There are a number of steps and options taxpayers can take starting today to reduce the cash portion of their 2025 tax return. These moves range from using electronic payments and collecting e-receipts, to spending on property renovations, activating closed properties and rational preparation for timely filing of tax returns.

The use of electronic payments is one of the most immediate actions that can yield a reduction in taxable income. Until December 31, expenses incurred electronically for 20 professional services, such as plumbers, electricians, hairdressers, legal services, and others, will result in a 30% reduction in taxable income, up to a maximum of €5,000. For example, if someone spends 5,000 euros by the end of the year, they will see their taxable income reduced by 1,500 euros.

Similarly, receipts from doctors and other healthcare professionals count double, making it easier to meet the minimum spending threshold required. For example, a 100 euro receipt from a doctor counts as 200 euro in the total bill, offering a significant convenience.

In addition, spending on property renovations can lead to tax relief of up to EUR 3,200. The legislation provides that expenditure on materials and services related to the energy, functional and aesthetic upgrading of buildings reduces taxable income, spread equally over five years. For example, if someone spends €10,000 on renovations in 2024, they will see a reduction in income tax of €2,000 per year for the next five years.

An important condition is that these expenses are paid by electronic means of payment, and that legal documents are issued detailing the expenditure and the property details.

Opportunities also exist for closed properties. Landlords who make properties available for rent that remain unused for more than three years will be exempt from income tax on rents collected in the last quarter of 2024. This move may provide a good opportunity for landlords to activate old or neglected properties without tax charges, taking advantage of increased demand for housing or commercial space.

Timely filing of the 2025 tax return is also an important factor in reducing the cash tax. For the first time, filing will start on March 15 and those who file by April 30, paying their income tax in a lump sum by July 31, will benefit from a 4% discount. The discount is reduced to 3% for returns filed by June 15 and 2% for returns filed by July 15.

Preparing tax data early and organizing the necessary documents and vouchers are keys to avoid missing out on these discounts.