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Practical Income Manual 2021.

Reduction amount

Fixed amount: 2,000 euros

When the above requirements are met, taxpayers may reduce the net income from economic activities by 2,000 euros.

Additional reduction for taxpayers with net income less than 14,450 euros

When the net income from economic activities is less than 14,450 euros, and the taxpayer does not have income, excluding the exempt ones, other than those from economic activities greater than 6,500 euros the following additional reductions are established :

(*) RN=net return from economic activities.
Net performanceReduction amount
Amount of the additional reduction for economically dependent self-employed workers or with a single unrelated client
11,250 euros or less 3,700 euros
Between 11,250.1 and 14,450 euros 3,700 - [1.15625 x (RN - 11,250)] (*)

In the case of joint taxation of family units in which several of its members obtain income from economic activities, the amount of the reduction will be determined based on the joint amount of the net income of the economic activity of all members of the family unit and, where applicable, income other than income from economic activity, without multiplying the amount of the resulting reduction based on the number of members of the family unit receiving income. of economic activities.

Note: The concept of "income excluding exempt income, other than income from economic activities" referred to in article 32.2.3, includes the algebraic sum of the net income (from work and movable and real estate capital), income imputations and of the 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.

Additional reduction for people with disabilities

Additionally, people with disabilities who obtain net income derived from the effective exercise of an economic activity may apply the corresponding amount of the following:

  • 3,500 euros per year, generally.

  • 7,750 euros annually, for people with disabilities who prove they need help from third parties or reduced mobility, or a degree of disability equal to or greater than 65 percent.