Reduce the personal income tax bill with the Treasury It is one of the most effective tools and they are at taxpayers’ fingertips. Before the end of the year, there is still time to make decisions that will allow them to save for the next tax return, even if the personal income tax filing period does not begin until April.
While the drip and proposals of personal income tax reforms, both state and regional, The 24 million Spanish taxpayers have time to apply different measures to benefit from tax deductions and advantages in the next Income Tax campaign, as stated and listed in a guide prepared by the tax experts of TaxDown.
“The actions that we can carry out in the last fiscal quarter of the year are very important to avoid paying more in the income tax return that we make in 2026, corresponding to the year 2025 that is already ending” he explains. Enrique García Moreno, CEO of TaxDown. “Every year, Spanish taxpayers stop receiving up to 9,000 million euros in unapplied deductions. Hence the importance of reviewing all the ones that we can apply and letting ourselves be advised by experts,” he adds.
Take advantage of flexible remuneration
One of the simplest solutions is to opt for flexible remuneration. It is a remuneration system that allows the worker to divide the payment of his salary; part in cash and part through products or services that are contracted through the company, such as transportation credits. Not all companies offer these facilities, but Those that do allow employees to save an average of between €100 and €400according to TaxDown. Some flexible benefits may be restaurant tickets, public transportation facilities, daycare vouchers or health insurance, among others.
Donations to NGOs, foundations, unions or political parties
According to the parameters of the Tax Agency, Spanish citizens can deduct up to 80% of the first €250 they have donated to non-profit organizations. This percentage drops to 40% if this amount is exceeded. In this way, A taxpayer who regularly donates to this type of association can achieve potential savings of up to €200 on their income.
Contributions to pension plans
Contribute money to a pension plan It is another of the most common tax advantages to reduce our final personal income tax payment. It must be remembered that the savings limit in personal plans fell from 8,000 euros in 2020 to 2,000 euros in 2021 and to 1,500 euros in 2022, which remains the same today. Despite such a severe cut, which all experts ask to increase to encourage savings, there is still that little margin.
The maximum that can be contributed individually in 2025 cannot exceed €1,500, being up to €8,500 in the case of business contributions, those made by workers’ companies in employment pension plans.
Compensate losses with gains
Balancing losses and gains in the income tax return is essential and must be done within the legal framework. In general terms, it involves deducting lost investments from profits, paying taxes only on the difference. The Tax Agency allows you to offset both capital gains and losses (such as home and stock sales) as well as income from movable capital. In addition, capital gains can be offset with returns on capital assets of up to 25%.
For investors, it is important to sell early before the end of the year to be able to correctly record losses and work out the FIFO method well. And for those with overseas assets affected by the 720 and 721, you need to plan ahead.
Buying and selling homes and renting
Taxpayers interested in selling and buying a home in the remainder of the year can also take advantage of several deductions. This is the case of owners over 65 who want to get rid of their habitual residence, since they will not have any tax obligation with the Tax Agency from that agethus saving thousands of euros. Another process that has large personal income tax bonuses is the sale of a property, followed by the acquisition of another, since the profits obtained in this operation do not have to be declared. That is to say, if in this marketing an individual obtains a profit of €50,000, they do not have to present it to the Treasury, it would be a gain exempt from taxation.
Finally, Those landlords who have permanent tenants in one of their homes can deduct 50% of the income they obtain from renting.. For example, if a person has a rented apartment for €600 per month and earns €7,200 for 12 months, having a total of €200 in expenses, in general they would keep €7,000. However, as it is the habitual residence of another person, the 50% reduction would apply, paying tax only for €3,500 (€7,000 less 50%).
electric vehicle
Another advantage for taxpayers who are going to buy a car in the last quarter of the year is bet on an electric vehicle since the new state deductions approved by the Executive, added to the regional deductions of each Autonomous Community and the aid from the Moves III Plan, can save these taxpayers up to €7,000.
Save up to €10,000
But in addition to all of the above, there are many other actions that we can do before the end of the year to save on our personal income tax in 2026: request the maternity advance in advance, invest in startups or newly created companies, renovate our house betting on sustainability… and a long etcetera. In addition to review all applicable deductions for living in a specific Autonomous Community, such as, for example, those related to school expenses incurred by parents during the month of September.
