The 2023 tax return campaign is now underway, marking a crucial period for taxpayers across Spain, including the Balearic Islands. Starting on April 3, 2024 and ending on July 1, this period not only brings with it key dates to take into account, but also a series of significant developments that could have a significant impact on each person’s tax management.

Filing your personal income tax return has become an annual time of financial reflection for many, and this year is no exception. The new features introduced range from changes to the thresholds for reporting obligations, to specific tax incentives, to deductions for maternity and for investments in electric vehicles and charging points. In addition, a special tax regime is introduced for the Balearic Islands, highlighting the importance of the region in the Spanish tax landscape.

One of the most relevant updates is the adjustment in the limits for the obligation to declare. Now, workers with earned income of more than €15,000 from more than one payer, as well as certain other specific cases, are required to file their return. This represents a significant change from the previous threshold of €14,000, offering tax respite to some taxpayers.

This year’s campaign also continues to offer interest-free payment of personal income tax in instalments, divided into two instalments, thus facilitating the management of the tax burden for those whose tax return is to be paid. This payment scheme addresses the need for flexibility in the administration of personal tax obligations.

For residents of the Balearic Islands, a special tax regime is introduced, applicable for the first time in this declaration, designed to encourage investment and economic development in the region. This regime includes incentives for entrepreneurs and professionals who carry out their economic activity through the direct estimation method, thus promoting activity in key sectors such as industry, agriculture, livestock and fisheries.

The maternity deduction is extended, benefiting more working mothers, including those who are unemployed, thus broadening the spectrum of beneficiaries of this aid. In addition, deductions are introduced for the acquisition of electric vehicles and the installation of charging systems, in line with the objectives of sustainability and the promotion of non-polluting mobility.

Deductions for works to improve energy efficiency are maintained, incentivising reforms that reduce energy demand or improve the energy rating of homes. Not only do these measures promote a more efficient use of resources, but they can also mean considerable savings for taxpayers in the long run.

This compendium of new tax returns for 2023 highlights the crucial importance of being well-informed and prepared to deal with tax obligations efficiently, where tax planning plays a more vital role than ever in optimizing the personal tax burden and maximizing the benefits allowed by law.

The importance of having specialized tax advice is underlined, which not only facilitates the understanding but also the effective application of these new developments. When completing the tax return, it is essential to pay close attention to the boxes related to changes in personal situations, exempt income, state and regional deductions, mortgages, pension plans, donations, among others, since these factors have a direct impact on the result of the return and are key to achieving, in the best of cases, a result to be returned or,  at the very least, minimise the amount to be paid to the Treasury.