All the news and deadlines for filing the 2023 income tax return

It has become a tradition. Around this time of the year, we always prepare an article about the changes and updates associated with the next year’s income tax return.

In order to maintain this custom – and with a new income tax return campaign about to start – at KM2 Servicios Inmobiliarios, we already have ready our summary with all the news and deadlines you need to know.

What are the novelties in the 2023 income tax return?

1. All the self-employed are obliged to declare the personal income tax (IRPF).

Previously, the self-employed only had to file the income tax return if their annual income exceeded 1,000 euros. From now on, they will have to file it regardless of what they earn.

For employees, the threshold for exemption from the obligation to file a tax return is raised. Those who receive income from more than one payer will only need to report if they exceed €15,000 per year.

2. Contributions to social welfare systems are maintained.

The deduction limit for contributions to individual pension plans is €1,500. It can be increased up to 10,000 € with company contributions to complementary programs or employee contributions.

However, the ceilings will vary according to the type of plan, without allowing the established limits to be exceeded.

3. Allowances are granted for residential leases.

The 60% reduction on the net income obtained from renting real estate as a habitual residence will be maintained.

The additional incentives for rentals in stressed areas – introduced by the new Housing Law – will be applied in the 2024 tax year and will be reflected in the 2025 tax return.

4. Deductions for earned income are increased.

Law 21/2022 of December 23, within the General State Budget for 2023, modified the tax system. As a result, deductions for earned income will be increased to a maximum of 19,474.50 €.

The following are considered as earned income:

1. Unemployment benefits.
2. Contributions to pension plans.
3. Compensation for representation expenses.
4. Wages and salaries (without per diems and travel expenses).

The new deductions applicable, provided that the labor income does not exceed 6,500 € per year without counting tax exemptions will be:

1. Up to 14,047.50 € per year, 6,498.00 € will be deducted.
2. Between 14,047.50 € and 19,747.50 €, the deduction will be adjusted by subtracting the result of multiplying 1.14 times any income over 14,047.50 €.

5. The amount to be deducted for businessmen or professionals is increased.

The aforementioned Law 31/2022 has increased the deductions for entrepreneurs and professionals using the direct estimation method, in line with the improvements granted to workers.

For those who choose the simplified direct estimation – a method that facilitates the tax calculation for self-employed and small businessmen – the percentage of 7% is established for deductible provisions and expenses of difficult justification, without the need to detail these disbursements.

In addition, those who use the objective estimation system, which allows calculating the net income and taxation in a simpler way and without the need to keep a detailed record of all profits and expenses, will have a 10% reduction on the net income calculated by modules for the year 2023.

6. The deductions for works to improve the energy efficiency of houses are extended.

Deductions for improvements in the energy efficiency of homes will be extended until December 31, 2024, under these conditions:

• 20% up to €5,000 per household annually, for works that reduce energy demand in heating and cooling by 7%.

• 40% up to €7,500 per property each year, for initiatives that reduce the use of non-renewable primary energy by 30% or achieve an “A” or “B” energy rating.

• 60% with a cap of €5,000 (and a minimum accumulated expenditure of €15,000), applicable to the energy rehabilitation of residential buildings.

These deductions apply to the habitual residence, rented properties or properties intended for rent, with the condition that they are rented before December 31, 2025.

7. The reduction for the purchase of electric vehicles and installation of recharging points is maintained.

Those who purchase electric vehicles from June 30, 2023 to December 31, 2024 and do not use them for business purposes, will be eligible for a tax deduction of 15% of the purchase price, with a ceiling of 20,000 euros.

This deduction is also valid for advance payments of 25% or more of the total value, provided that the remaining payment and the acquisition are completed before the end of the second tax year following the advance payment.

Regarding the installation of recharging points for electric vehicles, a deduction of 15% will be applied on the cost of installation, effective in the year it is carried out, up to a maximum of €4,000, after deducting the public aid received.

8. A deduction is offered for maternity

The tax incentive for employed or self-employed mothers, as well as for same-parent families or legal guardians in specific situations, will continue.

The deduction can reach up to €1,200 per year per child. In addition, if the registration with the Social Security or the corresponding mutual insurance company occurs after the birth, a supplement of 150 € will be added in the month in which the minimum of 30 days of contribution is completed.

What are the deadlines for filing the income tax return?

The Official State Gazette (BOE) has already published the key dates, which include:

• March 19: availability of the draft tax return.

• April 3: start of the tax campaign, accepting online returns through Renta Web or the mobile App, with electronic ID, digital certificate, Cl@ve PIN, or reference number.

• April 29: opening of the appointment service for scheduling telephone calls.

• May 7: start of telephone service for filing returns.

• June 3: deadline for filing returns with direct debit payment.

• June 28: last day to make appointments online or by phone.

• July 1st: closing date of the income tax campaign.

Do you need guidance on any aspect related to the real estate market? In KM2 Servicios Inmobiliarios we offer you our solid team of professionals.

We are ready to offer you an attention adapted to your needs and advice of the highest level.

Do not hesitate to contact our team in our real estate agencies in Barcelona or Madrid, we are waiting for you!