The search for savings in the income statement is a somewhat more complicated task for young people. Their labor reality and that of the housing market move away from state deductions and force them to focus on the regional ones, where there is some margin to reduce the bill. Hence, specific measures are requested to give more fiscal support to the group.
In the state deductions for housing, one of the most outstanding, investments of up to 9,040 base euros are included, to which 7.5% is applied in the state section and 7.5%-9% in the regional section. But the current transitional regime limits its use to homes purchased or rented before 2013, a very restricted access for today's young people.
"It is evident that they have no savings margin with their homes," says Carmen Jover, president of the tax commission of the Col legi d'Economistes de Catalunya and vice president of the REAF-CGE. One solution would be to establish a reduction for those under 35 years of age, especially with the increase in prices in large cities and the difficulty in accessing housing, believes José Pedreira, coordinator of the Group of Experts on Personal Income Tax of the Spanish Association of Advisors. Prosecutors (Aedaf). “Not everyone has access to subsidies. It would be more direct and would reach more people.” In the end, it ends in a paradox: whoever rents it out has better tax treatment than whoever rents it out.
Another of the large state deductions is the contribution to pension plans. But among young people it does not have much experience either. “Here the grace is when I will be able to rescue him. You can when you retire, when you die or if ten years pass. It is a good product, but you have to do the numbers because when you rescue it you have to pay taxes again. For example, if after ten years you have a higher income than today, you will pay more for the plan. If we are talking about young people, who tend to have low salaries, this is not the time to put money into a plan. In high salaries, it would be appropriate, ”says Jover.
"There is no saving capacity due to low wages, temporary contracts and the large amount of income that goes to housing," criticizes Juan Antonio Báez, vice president of the Youth Council of Spain. With the current structure, contributions of up to 1,500 can be deducted for individual plans and 8,500 for company plans. "It is sought that companies make plans, but it is something more typical of large corporations," says Pedreira, who is usually accessed later in the career.
There is another trap on the way. Supports designed especially for young people, such as the cultural bonus of 400 euros for those who turned 18 or the rental bonus of 250 euros are taxed as profit. The same happens with the check for 200 euros against inflation if they have cashed it. Not declaring them exempt when creating them ends up increasing the bill: the tax starts at 19%.
Yes, there is some maneuver in the donations that are made, with 80% deductible for the first 150 euros and up to 40% for the rest in the most common, such as NGOs. And a door has also been opened with investments in startups. “It is very encouraging. The deduction in quota can reach 50,000 euros, the most powerful that has ever been seen... but I have to invest 100,000 euros to opt for the maximum ”, details Jover.
The great hope remains in the regional deductions. Almost all the autonomies have some for young people. When purchasing a home, there are deductions in a handful, such as Andalusia, the Canary Islands, Extremadura or Murcia, among others. More extensive is the one for rent, which almost all have, including Madrid, Catalonia, Galicia or the Valencian Community.
In some cases, those that some enjoy others envy. As deductions are a fiscal policy tool that allows establishing incentives in what is considered, there are deductions of up to 1,000 euros for emancipating before the age of 35 in Asturias, of another 1,000 euros in Madrid for self-employment and deductions for electricity expenses , gas and internet among emancipated youth in La Rioja. Normally the requirement is to be under 35 and have certain income levels.
Except for regional support, there is not much room left. Young people often have only one source of income. "Generally they have income from work, and here there is no incentive or stimulus," they point out from Aedaf. "We need fairer taxation in general terms," adds Báez.
