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Practical Income Manual 2021.

2. Reduction for taxpayers with non-exempt income of less than 12,000 euros

Regulations: Articles 32.2.3 Law Personal Income Tax and 26 Regulations

Reduction amount

When the requirements to apply the previous reduction are not met, taxpayers with non-exempt income of less than 12,000 euros, including those from the economic activity itself, may reduce the net income from economic activities by the following amounts:

Non-exempt incomeReduction amount
Reduction amount for taxpayers with non-exempt income less than 12,000 euros
8,000 euros or less 1,620 euros
Between 8,000.1 euros and 12,000 euros 1,620 - [0.405 x (Income – 8,000]

Note: For these purposes, income is understood to be the algebraic sum of the net income (from work, movable and real estate capital, and economic activities), income allocations and capital gains and losses computed in the year, without applying the integration and compensation rules. However, income must be computed for its net amount, that is, once expenses have been deducted, but without applying the corresponding reductions, except in the case of income from work, in which the reduction provided for in Article 18 of the Personal Income Tax Law as it is applied prior to the deduction of expenses.

Limit of the reduction

This reduction is limited to the amount of income from the taxpayers' economic activities that generate the right to its application.


  • This reduction is unique to the taxpayer regardless of the number of economic activities carried out by him or her and the method by which the net income is determined, so if several are carried out, the amount will have to be distributed proportionally among all of them.

  • The requirements for the application of this reduction are required and are referred to the taxpayer, so if he meets these requirements he may apply the aforementioned reduction, regardless of whether the income from economic activities derives from his participation in an entity under the attribution regime. income. On the contrary, this reduction cannot be applied to determine the net performance of the economic activities of entities under the income attribution regime.

  • The reduction is compatible with the estimated expense for deductible provisions and expenses that are difficult to justify regulated by article 30 of the Personal Income Tax Regulations .

  • In the case of joint taxation, if one of the taxpayers who are members of the family unit applies the reduction for economically dependent self-employed workers or with a single unrelated client provided for in article 32.2.1° of the Personal Income Tax Law , the rest of the members of the family unit to whom this reduction will not apply will not be able to apply this reduction, given the incompatibility between the two.