The LDF for 2025 took effect on February 16: What are the main measures affecting INDIVIDUALS?<\/p>\n

<\/p>\n

Differential Tax on High Incomes<\/strong><\/p>\n

\n
• High income = either \u20ac250,000 for a single person or \u20ac500,000 for a couple<\/li>\n
• For a tax rate of less than 20%<\/li>\n
• The idea is to tax the taxable income at a rate of at least 20 percent. Therefore, if the overall income tax rate calculated on the adjusted taxable income is <20 percent, the contribution is equal to the additional income tax needed to bring the rate up to 20 percent. <\/li>\n
• Applicable to 2025 income<\/li>\n
• A 95% down payment is due between December1<\/sup> and 15, 2025<\/li>\n<\/ul>\n

  Income Tax<\/strong><\/p>\n

  The income tax schedule has been revised and indexed to inflation: +1.8%<\/p>\n

  Additional deduction of \u20ac100,000 for cash gifts to family members<\/strong><\/p>\n

  \n
  • 100,000 euros available for each child, grandchild, great-grandchild,<\/li>\n
  • Terms and Conditions:\n
    \n
    • The donated amount must be used within 6 months to purchase a new building or a building under construction, or to fund energy-efficiency renovation work.<\/li>\n
    • For a primary residence or a property used as a primary residence for 5 years.<\/li>\n
    • The gift must consist exclusively of a sum of money.<\/li>\n
    • The donee may not receive more than 300,000 euros under this exemption (for example, 100,000 euros from both parents and one grandparent, but no more than that)<\/li>\n<\/ul>\n<\/li>\n
    • If there are no children, this provision may benefit nephews and nieces.<\/li>\n
    • Applicability: Applies to amounts paid between February 16, 2025, and December 31, 2026.<\/li>\n
    •  <\/li>\n<\/ul>\n

      Furnished Rentals: Elimination of the Tax Break<\/strong><\/p>\n

      \n
      • Taxation on capital gains from the sale now includes depreciation, which was previously deducted from rental income.<\/li>\n
      • Housing units located in certain assisted living facilities, university housing, nursing homes, or facilities for people with disabilities are not affected<\/li>\n
      • Effective Date: February 16, 2025<\/li>\n<\/ul>\n

        Transfer Taxes on the Sale of Real Property<\/strong><\/p>\n

        \n
        • Tax reduction: May be approved by the departments for the first purchase of a home, provided it is acquired as a primary residence for at least five years<\/li>\n
        • Increase in transfer taxes, up to +0.5 points: may be approved by the departments for property purchases made betweenApril 1<\/sup>, 2025, and March 31, 2028. However, this does not apply to the first purchase of a home acquired as a primary residence. <\/li>\n<\/ul>\n

          The FareWell team is here to assist you.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t <\/div>\r\n <\/div>\r\n \t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

          The LDF for 2025 took effect on February 16: What are the main measures affecting INDIVIDUALS? Differential Tax on High Incomes High income = either \u20ac250,000 for a single person or \u20ac500,000 for a couple For a tax rate of less than 20% The idea is to tax the taxable income at a rate of […]<\/p>\n","protected":false},"author":2,"featured_media":20066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[95],"tags":[],"class_list":["post-20065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-taxation"],"yoast_head":"\n