2022 Income Tax Return

The 2022 tax return campaign begins

We inform you that on April 6 the campaign of the declaration of Personal Income Tax and Wealth Tax will begin. The voluntary deadline to submit it will be active until June 30, 2023.

In the income statement corresponding to 2022, all the income that has been generated during the 2022 fiscal year will have to be declared and all the current deductions will have to be applied.

All those taxpayers who in the fiscal year of 2022 have obtained income that exceeds the limits that we will expose below are obliged to make the declaration .

How is the sale of a home taxed in the Income Tax return?
The sale of a home must be included in the income statement, since it is subject to tax in the IRPF for the capital gain obtained.
The gain is determined by the difference between the transfer and acquisition values. In other words, the difference between the price at which it is sold and the price at which it was bought.

THE ACQUISITION VALUE is composed of:
+ the actual amount (value shown in the deed)
+ the cost of investments and improvements made to the goods purchased
+ the expenses and taxes inherent to the acquisition (ITP, VAT, inheritance tax, commissions)
+ tax-deductible depreciation

THE TRANSMISSION VALUE
+ the actual amount (value shown in the deed)
- The expenses and taxes inherent to the acquisition (payment, municipal capital gains, the commission to a real estate agency, ...)
-> TRANSFER VALUE – ACQUISITION VALUE = CAPITAL GAIN
It should be borne in mind that only transferred properties that were acquired before 31/12/1994 can apply the transitional regime of abatement to the profit.

-Taxation-
Capital gains and losses are taxed in the IRPF as savings income at a progressive rate. They are taxed at the fixed rate:
from 19% to 6.000 €
from 21% from €6,000 to €50,000
of 23% between € 50,000 and € 200,000.
The approval of the new General State Budget of 2021 includes to the capital gain obtained with the sale of a house a new tranche of 26% for profits greater than € 200,000.

- Tax reductions / benefits -
Among several, the most important:
*Reinvestment of the tax obtained in a new habitual residence:
If the amount obtained is reinvested in a new habitual residence , they will be exempt from taxation on the part of the profit that is destined to the purchase of another house. If all the money obtained in the sale is destined for the acquisition of a new home, the exemption will be total. The term is two years from when you sell your habitual residence to reinvest the money in another property and benefit from the exemption. It is necessary to expressly reflect in the declaration that you intend to benefit from the tax benefit and to what extent.
*Elimination of coefficients:
As of 2015, the discount coefficients for the acquisition value of properties not used for economic activities have been abolished.
*Major taxpayers:
Taxpayers over the age of 65 when they sell their home do not have to pay taxes on the profit they make from selling their main residence. In this case, the law does not require reinvesting the money in another house to qualify for the exemption.

If you want more information about the news affecting this year's declaration, I-VEO Synergy would be happy to advise you.