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Date Published: 01/04/2025

Income tax season arrives in Murcia with new deductions and savings for workers

Workers in the Region of Murcia can save money on internet connection, language lessons and more

The annual Income Tax Return (Declaración de la Renta) campaign kicks off on Wednesday April 2, when many employees and all self-employed workers will have to file their taxes for the 2024 fiscal year. It’s never a particularly fun time but for people living in the Region of Murcia, there are three new deductions this year that could mean more money in your pocket.

You’ll be able to file your returns until June 30, which is a longer spell than usual and the Spanish Tax Agency (AEAT) is making it a little easier by allowing workers to pay anything owed through Bizum.

But there’s even better news for Murcianos, as regional president Fernando López Miras confirmed last week that the deductions available will increase from €17 to €20, alongside three novel money-saving initiatives.

New deduction in the Region of Murcia

For the first time ever, families with children will be able to deduct up to €300 in language tuition expenses per child. This amount is in addition to a reduction of up to 20% for daycare costs, as well as a subsidy of €120 per child for school supplies.

Taxpayers will also be eligible for a new regional deduction, intended to encourage the purchase of high-speed internet lines. This deduction, which amounts to €300, applies to both the registration fee and the corresponding monthly payments.

Both of these features will be available to residents of municipalities with fewer than 15,000 inhabitants.

The third big change impacts large and single-parent families; if they purchased a new primary residence or extended their home in 2024, they will be eligible for a significant 10% deduction (15% for large families), up to a maximum amount of €5,000.

This year, there are changes to the requirements for several deductions that were already in place. For example, in the case of the deduction for renting a primary residence, the maximum age limit has been increased from 35 to 40 years, and the maximum taxable base for this deduction has been increased from €24,380 to €40,000, meaning it will apply to Murcian taxpayers with much higher incomes.

Likewise, the Region of Murcia will continue offering other important deductions, such as those for working women with dependent children, who can deduct up to €400 per descendant or dependent.

Other changes and tax exemptions in 2025

As mentioned above, this year people will have the option of using Bizum, the instant payment system with which 38 banks collaborate, to pay back any taxes owed. According to the AEAT website, the Tax Office will enable mobile Bizum payments from May 6.

Anyone in Spain affected by the DANA disaster will be able to benefit from tax exemptions on compensation received, whether for property or personal injury.

Regarding retired mutual insurance company members, there was a "change of criteria" last week after "listening to the affected groups, unions and political groups." According to the Minister of Finance, María Jesús Montero, those entitled to a personal income tax refund for contributions made before January 1, 1999, will be able to receive the outstanding amounts from the Tax Agency in a single payment throughout 2025.

According to union estimates gathered in February, there were around 1,300 pensioners in the Region of Murcia who had not yet received their back pay.

Another advantage is the extension of deductions for energy efficiency projects. If you have made improvements to your home to reduce energy consumption, you can enjoy a significant deduction and anyone who bought a plug-in electric or fuel cell car in 2024 can deduct up to 15% of the purchase value.

There are also new developments for owners of rental properties. Tax reductions of up to 90% are being applied to the net rental income of homes in stressed areas, which do not currently exist in the Region of Murcia.

Tax benefits are also available for landlords of renovated homes or those who rent to young people between 18 and 35.

Who needs to file an Income Tax Return?

It's best to stay tuned for updates on the criteria that require filing a tax return but at the moment, anyone with an income of €22,000 from a single taxpayer, or with income exceeding €15,876 if there are two or more payers, and if the total income from the second and subsequent payers exceeds €2,500, must do so.

The situation is different for those receiving the minimum wage and those who received unemployment benefits this year, as their obligation to file a tax return has been postponed until next year.

However, self-employed workers must continue to file their tax returns, regardless of their income.

Filing Income Tax returns can be a complex and daunting task, especially for those unfamiliar with the Spanish tax system. To avoid costly mistakes and ensure compliance with all regulations, it's highly recommended to seek the expertise of a reputable agency.

Gestoría Carvajal, a family-owned business with more than 10 years of experience, is a leading provider of legal services and conveyancing in Spain.

Whether you need assistance with Spanish tax returns or other legal and administrative matters, Gestoría Carvajal is here to help. Contact Pamela today on 0034 968 154 045 or email info@gestoriacarvajal.com to discover how their expertise can benefit you.

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