This Wednesday, April 8, the State Tax Administration Agency (AEAT) commenced its annual income tax declaration campaign, corresponding to the 2025 fiscal year. This process, which can be completed online, will continue until June 30, or until June 25 if the first payment is direct debited. This year's campaign is marked by increasing complexity and growing tax pressure on salaries, professional income, rents, and interest. An estimated 1.2 million Canarian taxpayers, the highest number ever, are expected to file their taxes with the Tax Agency.
Among the main national novelties is a deduction in the total net tax liability, designed to eliminate the effective tax burden for those receiving the new Minimum Interprofessional Wage (SMI), set at 16,576 euros annually for 2025. It also aims to reduce the burden for those with employment income below 18,276 euros. This measure, effective from January 1, 2025, requires that gross employment income be less than 18,276 euros and that the taxpayer does not obtain other income, excluding exempt income, exceeding 6,500 euros.
The latest IRPF statistics show that just over 9.3 million filers, 47.45% of the total, have a reduced net income of up to 21,000 euros. In the Canary Islands, this proportion is even higher, reaching 62.6%, with about 680,000 taxpayers in this bracket, highlighting the prevalence of lower incomes in the islands. Thanks to existing deductions and reductions, the percentage of taxpayers paying taxes below 21,000 euros has decreased from 47.45% to 34.86%, with a further drastic reduction expected due to the new SMI deduction.
Another significant novelty is the possibility of early redemption of consolidated pension plan rights, provided contributions have a minimum seniority of 10 years, effective from January 1, 2025. This measure enhances the liquidity of long-term savings instruments, though it is crucial to analyze the tax impact before exercising this option, as the redeemed amount is taxed as employment income in the year of receipt. According to Tax Agency data from 2023, approximately 2.57 million taxpayers save in pension plans.
In the area of professional income, a new reduction for exceptionally obtained artistic activities is introduced, effective from January 1, 2025. Additionally, aid for personal damages to those affected by forest fires and other civil protection emergencies occurring between June 23 and August 25, 2025, is exempt from IRPF. This year's declaration also incorporates the first regularization of contributions to the Special Regime for Self-Employed Workers, corresponding to 2024, requiring self-employed individuals to verify its correct integration. Furthermore, reductions of 35% for agricultural diesel and 15% for fertilizers in agricultural professional income are eliminated for 2025.
Regarding autonomous deductions, managed by the Government of the Canary Islands, the number of deductions remains the same, but with a significant change: the deduction for donations to descendants under 35 years old for the acquisition or rehabilitation of their first home is abolished. In its place, a new deduction for investment in the acquisition of shares and social participations of new entities is added, allowing a deduction of up to 20% of the invested amounts, with a maximum of 4,000 euros. This figure can increase to 6,000 euros and 30% if the investment is made in labor-owned public limited companies of universities or training centers, or cooperatives. The Government of the Canary Islands has also deflated the tax, adjusting individual taxable bases from 36,300 to 37,062 euros and joint bases from 45,500 to 46,455 euros.
