NOTE ON THE EFFECTS, IN THE FIELD OF PERSONAL INCOME TAX, OF ROYAL DECREE-LAW 9/2024, OF 23 DECEMBER, WHICH ADOPTS URGENT MEASURES IN ECONOMIC, TAX, TRANSPORT, AND SOCIAL SECURITY MATTERS, AND EXTEND CERTAIN MEASURES TO ADDRESS SITUATIONS OF SOCIAL VULNERABILITY

Note on the effects, in the area of personal income tax, of Royal Decree-Law 9/2024

In accordance with the criteria established by the General Directorate of Taxes, the effects produced by Royal Decree Law 9/2024 as a result of its repeal by the Resolution of January 22, 2025, of the Congress of Deputies are as follows:

MODULES (IRPF 2025)

The limits for applying the objective estimation method in force for the years 2016 to 2024 will remain in place in 2025. In this sense, the DGT establishes that:

“Between January 1 and January 22, 2025, transitional provision 32 of the Personal Income Tax Law (LIRPF), as amended by Royal Decree-Law 9/2024, was fully in force, with the exclusionary magnitudes being those established by said provision. Therefore, personal income tax taxpayers, based on their income and expenses for 2024, have begun the tax period with the certainty of being able to determine their income according to the objective estimation method in 2025. However, following the non-validation of the Royal Decree-Law, they may be automatically excluded from the objective estimation method from 23 January 2025, in the event of a supervening circumstance, and their performance must be determined by direct estimation.

In this regard, given that article 34.1 of Royal Decree 439/2007, of March 30, which approves the Personal Income Tax Regulations and modifies the Regulations on Pension Plans and Funds, approved by Royal Decree 304/2004, of February 20 (BOE of the 31st), establishes that "the exclusion will take effect from the beginning of the year immediately following the one in which said circumstance occurs", for the sake of the principle of legal certainty, and given that the cause for exclusion has occurred superveningly as a consequence of the repeal of Royal Decree-Law 9/2024 on January 22, 2025, we can understand that the effects of the exclusion will occur for the 2026 tax period, and such taxpayers may continue to determine their net income in 2025 according to the objective estimation method.

IMPUTATION OF REAL ESTATE INCOME (IRPF 2024).

The 1.1% rate for the imputation of real estate income will be maintained in 2024 for properties located in municipalities where the cadastral values have been reviewed, modified, or determined through a general collective valuation procedure, in accordance with cadastral regulations, provided that they have come into force on or after January 1, 2012.

The DGT indicates that: “ For the purposes of Personal Income Tax for 2024, the regulations in force on the date the Tax accrues must be taken into account, so the imputation percentage of 1.1 percent will apply in the case of properties located in municipalities where the cadastral values have been reviewed, modified or determined through a general collective valuation procedure, in accordance with the cadastral regulations, provided that they have entered into force on or after January 1, 2012.

OTHER MEASURES (IRPF 2025)

An increase from €1,500 to €2,500 in the amount received from the second and subsequent payers determining the obligation to declare applies to accruals incurred between January 1 and 22, 2025. The extension of the timeframe for deductions for energy efficiency improvement works in homes and for the acquisition of plug-in electric vehicles, fuel cell vehicles, and charging stations is also applicable.