Start of the 2021 Personal Income and Wealth Tax Campaign

The income and wealth tax campaign for the 2021 tax year begins today, and taxpayers can now file their tax returns. The deadline for filing is 30 June, although the deadline for direct debit tax returns is 25 June.

New developments in management

This year no major new developments have been introduced in terms of tax management, but the following can be highlighted:

- Cryptocurrencies: Box 1626 is introduced under the heading "balance in virtual currencies" in the section "other gains and losses deriving from the transfer of assets". Movements made with cryptocurrencies must be included in this box.

- Subsidies and public aid: The way in which public subsidies and aid that can be imputed in quarters, in the tax period in which they are obtained and in the following 3 periods, has been improved. Renta Web will inform of the amounts pending allocation in the next tax periods and this will be included in the tax data for the following years.

-Refunds to bank accounts in the SEPA zone: The payment and refund document of the Personal Income Tax form has been modified to allow the number of a bank account in a country or territory that does not belong to the Single Euro Payments Area (SEPA) to be entered in the case of returns with a refund result.

Regulation news

The main change is the introduction of new tax rate brackets for both the general and savings tax base. A new 47% bracket is introduced for taxpayers with general incomes over 300,000 euros and a new 23% bracket for savings income exceeding 200,000 euros.

Another of the new measures included in this campaign is the reduction of deductions for private pension plans from 8,000 euros to 2,000 euros per year.

On the other hand, it establishes the exemption from personal income tax for those affected by the eruptions of the Cumbre Vieja volcano, in La Palma, who have received aid for personal damages.

Lastly, new deductions ranging from 20% to 60% have been introduced to encourage work to improve the energy efficiency of homes.

New developments in wealth tax

The main novelty is the extension of the right to the application of the specific regulations approved by the Autonomous Community where the highest value of assets and rights is located for all non-resident taxpayers, not only for those residents in the EU or the EEA.

Likewise, the maximum marginal tax rate of the state scale is increased by one point, from 2.5% to 3.5%.

In addition, in the case of life insurance in which the policyholder does not have the right to exercise the right of full surrender on the date of accrual, the insurance will be computed at the value of the mathematical provision on that date (31 December of each year).

At Lozano Schindhelm we check if you are obliged to file your income tax and / or wealth tax return and, if necessary, we calculate, prepare and file the tax. All this in your language and with high quality standards, guaranteed by more than 15 years of experience in tax advice for residents and non-residents.

Autor: Fernando Lozano
Autor: Claudia Cascant
Autor: Andrea Quiles