Among the different options offered by the current regulations to optimize the Personal Income Tax liabilities, we will focus on those relating to the integration and offsetting of income under the following scenarios:
November 2025 tax newsletter
Table of Contents
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Editorial
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2025 Personal Income Tax year end
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Latest tax changes implemented by the autonomous communities
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Tax optimization of financial investments
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Issues related to the application of tax benefits for family businesses
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Basque Country
November 2025
Once again, the time has come to reflect on the alternatives offered by current legislation to improve personal income tax (IRPF) for the 2025 financial year.
We would like to emphasize the significance of the rules governing the integration and offsetting of income. These rules could enable us to make the most of any losses incurred during the year, whether they have been realized or not, as well as any carried forward from previous years.
In addition, income tax regulations offer other ways to optimize this tax, such as contributions to pension plans and other social security systems, early repayment of mortgage loans to maximize the deduction for investment in the primary residence (only for those who purchased their primary residence before January 1, 2013), making donations to certain non-profit organizations, carrying out improvements to increase the energy efficiency of homes, or purchasing plug-in electric vehicles.
On the other hand, with a view to tax optimization for the coming fiscal year, it is important to consider how an appropriate investment strategy focused on accumulation products, such as a fund portfolio, could contribute to improving income tax and wealth tax liability, although in any case, specific personal and financial circumstances would need to be analyzed.
Finally, we would also like to point out that, although there have been few changes to state tax regulations in recent months, we have encountered some significant tax changes in relation to taxes transferred to certain autonomous communities, as described in this newsletter.
Jesús Muñoz García
Director of Asset Planning
BBVA Private Banking
As we approach the end of the year, it's an important time to identify optimization strategies that could enhance Personal Income Tax outcomes for the 2025 fiscal year.
In recent months, some autonomous communities have approved, with effects for the 2025 fiscal year, relevant tax changes in relation to the transferred taxes, which we will discuss below.
The taxation associated with any investment we make, including financial investments, will be decisive in determining the final return we can obtain.
As expected, there have been significant developments in the area of family businesses in recent months, through rulings by the courts and the tax authorities. Foremost among these is: (i) Supreme Court rulings on the requirement that the person employed must be considered to be engaged in economic activity for the activity of leasing real estate to be considered as such; and (ii) change in criteria by the Directorate General of Taxes regarding the calculation of the scope of the family group.
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The content in this section is provided for information purposes only and does not comprise tax or legal advice.