2025 Income Tax and Wealth Tax Newsletter

Once again, April marks the start of the Income and Wealth Tax Campaign, which will end on 25 June in Araba, 30 June at the Provincial Council of Bizkaia, and 2 July in Gipúzkoa.

As we have done in recent years, in conjunction with the tax filing season, we have prepared this Tax Newsletter, which summarizes the most important points to keep in mind when filing your tax returns.

Finally, we do not want to miss the opportunity to remind you that accumulation products, such as investment funds, continue to be very efficient for the management of financial investments, to the extent that they allow the payment of Income Tax (IRPF) to be deferred and contribute to reducing the Wealth Tax (IP) rate by applying the IRPF-IP joint taxation limit.

In short, the time has come to file income and net worth tax returns—an opportunity that can also be used to consider which types of investments may be most tax-efficient for minimizing these tax liabilities.

 

Jesús Muñoz García

Director of Asset Planning

BBVA Private Banking

Below, we summarize the matters that we consider most important in terms of filing the Income Tax return corresponding to the 2025 fiscal year.

As with Income Tax Campaigns in recent years, it is not possible to get an Income Tax return on paper, and it must be filed by one of the methods mentioned below.

Download document

When preparing your Income Tax return, you must consider whether it is better to file an individual tax return or, in the case of a family, a joint return. Further information here:

Download document

A person's income tax base is divided into two parts: the general tax base and the savings tax base. 

Download document

We'll tell you everything you need to know here:

Download document

All information about reductions to the tax base for contributions to pension plans and other social welfare systems, as well as other matters, below:

Download document

Once the tax base is determined, and reduced by applying any relevant reductions, we obtain the net tax base, which is the base on which the tax scale will be applied. All the information below:

Download document

To determine the net tax liability, a series of deductions will be applied to the gross tax liability, of which the following are worth mentioning:

Download document

The amount resulting from applying the applicable deductions to the net tax liability (including the international double taxation deduction) and the withholdings made, will be the so-called "differential" tax liability.

We tell you everything below:

Download document

If you are required to file a Wealth Tax return, there are a number of matters that you cannot ignore. Among these, it is worth mentioning the obligation to file a tax return, the assets and rights exempt from taxation, the valuation standards, as well as the tax liability limitation rule due to application of this tax's joint tax limit with Personal Income Tax

The details of people required to file a return are explained below:

Download document

All the information on the tax base below:

Download document

Below, we will refer to those tax exemptions that we believe are particularly important due to their practical application:

Download document

The Wealth Tax Law establishes a series of rules that regulate the valuation of different assets, rights and debts. Find out about them here:

Download document

Find out the tax-free threshold depending on the autonomous communities.

Download document

Once the taxable income is determined, and reduced by applying any minimum applicable reductions, we obtain the net tax base, which is the amount to which the tax scale is applied. The net result of this process is the amount owed.

As a result, the scale applicable to the 2025 fiscal year is explained here:

Download document

Here we review the reduction by applying the joint limit with Income Tax:

Download document

The Income Tax and Wealth Tax liability may vary depending on the autonomous community of residence. Therefore, it is very important to understand the rules that will lead us to apply the regulations of one or another community.

The details of people required to file a return are explained below:

Download document

All the information on the tax base below:

Download document

Below, we will refer to those tax exemptions that we believe are particularly important due to their practical application:

Download document

The Wealth Tax Law establishes a series of rules that regulate the valuation of different assets, rights and debts. Find out about them here:

Download document

Find out the tax-free threshold depending on the autonomous communities.

Download document

Once the taxable income is determined, and reduced by applying any minimum applicable reductions, we obtain the net tax base, which is the amount to which the tax scale is applied. The net result of this process is the amount owed.

As a result, the scale applicable to the 2025 fiscal year is explained here:

Download document

Here we review the reduction by applying the joint limit with Income Tax:

Download document

Discover below the applicable tax discounts that some autonomous communities have approved:

Download document

In this PDF you will be able to see the summary table:

Another year has passed and we are in the midst of the Income and Wealth Tax Campaign.

Let us remember that the deadline for submitting Income and Wealth tax returns is open from April 9th ​​until June 25th.

As in previous years, on the occasion of the Campaign, we have prepared this Tax Newsletter, which summarizes the most relevant aspects to consider when preparing the tax returns. 

We do not want to miss the opportunity to remind you that accumulation products, such as investment funds, and, with them, portfolios of funds, continue to be very efficient for the management of financial investments, to the extent that they allow the payment of Income Tax (IRPF) to be deferred and contribute to reducing the Wealth Tax (IP) rate by applying the IRPF-IP joint taxation limit.

In short, the time has come to file income and net worth tax returns—an opportunity that can also be used to consider which types of investments might be most tax-efficient for optimizing your tax liability on these taxes.

 

Jesús Muñoz García

Director of Asset Planning

BBVA Private Banking

Below, we summarize the matters that we consider most important in terms of filing the Income Tax return corresponding to the 2025 fiscal year.

As with Income Tax Campaigns in recent years, it is not possible to get an Income Tax return on paper, and it must be filed by one of the methods mentioned below.

Download document

When preparing your Income Tax return, you must consider whether it is better to file an individual tax return or, in the case of a family, a joint return.
Find out more here:

Download document

A person's income tax base is divided into two parts: the general tax base and the savings tax base. 

Download document

We'll tell you everything you need to know here:

Download document

All information about reductions to the tax base for contributions to pension plans and other social welfare systems, as well as other matters, below:

Download document

Once the tax base is determined, and reduced by applying any relevant reductions, we obtain the net tax base, which is the base on which the tax scale will be applied. All the information below:

Download document

To determine the net tax liability, a series of deductions will be applied to the gross tax liability, of which the following are worth mentioning:

Download document

Finally, the net tax liability will be reduced by applying certain deductions and withholdings that have been made during the fiscal year. We'll explain it here:

Download document

The amount resulting from applying the applicable deductions to the net tax liability (including the international double taxation deduction) and the withholdings made, will be the so-called "differential" tax liability.

So, the final result of the tax return, which may be positive (payable) or negative (refundable), will be the amount of the "differential" tax liability once any applicable deductions for maternity and/or large families or those caring for persons with disabilities are applied.

Download document

If you are required to file a Wealth Tax return, there are a number of matters that you cannot ignore. Among these, it is worth mentioning the obligation to file a tax return, the assets and rights exempt from taxation, the valuation standards, as well as the tax liability limitation rule due to application of this tax's joint tax limit with Personal Income Tax

The details of people required to file a return are explained below:

Download document

All the information on the tax base below:

Download document

Below, we will refer to those tax exemptions that we believe are particularly important due to their practical application:

Download document

The Wealth Tax Law establishes a series of rules that regulate the valuation of different assets, rights and debts. Find out about them here:

Download document

Find out the tax-free threshold depending on the autonomous communities.

Download document

Once the taxable income is determined, and reduced by applying any minimum applicable reductions, we obtain the net tax base, which is the amount to which the tax scale is applied. The net result of this process is the amount owed.

As a result, the scale applicable to the 2025 fiscal year is explained here:

Download document

Here we review the reduction by applying the joint limit with Income Tax:

Download document

In this PDF you will be able to see the summary table: