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Withholdings and payment on account

What they are, when you should apply them and your obligations as a withholder

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Advance payment of deductions for a principal residence

If you are an employee, you can request a reduction of two whole points in the withholding rate applicable to your work income, provided that:

  • the total amount of your total remuneration from employment income from all your payers is less than €33,007.20 per year;

  • make payments on loans intended for the acquisition or renovation of your primary residence (extension or construction is not contemplated);

  • you are entitled to the deduction for investment in your primary residence;

  • communicate this situation to your payer (you can use Form 145);

  • and the withholding rate does not turn out to be negative as a result of the reduction.

If you are the payer of the income from work, you will have to take this into account when calculating the withholding you must make on your employees.

Filing deadlines and effects

You can make the communication from the moment you allocate amounts to the acquisition or renovation of your habitual residence.

The adjustment of the withholding rate will take effect from the date on which you notify it and, provided that there are at least 5 days left to prepare the payroll.

You do not have to repeat this communication in each financial year unless there are changes in the data you initially communicated.