There is still more than a month left until the end of the year, and what follows is FY2023.In this sense, many people are already thinking about Profit and loss statement Next year and how to save money. Paying tax is unavoidable, but it can be reduced slightly with a range of tips from the Organization of Consumers and Users (OCU).
The organization explains that the last few months before the end of the year are crucial to saving some money. The advice provided by OCU is very useful, especially when Inflation and economic crisis Just like what you are experiencing.
10 Keys to Paying Less Tax
1. Take advantage of regional deductions
Depending on each municipality, there are different tax deductions for, for example, kindergartens, education fees, public transport fees, domestic services, installation of water or energy-saving devices or rent.
2. Communicate any changes in the family
The amount of personal income tax withheld depends on the family situation, etc., so the company must be notified of any changes in circumstances (birth of a child, divorce, disability…).
3. Exchange cash wages for tax-free in-kind wages
Some companies provide employees with benefits such as health insurance, food stamps, or transportation vouchers to cover wages.
4. Donate
Donations are deducted, more so if you always donate to the same entity. If you donate to NGOs, foundations and non-profit entities, 80% is deductible on the first €150 and 35% on any amount above that amount.
5. Take advantage of the housing deduction
If you bought your home before 2013, you can deduct 15% of the purchase price, up to a maximum of €9,040 (€18,080 if you paid together with your spouse and declared separately). You can also deduct energy efficiency work on your primary residence or another residence you rent.
6. Deductions for electric vehicles and charging stations
If you bought a new electric car on or after June 30, 2023, and registered it before January 1, 2024, you will be able to deduct 15% of its value, including fees and taxes, on your next return. Deduct public assistance. , up to a maximum of more than 20,000 euros.
7. Wait until age 65 to sell your home
If you are over 65, you do not need to declare capital gains (whether onerous or profitable) arising from the transfer of your habitual residence.
8. If you are a landlord
If you are the owner of a rental property, you can deduct from your income subject to personal income tax the expenses incurred in acquiring the property: IBI, advertising, agents, insurance, community…
9. Save on pension plans
Contributing up to €1,500 to a pension scheme can reduce your personal income tax. However, this is not advisable for those who derive income solely from property rentals, banking products or profits from asset transfers, as such income will not be reduced by contributions to a pension scheme.
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10. Compensation for losses and gains
If you made profits during 2023 by selling or donating assets and thereby accumulated losses in other investments, one way to save money on your next tax return is to crystallize those losses so that you can offset them against profits.