In the country, there are three tax classes: 1, 1A and 2. The tax class is determined according to age, family situation and number of children.
Class 1
- Single without children
- Separated or divorced person without children (except person divorced for less than 3 years)
Class 1A
- Single with children
- Person aged 64 and over
- Widowed person
- Separated or divorced person with children (except person divorced for less than 3 years)
- Married people with less than 50% of income in the country
Class 2
- Collectively taxed persons (PACS or marriage),
- Widowed persons whose spouse has been dead for less than 3 years,
It is persons separated or divorced during the 3 years preceding the tax year.
Are There Tax-Exempt Income?
According to the law on income tax , certain income is exempt from taxes such as:
- The birth allowances and family benefits within the limits prescribed by law.
- Hours of work on Sunday, at night or on public holidays, overtime.
- Hospital staff, for example, works many hours at night, or on Sundays. This extraordinary work must have been provided for by a suitable collective agreement. The capital and the cash value of an individual life insurance policy.
Do We Have To Establish A Declaration Every Year?
In theory, when the person is not obliged to file a tax return but submits it all the same to the Administration, he is not obliged to do it again the next year. In practice, if the declaration was established a first year, the Administration will probably make the request the following year because the file will be recorded in their database. Through the tax fyle you can have the best submission option.
Mortgage interest
This interest is always deductible (except second home), but in different ways depending on the nature of the property that the loan generating this interest finances. The deductibility varies from € 1,000 to € 2,000 per person. Interest paid for financing a rental residence is fully deductible from the corresponding rental income and therefore reduces the taxable income resulting from rental income.
Interest paid (other than for mortgage loans)
Example: Consumer loan, car purchase or authorized overdraft granted by a bank. The certificates are normally sent by the bank.
Insurance premiums
The two types of special expenses above are capped together at 672 euros per year and per person in the household. The single death insurance premium, outstanding balance which guarantees the repayment of a loan established for the purchase or construction of real estate gives rise to a capped increase in the deduction of insurance premiums of 6,000 € to € 31,200 depending on the age and number of children.
