2025 Income Tax and Wealth Tax Newsletter

Table of Contents

2025 Income Tax and Wealth Tax Campaign

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

Please note that the deadline for submitting Income and Wealth Tax returns (or confirming the draft return in the case of Income Tax) runs from April 8 until June 30, unless the tax due is to be paid by direct debit, in which case the deadline is June 25.

As in previous years, we have prepared this "special edition" of our Tax Newsletter, which summarizes the most relevant aspects to take into account when filing the Income Tax (IRPF) and Wealth Tax (IP) returns. 

This year, as could not be otherwise, we also find some new features, although not many, among which we can highlight in the IRPF (i) that it is the first declaration in which the modification of the tax scale of the savings base is applied, with the increase of the rate applicable to the last section that was raised from 28 to 30% with effects from January 1, 2025 (marginal rate applicable from 300,000 euros of taxable base); and (ii) the modification introduced by some Autonomous Communities of the tax scale corresponding to the general personal income tax base;

It's important to note that in one more year (this is now the fourth), Wealth Tax will coexist with the Solidarity Tax on High Net Worth Individuals. For taxpayers residing in certain autonomous communities, such as Madrid and Andalusia, the declaration of the Wealth Tax requires them to calculate the share of the Solidarity Tax on High Net Worth Individuals, even though this tax is not officially filed until July for those who are obliged to do so.

Finally, remember that accumulation products, such as investment funds and, consequently, fund portfolios, continue to be very efficient for managing financial investments, to the extent that they allow you to defer the Personal Income Tax (IRPF) payment, and they help reduce the Wealth Tax (IP) and Solidarity Tax on High Net Worth Individuals (ISGF) rate due to the application of the joint taxation limit.

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.

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 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.

Summary table of financial product taxation for Income Tax

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

The content in this section is provided for information purposes only and does not comprise tax or legal advice.