Income declared in personal income tax exceeds half a billion euros for the first time

The income declared in the IRPF exceeded in 2021 for the first time half a billion euros, according to a report presented this Monday by the Union of Technicians of the Ministry of Finance (Getsha).

Oliver Thansan
Oliver Thansan
30 July 2023 Sunday 16:36
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Income declared in personal income tax exceeds half a billion euros for the first time

The income declared in the IRPF exceeded in 2021 for the first time half a billion euros, according to a report presented this Monday by the Union of Technicians of the Ministry of Finance (Getsha). In that year, the most recent with definitive data, 502,047 million euros were reached, 34,725 million more than in 2019.

The recovery of income had an increase of 7.4% compared to 2019. Wages increased by 30,640 million compared to pre-pandemic levels, 8.2%, and the income of the self-employed improved by almost 4,119 million, 12% further. Thus, the increasing path in income declared in personal income tax in recent years was consolidated, despite the slight decline of 0.5% in 2020 due to the coronavirus crisis.

From Gestha it is appreciated that the support measures for workers, the self-employed and companies applied during the pandemic contained the drop in income and allowed them to rebound by 8% just one year later.

The study indicates that labor contracting allowed for 5.4% more declaring workers than in 2019, the self-employed opened 0.8% more businesses and real estate renters increased by 2.9%, with a 0.6% increase in real estate income, at pre-covid levels.

For their part, taxpayers of savings income fell by 19.6% due to the dividend reduction policy. What they declared fell by 958 million, 2.5% less. But real estate income rose 0.6%.

The situation has been different from what occurred with the financial crisis, in which the austerity measures of 2008 reduced the income declared in personal income tax in 2009 and 2010 and the pre-crisis level could not be recovered until nine years later, in 2017. .

The report, prepared from the analysis of a statistic published this month by the Tax Agency, also reveals that the ERTE or temporary employment files saved the income of workers in 2020, a year in which they even increased by 2.7% . The support measures for the self-employed and companies contained the drop worse, by decreasing 14.8% in the self-employed and 16.5% in savings income.

Real estate rentals for the year of the pandemic fell 5.5% due to the lower number of vacation rentals.