Today we want to shed some light on the bitter debate about the differences between tax deductions and tax relief, since although both instruments allow us to reduce the tax burden on our pockets, they do not work exactly in the same way.
While tax relief or reductions serve to reduce the tax base of a tax, that is. The amount on which the tax rate will be applied; Tax deductions are reductions in the tax rate applied to the taxable income.
What are deductions
Deductions are economic reductions that taxpayers can apply in the percentage of the tax depending on the expenses they intend to deduct.
Although most of the autonomous communities apply personal income tax deductions for the self-employed, for disability, for single-parent or large families, for those over 65 years of age or deductions for rent; there are deductions specific to certain Autonomous Communities such as those applied to Latest Mailing Database the international adoption of children in Aragon, to textbooks or language learning in the Balearic Islands or to renting a habitual residence for people under 36 years of age.
At the national level, there are also deductible expenses with which taxpayers domiciled in Spain can reduce the personal income tax quota:
Works to improve the energy efficiency of homes: reduction in consumption of heating and cooling, of non-renewable primary energy.
When we dive into the crazy world of taxes
Maternity: it is possible to benefit from maternity deductions of up to €1,200 per year for children under three years of age born in Spain.
Large family: deductions for large families also allow you USA CEO to deduct €100 per month and €200 in the case of special category large families.
Disability: taxpayers who are responsible for descendants or ascendants with various degrees of disability, may also deduct up to €1,200 per year.
Culture: if you have invested in activities of cultural interest, you can deduct up to 15% of your contribution.