New IRS rules: what changes and what to do before filing
The IRS filing campaign runs from April 1 to June 30, with submissions made exclusively online through the Tax Portal. This year, changes go beyond cosmetic adjustments - and ignoring them could prove costly.
Key Changes with Direct Impact
1. Tax Brackets and Rates
Updated brackets and a 0.3 percentage point reduction in rates for the 2nd through 5th brackets.
2. Minimum Subsistence Threshold
Increased to 12,880 euros, ensuring full IRS exemption up to this taxable income level.
3. Specific Deduction
Set at 4,597.09 euros for employment income and pensions.
4. Youth IRS - New Regime
Partial or full exemption for up to 10 years for taxpayers under 35, with specific eligibility conditions.
5. Domestic Work
New 5% deduction on domestic work expenses, capped at 200 euros.
6. Tax Consignment
Rises to 1% of the calculated tax, at no additional cost to the taxpayer.
7. New Invoice-Based Deductions
Include books and cultural events - valid only for the current tax year.
Warning - New Reporting Obligation
Stronger fiscal requirements for reporting assets in countries with more favorable tax regimes, including crypto-assets and foreign financial instruments. The goal is to increase transparency and reduce unintentional omissions.
Is Automatic IRS Always the Best Option?
No. Despite covering an increasing number of taxpayers, Automatic IRS does not always present the most advantageous solution. Before accepting the pre-filled proposal, it is essential to review declared income, household composition, deductions, and specific options available - such as Youth IRS or recognized disability situations.
If there is no active validation by the taxpayer, the return is automatically submitted on June 30 - which may delay refunds and prevent subsequent corrections.
What to Prepare Before Filing
Advance preparation is increasingly crucial for the final result. Avoiding the first days of April and the last days of June is equally advisable, to escape technical failures or server congestion on the Tax Portal.
Essential Checklist
Will Refunds Be Lower?
This is a likely scenario for many taxpayers. After the withholding tax changes introduced in 2025 - which brought the withheld tax closer to the actual amount due - many stopped receiving significant refunds or even had to pay additional tax upon filing.
This trend is expected to continue in 2026. It is not a tax increase per se, but rather a correction of the withholding mechanism, which historically benefited the State at the expense of taxpayer liquidity throughout the year.
A careful simulation before filing can help anticipate the result and avoid surprises - or identify forgotten deductions that could make a difference.
This article is for informational purposes and does not replace advice from a certified accountant or tax consultant.
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