 income deductions there are the reductions for contributions and contributions to the Pension Plans and similar (Social welfare systems, see specific regulations), the premiums paid to the insured pension plans, the contributions made by the workers to the corporate social security plans and premiums paid to private insurance that exclusively cover the risk of severe dependence or high dependence.

The joint fiscal limit of reduction for contributions to the aforementioned social welfare systems shall be the lower of the following amounts:

a) The 30 by 100 of the sum of the net income from work and economic activities received individually during the year.

b) 8.000 annual euros and, in addition, 5.000 annual euros for premiums for collective dependency insurance paid by the company.

These limits will be applied individually to each participant integrated in the family unit.

Regardless of the reductions made in accordance with the general regime of contributions to social security systems mentioned above, the contributions made to social welfare systems of the spouse can reduce the general taxable base of the taxpayer with the maximum limit of 2.500 euros per year, without that this reduction may generate a negative tax base, provided that the following requirements are met:

a) That the spouse does not obtain net income from work or economic activities, or obtain them in an amount less than 8.000 euros per year.

b) That the contributions are made to any of the social security systems discussed so far of which the spouse is a participant, mutualist or owner.

  1. Reductions for contributions and contributions to social security systems established in favor of persons with disabilities

Contributions made to pension plans, social security mutual funds, insured pension plans, corporate social security plans and dependency insurance policies in favor of people with disabilities give the right to reduce the tax base if the relative requirements are met to the degree of disability, the kinship and the limit of the contributions. Check requirements here.


  1. Reductions for contributions to protected assets of persons with disabilities

The figure of specially protected heritage is immediately and directly linked to the satisfaction of the vital needs of people with disabilities. Beneficiaries who are holders of protected patrimonies may exclusively be those affected by a mental disability equal to or greater than 33% or by a physical or sensory disability equal to or greater than 65%.

They will be entitled to reduce the general tax base of the contributor, the contributions to the protected estate of the person with disability made by taxpayers who have a direct or collateral relationship with the disabled person up to the third degree inclusive, or who are the spouse of the person with disability or who was in charge of the person with disability under the guardianship or fostering regime.

The contributions made in the terms discussed above, may be subject to reduction in the taxable base, with the following maximum limits:

a) 10.000 annual euros for each contributor and for the set of protected assets to which contributions are made.

b) 24.250 annual euros for all the reductions made by all persons who make contributions in favor of the same protected patrimony.

c) The positive amount of the general tax base of the contributor, once the reductions corresponding to the concepts discussed so far have been made.

  1. Reductions for compensatory pensions and annuities for food

Compensatory pension.

For the payer, the compensatory pension paid, fixed by judicial decision or agreed between the spouses in the regulatory agreement of separation or divorce approved by the court, reduces the general tax base, without it being negative as a result of this decrease. The remainder, if any, will reduce the tax base of savings without the same, either, can be negative as a result of such decrease.

For the recipient, the compensatory pension received from the spouse constitutes, in any case, work performance.

Annuities for food in favor of the children.

For the payer, the amounts paid as maintenance for the children by judicial decision do not reduce the general tax base.

For the children receiving such annuities, they constitute exempt income, provided that they are received by virtue of a judicial decision.

Annuities for food in favor of other people.

For the payer, the amounts paid for food in favor of other persons than the children, as long as they are fixed by judicial decision, reduce the general taxable base of the payer without being able to be negative as a result of this decrease. The remainder, if any, will reduce the tax base of savings without the same, either, can be negative as a result of such decrease.

For the recipient of the same, these annuities constitute income from work.

  1. Reductions for contributions to the social security mutual fund at fixed premium of professional and high level athletes

Professional and high-level athletes may reduce the general tax base in the amount of contributions made to the mutual insurance company at a fixed premium for professional athletes.

The annual contributions can not exceed the amount of 24.250 euros per year.

Contributions may be subject to reduction exclusively in the general part of the tax base. The lower limit of the following amounts will apply:

a) Sum of the net income from work and economic activities received individually by the taxpayer in the year.

b) 24.250 annual euros.


  1. Deduction for investment in habitual residence: Transitory regime

This deduction was deleted from 1 in January of 2013. However, taxpayers who had been deducted for their habitual residence prior to said date are allowed to continue enjoying the deduction in the same terms and with the same conditions as 31 in December of 2012. A state percentage (7,5%) and a regional percentage (7,5% or 9% for specific cases in Catalonia) are applied to the amounts paid during the year with a maximum of 9.040 €.

  1. Deduction for rent of the habitual residence: Transitory regime

This deduction was deleted with effect from 1 of January of 2015. However, taxpayers who had entered into a lease prior to that date and who had been entitled to the deduction in a tax period prior to the same date, may continue to enjoy the deduction in the same terms and under the same conditions existing to December 31 from 2014.

Without prejudice to the deduction for rental of habitual residence that, if applicable, each Autonomous Community has approved for the 2017 exercise, taxpayers may deduct 10,05% of the amounts paid for the rental of their habitual residence, provided that their tax base is less than 24.107,20 euros per year.

The maximum basis of this deduction is:

a) 9.040 euros per year, when the annual tax base does not exceed 17.707,20 euros.

b) 9.040 - [1,4125 x (Taxable Base - 17.707,20)], when the annual tax base is between 17.707,20 and 24.107, 20 euros.

  1. Deduction for investment in companies of new or recent creation

You can apply an equal deduction to 20% of the amounts paid for the subscription of shares in "new or newly created companies", which meet certain requirements, on a maximum of € 50.000 of investment.

  1. Deductions for incentives and incentives for business investment in economic activities in direct estimation

Taxpayers who develop economic activities in direct estimation may apply the incentives and incentives for business investment established or established in the Corporate Tax regulations with equal percentages and deduction limits, with some exceptions.

  1. Deductions for incentives and incentives for business investment in economic activities in objective estimation

In this calculation system, the incentives and incentives for business investment in the Corporate Tax regulations will only be applicable when this is established by regulation. During the 2017 exercise, the application of none of these incentives has not been established by regulation.

  1. Deductions for donations and other contributions

They are very common, among the best 20 2017 income deductions, donations made to entities of a social and cultural nature, included in the regulations, such as foundations and associations declared of public interest, give right to a deduction of 75%, for the first 150 euros and 30% for the amount of the donations that exceed the previous amount. If the donations made to the same entity are equal or exceed in amount with respect to the previous year, the deduction percentage of the second tranche is increased up to 35%.

When it comes to amounts donated to entities that allocate them to activities and priority patronage programs, the previous percentages will be raised by five percentage points.

On the other hand, the amounts donated to legally recognized foundations that report to the corresponding protectorate body, as well as to associations declared of public utility, not included in the scope of application of the 10 / 49 Law, are entitled to deduct 2002%, of December 23, tax regime of non-profit entities and tax incentives for patronage.

Finally, membership fees and contributions to Political Parties, Federations, Coalitions or Voters' Groups give right to a 20 deduction by 100, with a maximum base of 600 € per year.

  1. Deduction for income obtained in Ceuta or Melilla

For residents in Ceuta or Melilla for a period of less than three years, the deduction consists of the 50% of the state and autonomous community fees proportionally corresponding to the income obtained in Ceuta or Melilla.

Residents in Ceuta or Melilla for three or more years, may apply the same deduction also for income obtained outside these cities, in the tax periods initiated after the end of that term (3 years). For this, it is necessary that at least one third of the net worth of the taxpayer, determined according to the regulations of the Wealth Tax, is located in Ceuta or Melilla. The maximum amount of income obtained outside these cities that can enjoy the deduction will be the net amount of the income and capital gains and losses obtained in those cities

Non-resident taxpayers in Ceuta or Melilla may deduct the 50% of the state and autonomous community fees that proportionally correspond to the incomes computed for the determination of the positive taxable bases that would have been obtained in Ceuta or Melilla.

The amount of the deduction for income obtained in Ceuta or Melilla may not exceed in any case the 50% of the part of the state and autonomous community tax payments.

  1. Deduction for actions for the protection and dissemination of the Spanish Historical Heritage and the World Heritage

The 15 can be deducted by 100 from the investments or expenses made by the following concepts:

  • Acquisition of assets of the Spanish Historical Heritage, made outside the Spanish territory for its introduction into said territory, provided that the goods are declared of cultural interest or included in the General Inventory of movable property within one year from its introduction. The basis for this deduction in this form is constituted by the valuation made by the Board of rating, valuation and export of assets of the Spanish historical heritage.
  • Conservation, repair, restoration, diffusion and exhibition of the property of its property that are declared of cultural interest according to the regulations of the Historical Patrimony of the State and of the Autonomous Communities.
  • Rehabilitation of buildings, the maintenance and repair of their roofs and facades, as well as the improvement of their property infrastructures, located in the environment that is the object of protection of Spanish cities or of architectural, archaeological, natural or landscape ensembles and of the goods declared World Heritage by Unesco located in Spain.

You have to check compliance with the requirements established for each case.

  1. Autonomous deductions

Finally, we can not forget the best 20 2017 income deductions the specific deductions that apply to the residents of each autonomous community. To consult them click here.

Due to the large number of concepts dealt with in this article, it has not been possible to include all the requirements, limits and other elements that affect each type of deduction. Therefore, we recommend checking the specific regulations that regulate each deduction before its application.


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