7. Contributions to social security systems in which the taxpayer's spouse is a participant, mutual member or owner
In general
Notwithstanding the reductions made in accordance with the general regime of contributions to social security systems discussed above, the contributions made to social security systems of spouse may reduce the general tax base of the taxpayer with the maximum limit of 2,500 euros per year , without this reduction being able to generate a negative taxable base, provided that the following requirements are met:
- That the spouse does not obtain net income from work or economic activities, or obtains such income in an amount less than 8,000 euros per year.
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That the contributions are made to any of the social security systems mentioned so far in which said spouse is a participant, member or holder.
Note: Transfers between spouses that occur as a result of this special reduction regime are not subject, by express legal provision, to the Inheritance and Gift Tax, up to the limit of 2,500 euros per year.
Compatibility with reductions applied for direct contributions and contributions imputed to the taxpayer's social security systems
The application of this reduction may in no case entail a double reduction (for the taxpayer and his/her participating spouse) for the same contributions. However, there is no limitation as to who (the taxpayer or his/her participating spouse) applies the reduction.
If the taxpayer's spouse earns net income from work or economic activities in an amount less than 8,000 euros per year, and chooses to apply the tax reduction on contributions made to the social security systems of which he or she is a participant, member or holder, he or she must determine the amount of the tax reduction in accordance with the maximum reduction limits mentioned above.
If the contributions cannot be reduced in their entirety between both parties (the spouse, in accordance with the general limits, and the taxpayer, according to this additional reduction regime), it will be the participating spouse, member or owner who requests to transfer the excess of contributions not reduced to future years. The following year, the excess may be reduced by again taking into account the limits applicable to contributions.
Example: Contributions to social security systems in which the taxpayer's spouse is a participant, mutual member or owner
In 2020, the general tax base of a 44-year-old taxpayer is 49,800 euros, with the sum of the net income from work and economic activities obtained by the taxpayer amounting to 45,000 euros.
The general tax base of her spouse, aged 41, is 4,900 euros, with the sum of the net income from work and economic activities obtained by him being 4,500 euros.
In this year, the taxpayer and his/her spouse have made direct contributions to two pension plans in which each of them is a participant, with contributions from the taxpayer amounting to 4,600 euros and contributions from the spouse amounting to 3,000 euros.
Determine the applicable reductions based on direct contributions made by the spouse.
Solution:
Regardless of the reduction that, according to the general regime, corresponds to the contributions made by the taxpayer to his own pension plan, to determine the applicable reductions based on the 3,000 euros contributed by the spouse, the following options are possible:
| Applicable reduction | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Reduction applicable by the spouse | 1,350 (1) | 500 | Part up to 1,350.00 (3) |
| Reduction applicable by the taxpayer | 1,650 | 2,500 (2) | Remaining up to 2,500.00 (3) |
Notes on the example
(1) The spouse applies, in accordance with the general regime, the maximum possible reduction corresponding to his or her contributions. This amount coincides with your maximum reduction limit, 30% of the sum of your net income from work and economic activities obtained in the year (4,500 x 30% = 1,350). The remainder (1,650) can be reduced by the taxpayer, as this amount does not exceed the maximum amount of 2,500.00 euros. (Back)
(2) The taxpayer applies the maximum possible reduction under the additional reduction regime, and the spouse applies the corresponding reduction to the rest of the amounts contributed, without exceeding the maximum limit allowed by the general regime: 30 percent of the sum of the net income from work and economic activities obtained individually in the year (4,500 x 30% = 1,350). (Back)
(3) Each spouse applies the reduction for the amount they wish, provided that the amount corresponding to the taxpayer does not exceed 2,500 euros (maximum limit of the additional reduction) and the amount corresponding to the spouse does not exceed 1,350 euros (4,500 x 30%) and without the sum exceeding the total amount of 3,000 euros contributed by the spouse. (Back)