Reaching retirement brings significant changes, including new tax regulations. For individuals over 65 years old, there are multiple tax benefits that often go unnoticed, resulting in excessive tax payments.
The main issue is that these tax reductions are not applied automatically. They require taxpayers to carefully review their Income Tax draft, a task many overlook, thus missing out on significant savings opportunities.
“"Most people over 65 years old may be overpaying taxes without knowing it."
One of the most notable exemptions applies to the sale of a primary residence. Individuals over 65 years old are exempt from paying IRPF (Personal Income Tax) on the capital gains from selling their main home, provided it has been their effective residence for at least three years. This advantage does not apply to those under that age, who must pay tax on the capital gain.
Furthermore, if the sale is not of the primary residence, there is an option to reinvest the money into a lifetime annuity within a maximum period of six months, with a limit of 240,000 euros, to avoid taxation. Failure to meet this deadline is a common mistake among taxpayers.
Another benefit is the increase in the personal and family minimum from the age of 65, meaning a larger portion of income is tax-free. This can lead to unexpected refunds for those who review their draft, even if they are not obliged to file a return.
At the local level, many town councils offer bonuses on taxes such as IBI (Property Tax), waste collection fees, or municipal capital gains tax. However, these aids must be actively requested by citizens to benefit from them.
Finally, taxpayers living with individuals over 65 years old can access family deductions of up to 2,550 euros annually, provided certain cohabitation and income requirements are met. Lack of information or errors in filing often prevent this benefit from being utilized.
