2025 Income Tax Return: Important Dates and Changes

Content:

The Income Tax Return is here.

This year it begins on Wednesday, April 2 and ends on Monday, June 30 .

1. Tax Changes at the State Level

Increase in the reduction for work income

One of the most notable changes is the increase in the tax deduction for earned income. Starting this campaign, the reduction increases from €6,498 to €7,302 , allowing taxpayers with lower salaries to reduce their tax base and pay less tax ( reference ).

In addition, the threshold for income from work above which one is required to declare is being extended:

• Single payer: still €22,000.
• Multiple payers: increases from €15,000 to €15,876 , provided the second and remaining payers do not exceed €1,500.

Greater Tax Benefit for Donations

Donations also experience a relevant change:

• You can deduct 80% of the first 250 euros donated (previously it was 150 euros).
• For larger amounts, the deduction increases from 35% to 40% .
• If you have donated to the same entity for several years in a row, the deduction increases from 40% to 45% .

Unemployed: The Most Affected Group

The unemployed will be the most affected by the changes in this campaign, as all those who received unemployment benefits in 2024 will be required to file income tax returns , regardless of their income.

This change was established in the amendment to Article 299 of the LGSS ( General Social Security Law) through Royal Decree-Law 2/2024 . Failure to file the declaration could result in the loss of the benefit .

This measure is in addition to the one introduced in 2023, where more than 200,000 self-employed workers were required to file their tax return , as established in Royal Decree-Law 13/2022 .

Changes to Housing Rental Reductions

Until now, rental property owners could benefit from a fixed 60% reduction on net rental income. Starting with this campaign, the general reduction drops to 50% , although three special rates have been established:

• 90% reduction : For rentals in stressed areas with a reduction of at least 5% in the tenant's rent.
• 70% reduction : If the tenant is between 18 and 35 years old or if the property is rented to a Public Administration or non-profit entity.
• 60% reduction : For homeowners who have made renovations to their home amounting to more than 25% of the purchase value in the previous two years.

Deductions Maintained in Energy Efficiency and Sustainable Mobility

The Government has extended the deduction of up to 60% for energy efficiency improvements in homes until December 31, 2025. The 15% deduction on the purchase of plug-in electric vehicles and charging stations has also been extended until that date.

2. Tax Changes at the Autonomous Level

Community of Madrid

Starting this year, it's no longer necessary to file the Property Transfer Tax (ITP) to qualify for the deduction for renting a primary residence. Furthermore, the age limit for this deduction has been raised from 35 to 40 .

Valencian Community

A new 100% deduction is introduced for the costs of repairing damage caused by DANA , provided that income does not exceed 45,000 euros for individual taxation or 60,000 euros for joint taxation .

On the other hand, there is no news regarding regional deflation in this campaign.

3. Conclusion

The 2025 Income Tax return brings important changes, especially for the unemployed and rental property owners. Remember that the Treasury has a four-year period to review your return and notify us of any errors or issues.

It's critical to review your draft, make sure you include all applicable deductions, and file your return correctly to avoid surprises in the future.

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