Retirees and their Fiscal Situation
Pensioners in Spain can breathe easier thanks to tax measures that offer them a significant relief in their tax burden. In a vital moment of transition, it is essential to know which are the exemptions and bonuses that can benefit this group.
Income Statement: Who must submit it?
One of the first questions retirees ask is whether they have to declare their income. Pensions, considered as income from work for personal income tax, do not oblige all pensioners to submit it. Only those who exceed 22,000 euros per year from a single payer are subject to this obligation. In the case of having multiple sources of income, the threshold is reduced to 15,000 euros.
In addition, additional income, such as real estate derivatives or capital gains, only need to be declared if an amount greater than 1,600 euros is achieved per year.
Exemptions and Deductions: An Economic Backrest
Among the most prominent measures for retirees, is the exemption in the sale of the usual home. Those who are over 65 and decide to sell their home will be able to enjoy this exemption, as long as the proceeds are used as a life annuity or through a reverse mortgage. This policy can be vital for many retirees looking to transform their wealth into income without facing the impact of personal income tax.
In addition, pensions for absolute permanent incapacity or great invalidity, as well as other benefits derived from exceptional situations, are exempt from personal income tax, which represents a great relief for those beneficiaries.
Fiscal Advantages in Local Taxes
The Treasury also provides benefits to retirees in local and regional taxes. It is common for councils to implement real estate tax rebates (IBI), which can reach up to 75% depending on the locality. These measures help ease the financial burden many pensioners bear.
In the same way, in several autonomous communities, you can find exemptions or reductions in inheritance and donation tax, providing additional support to this group.
Foreign Pensions: A Key Aspect
For retirees who receive pensions from abroad, it should be noted that this income is considered as coming from a second payer. This implies that, if this income exceeds 1,600 euros per year, they will be obliged to present the income statement, regardless of whether the total income is less than 22,000 euros.
Final Reflections
In short, tax benefits for retirees in Spain represent an opportunity to improve their quality of life. Knowing and taking advantage of these exemptions and bonuses is essential to effectively manage your financial situation, contributing to a more dignified and secure ageing.
