General State Budget Law 2022: summary of the main tax measures

On 1 January, the new tax measures approved in the General State Budget Law for 2022, published in the Official State Gazette on 29 December, came into force.
Below is a summary of the most important tax measures:  

Measures affecting personal income tax

New limits are applied to personal income tax reductions for contributions to social welfare systems:
The different limits in relation to social welfare systems are lowered.
On one hand, in the case of private insurance policies that only cover the risk of severe dependency or major dependency, the combined reductions made by all persons paying premiums in favour of the same taxpayer, including those of the taxpayer himself, may not exceed 1,500 euros per year (previously, the limit was 2,000 euros per year).
On the other hand, the joint maximum limit for contributions to social security systems shall be the lesser of the following amounts:
  1. 30% of the sum of the net income from work and from economic activities received individually in the financial year.
  2. 1,500 euros per year (previously the limit was 2,000 euros).
From 1 January 2022, this limit will be increased by 8,500 euros, provided that it comes from company contributions, or from contributions by the worker to the same social welfare instrument (same pension plan, company social welfare plan, mutual social welfare fund, etc.) to which the company contributions have been made, for an amount equal to or less than the respective company contribution (previously the limit was 8,000 euros and the increase had to come exclusively from company contributions).
The amounts contributed by the company deriving from a decision by the worker shall be considered as contributions by the worker.  
Own contributions made by the individual employer to employment pension plans or social welfare mutual societies, of which he is, in turn, the promoter and participant or member, as well as those made to company social welfare plans or collective dependency insurance of which, in turn, he is the policyholder and insured, will be considered as company contributions, for the purposes of calculating this limit.
In addition, the limit of 5,000 euros per year for the premiums for group dependency insurance paid by the company, which already existed previously, is maintained.
Limits excluding the objective assessment method for personal income tax purposes
The exclusion limits for the simplified system and the special system for agricultural, livestock and forestry activities, which have their own quantitative limit based on the volume of income, are extended for the financial year 2022.  
Therefore, the general exclusion factors for the financial year 2022 will be the following:
  • Volume of income in the immediately preceding year in excess of 250,000 euros for all economic activities, except agricultural, livestock and forestry activities. All transactions will be taken into account, whether or not there is an obligation to issue an invoice. Transactions for which there is an obligation to issue an invoice when the recipient is an entrepreneur may not exceed 125,000 euros.
  • Volume of income for all agricultural, forestry and livestock farming activities in excess of 250,000 euros.
  • Volume of purchases of goods and services in the immediately preceding year, excluding fixed asset acquisitions, in excess of 250,000 euros.

Measures affecting corporate income tax

Minimum taxation of 15%
A minimum tax rate of 15% of the tax base is set for taxpayers with a net turnover of 20 million euros or more or who pay tax under the consolidated tax regime.
In addition, this measure is also regulated in the Non-Resident Income Tax, for income obtained through a permanent establishment.
Modification of the Special Regime for Entities dedicated to the rental of housing.
Finally, the rebate is reduced to 40% (previously the rebate was 85%) for the part of the gross amount corresponding to income derived from the rental of dwellings that meet the requirements for the application of this regime.

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