The tax advantages in the 2022 Income Statement for those over 65 years of age


Next April 11 begins the campaign of the Income statement 2022, that is, the one corresponding to the previous year, in which the taxpayers will have to catch up with the tax authorities and make the corresponding draft. This first date is for its completion online, while for send it by phone or in person we will have to wait for the opening later, prior appointment request.

This year The Treasury incorporates some novelties in the Income statementsuch as those social benefits received by Social Security, that is, the contributory pensions. Specifically, the Tax Agency includes “pensions and passive assets received in the public Social Security schemes and other public benefits for situations of disability, retirement, accident, illness, widowhood, or similar”.

We must also take into account that people with income obtained in the taxable year greater than 22,000 euros, if they were received by a single payer. Likewise, the limit will be reduced to 15,000 euros when there is two or more payersprovided that the money received from the second payer does not exceed 1,500 euros per year.

What are the tax advantages for retirees in Income

From Gesthaa union of technicians from the Ministry of Finance, warn that “Those over 65 years of age must know in depth the keys, deductions and exempt income in Personal Income Tax (IRPF), so that they can get the most out of your next returnif they are obliged to present it”.

Sale of habitual residence

From the General Council of Economists of Spain they specify to La Información that they are exempt from including in the draft the capital gains from the transfer by persons over 65 years of age of their habitual residence, as well as for people who are in a situation of severe dependency or great dependency according to the Law for the promotion of personal autonomy and care for people in a situation of dependency. In addition, it will not be necessary to reinvest the amount obtained in the purchase of another habitual residence. In this sense, a property that has been used as such for more than three years will be considered a habitual residence.

Minimum personal income

In general, the personal minimum will be 5,550 euros. For taxpayers aged over 65 years a total of 1,150 euros (6,700 euros per year) will be added to this amount, and the over 752,550 euros, that is, the previous 1,150 added to an added 1,400 euros (8,100 euros per year).

Reinvestment of life annuities

Those capital gains that are revealed on the occasion of the transfer of assets by taxpayers over 65 years of age, provided that the total amount obtained is used, within a period of 6 months, to constitute an insured life annuity in their favour. The total maximum amount that for this purpose may be used to constitute life annuities will be 240,000 euros.

family business donations

guarantee the generational change of the family business It also enjoys certain tax advantages. If the parents donate the business, or the shares or shares of the family business to their children, as a consequence of this donation, a capital gain in personal income tax from donors. This gain can be exempt, yes, it must meet a series of requirements. As they point out in the Navas & Cusí law firm, the marked conditions are:

  • That it is not a patrimonial entity whose main purpose is the management of movable or real estate assets and You must have more than 50% of your assets linked to an economic activity.
  • That partner participation that intends to access this tax benefit in the capital of the entity is at least 5% individually. Or 20% with your spouse, ascendants, descendants or second degree collaterals.
  • That any of the members of the aforementioned family group exercise management functions in society and obtain most of their income from work and economic activities through them.

In the case of donation of the shares or participations, it does not generate a tax impact on the donor’s personal income tax and would benefit from the Donation Tax of the 95% reduction of the base for granteesbut other extra requirements must be met:

  • The donor has 65 or olderor who, being less than said age, is in a situation of permanent disability, in a degree of absolute or great disability.
  • the donor resign from management duties in the family business. This does not oblige you to transfer all of your shares or shares in the company.
  • The donor has the right to apply the family business exemption on your Wealth Tax.

Pension plans

The redemption of a pension plan in the form of capital can enjoy a 40% reduction on benefits corresponding to the premiums paid prior to the year 2007. It is allowed to reduce from the personal income tax base the contributions made to pension plans or other social welfare systems, although the maximum individual contribution cannot exceed 1,500 eurosthis limit was 2,000 euros in 2021. It may be increased by another 8,500 euros for business contributions to an employment system.

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