The countdown to the start of tax filing has already begun, as the process this year is showing differences, with dates already “locked in”. The changes are not limited to the process but extend to the tax that certain categories of citizens will be required to pay. These changes affect, among others, freelancers, taxpayers who have carried out property renovations, owners of closed homes who rented them out or made them available through Airbnb, and farmers with dependent children.

The new tax reliefs arise from recent regulations already in place and are expected to be reflected by a significant margin in 2025 tax returns. These reductions are expected to ease the tax burden for different categories of taxpayers. For example, freelancers will benefit from the abolition of the business tax, while taxpayers who undertook property renovations or upgrades in 2024 will see reductions in their income tax thanks to the deductions provided for renovation costs. In addition, property owners who operated foreclosed homes through long-term leases or Airbnb will be exempt from paying tax on rents for the last quarter of 2024. Finally, farmers with dependent children will see an increase in the tax-free threshold and corresponding reductions in their taxes.

In detail:

1. Taxpayers with property renovations: Taxpayers who renovate their property in 2024 can reduce their income tax by up to EUR 3,200 for five years, with expenses of up to EUR 16,000. The benefit depends on the amount of the renovation expenditure, e.g. for an expenditure of 10,000 euros, the relief is up to 2,000 euros per year.

The benefit depends on the amount of the renovation expenditure.

2. Freelancers: The abolition of the business tax reduces the tax by 325 euros for all professionals. Especially for those who operate in areas with a population of less than 1,500 inhabitants, the relief is even greater, as the imputed income is reduced by 50%.

3. Employees on commission. This change will appear in the 2025 tax return.

4. Owners of closed houses: Those who rented properties that were closed for three years will not pay tax on rents for the last quarter of 2024 if the lease was entered into after September 8. The tax exemption is valid for 36 months.

5. Farmers with dependent children: Farmers with dependent children will see an increase of 1,000 euros in the tax-free allowance, with the benefit reaching 240 euros per year for farmers with four or more children.

What are the changes being implemented from this year

Under the legislation, by January 15, public entities liable to the government had to register on the AADE platform, while the deadline for posting data is February 28. Entities that are late or send inaccurate data are subject to a fine of €2,500, with an additional €50 for each day of delay.

The submission of tax returns will start on 15 March and will end on 15 July, with no further extensions.

Spouses are required to file a joint return from the year of marriage, with the tax calculated separately for each spouse. If a joint return is filed this year, the change for a 2025 divorce tax return must be reported to the IRS by the end of February.

The AADE will clear approximately 1.3 million individual returns by April 16, 2025, with pre-cleared returns ready for filing by March 15, 2025. Those who file returns by the end of April 2025 and pay in a lump sum will earn a 4% tax rebate.

The tax will be paid in 8 monthly installments, with the first installment due by the last business day of July and the rest by February 2026. If the tax is paid in one lump sum, a 4% discount is available until April 30.