The role of an accountant in Palma de Mallorca is crucial for helping taxpayers understand and comply with their tax obligations, particularly regarding income tax returns. Knowing who is exempt from this tax duty is vital to avoid unexpected situations and to stay updated with current legislation. Staying informed not only reduces stress and confusion but can also save you time and money.

If you are considering to File your personal Income Tax in Palma, it is important to clearly understand any specific situations that could exempt you from this responsibility. In the 2024 tax year, there will be different deadlines and methods available, making it essential to be aware of your obligations.

Key Dates for the 2024 Tax Campaign

The main dates for this tax season start on April 2, when online tax return submissions will be available. For those opting for phone assistance, May 6 marks the first day to file via telephone, with appointment scheduling starting on April 29. In-person filings begin on June 3, and appointments for this option can be booked from May 29. The final deadline to submit the 2024 tax return is June 30.

Who is required to submit the income tax declaration in 2024?

Individuals who received unemployment benefits in 2024 will not be required to file their tax returns until next year. However, as in previous years, those who have benefited from the minimum vital income or are self-employed must file, regardless of their earnings or profits.

For other taxpayers, those with an annual income exceeding €22,000 from a single payer must submit their tax returns. Additionally, individuals with earnings above €15,876 from multiple payers must file if the sum of the payments from the second and subsequent payers exceeds €2,500.

Exempt Incomes and Available Deductions

Extraordinary payments made by employers to workers and families to cover personal or material damages caused by the DANA disaster are tax-exempt. However, affected individuals must provide proof of damages with a certificate from an insurance company or a public institution.

Regarding deductions, one of the most significant updates is the extension of the deadline until December 31, 2024, for deductions related to home and residential building energy efficiency improvements. Additionally, tax deductions for electric vehicle purchases and charging station installations are also extended. Donations to non-profit organizations will benefit from an 80% deduction for the first €250 donated and up to 45% for amounts exceeding this threshold.

As every year, it is advisable to check regional deductions based on the taxpayer’s autonomous community of residence.

Reductions

Rental reductions remain at 60% for contracts signed before May 26, 2023. For contracts initiated in 2024, new reductions apply: 90% if the property is in a high-demand area and the rent has been reduced by more than 5%; 70% if rented to tenants aged 18-35 for the first time; and 60% if renovations have been completed in the past two years. The standard reduction beyond these cases will be 50%.

Additionally, the reduction for employment income has increased from €6,498 to €7,302. A new 25% reduction applies to economic activities under the objective estimation regime for those affected by the DANA disaster. This is not relevant in Palma, as Mallorca did not experience the disaster that affected Valencia. Tax exemptions remain for taxpayers in La Palma and Lorca due to past natural disasters.

The process for requesting tax refunds for retired mutual society members has been modified following a Supreme Court ruling. From 2025, those who have not yet received their refunds must request them annually through their tax return.

Corrective Self-Assessment

A significant new feature is the ability to submit a corrective self-assessment, simplifying the correction or amendment of an already filed tax return. This process is more efficient, eliminating the need to wait until the end of the tax season.

Final Tips

Avoid last-minute filings. Carefully review the draft provided by the Tax Agency to ensure all information is accurate. Make corrections or additions as needed, and consult a professional if necessary to prevent errors.

For couples, comparing individual and joint filings can help determine the most beneficial option. Also, ensure that bank details for direct debits are correct.

If the return results in an amount payable, it can be split into two installments: 60% upon filing and the remaining 40% in October. A new feature this year allows payments via Bizum.

Remember, personal transactions via Bizum do not need to be declared unless they exceed €10,000 annually. However, profits from cryptocurrency trading and second-hand sales on digital platforms must be reported.

Finally, it is essential to keep all relevant documents and invoices for at least five years, especially those supporting deductions or reductions.