On September 29th the Ministry of Finance announced a tax measures to be included in the next Gerenal State Budgets (2023). It will be a new two-year fiscal package, which would come into force in 2023. The measures regarding the individual income tax include the following: 

  • A reduction in personal income tax for those earning as a dependent work less than 21,000 euros a year. Until now the reduced rate of income tax has only applied to people with an annual income of less than 18,000 euros, now the limit is to rise to 21,000 euros and those whose income is under 15,000 euros will be exempt from this tax altogether.   
  • A reduction for deductible expenses under the simplified direct estimation regime for the self-employed or freelance is raised from 5 to 7%. Currently this deduction has a limit of 2,000 euros per year, which we do not know if an increase will be maintained in accordance with the percentage increase announced. 
  • Exemption from personal income tax, the minimum tax for a single taxpayer without children rises from 14,000 euros to 15,000 euros. While for the case of a taxpayer with children in joint taxation, the “mínimum of reduction” increases from 18,000 euros to 19,000 euros. 

*** If you have any questions or want more information, do not hesitate to contact us, an expert EMS consultant will provide you with appropriate advice based on your requirements. 

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