Among the different options offered by the current regulations to optimize the Personal Income Tax liabilities, we will focus on those relating to the integration and offsetting of income under the following scenarios:
November 2024 Tax Newsletter
Table of Contents
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Editorial
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2024 Personal Income Tax fiscal closing
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Separate assets contributed to shared marital property
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Private equity investment in venture capital and hedge funds
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Venture capital and family business
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Other notes
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Basque Country
November 2024
As we approach the end of the year, it’s time to consider the opportunities provided by the current regulations to optimize Personal Income Tax (IRPF) for 2024.
We would like to emphasize the significance of the rules governing the integration and offsetting of income. These rules could enable us to make the most of any losses incurred during the year, whether they have been realized or not, as well as any carried forward from previous years.
In addition, the Personal Income Tax regulations provide several options to optimize this tax. These include contributions to pension plans and other social welfare schemes, early repayments of mortgage loans to maximize deductions for primary residence investment, donations to certain non-profit entities with increased deduction amounts for this year, home improvement projects to enhance energy efficiency, and the purchase of plug-in electric vehicles
We should also stay informed about any potential regulatory changes that might be approved before the year ends, such as amendments to the Bill for the transposition of the Pillar II Directive. Notably, in the area of wealth taxation, the maximum marginal rate for the savings base of personal income tax could increase from 28% to 30%
Ultimately, in these final weeks before the year concludes, it is crucial to consider all the available alternatives. This includes those offered by current regulations and any potential forthcoming changes, to improve personal income tax outcomes.
Jesús Muñoz García
Director of Asset Planning
BBVA Private Banking
As we approach the end of the year, it's a crucial time to identify optimization strategies that could enhance Personal Income Tax outcomes for the 2024 fiscal year.
It's common for spouses married under a community property regime to contribute separate assets to the community property. Understanding the potential tax implications of these contributions is essential.
The tax treatment of Private Equity investments can vary depending on the type of investment vehicle used.
Investing in Venture Capital might qualify for family business tax benefits, but this depends on meeting certain criteria, including how the investment is structured.
The Supreme Court has recently issued a ruling on the regulations concerning the consolidation of full ownership of assets, where the bare ownership was acquired through inheritance.
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Note:
The content in this section is provided for information purposes only and does not comprise tax or legal advice.