art.4.3.a. IRPF

General income is taxable at a rate of 10%.

General income , ” la renda general “,  consists of  :

– income from employment for example salaries or pensions.  ( les rendes de treball)

– income from business activities for example trade or professions.  ( les rendes procedents de la realizació d´activitats econòmiques )

– income from real estate for example rentals ( les rendes del capital immobiliari.)

There is a 24000 € allowance on General income. This allowance is increased to 40000 € if the non – separated spouse or partner who is living with the taxpayer does not receive any general income.

If the spouse or partner’s annual general income is less than 24000 € (or 30000€ if disabled) then the shortfall can be added to the taxpayer’s allowance provided the total claimed by the couple is not over 40000€.

The allowance of 24000 p.a. is increased to 30000 € for incapacitated taxpayers.

under Art.46, if the taxpayer has general income in excess of the personal allowance (24000€, or 30000€ if disabled) then there is a general credit, deductible from gross tax payable, of 5% of the excess of general income over the personal allowance with a maximum credit of 800€.

Under Article 35.2 there are also small allowances for dependent children, grandchildren, parents etc.

30% of employment or self-employment earnings, up to a maximum of 5000€ per year, can be deducted from gross General Income if they are used to provide pensions or ancillary death and invalidity benefits. Art. 39.1

Up to 1000€ per year can be deducted from gross General Income if it is used to pay the cost (including mortgage interest and repayment of capital) of building or improving a principal residence. Art.38

Child support and alimony to separated or former spouses are deductible from gross general income (art.39.2) but they become General Income of the recipient under Art. 12.2 b)

There is a credit for investment and creation of jobs (Art.49) which can be deducted from the gross tax.