It is a good strategy that is tailored to any entrepreneur or professional and, especially, small and medium-sized companies that, with this formula, can reduce the burden of spending of these companies from now on. And of which we are going to provide you with some other ideas so that you can carry them out with some success in these complex moments in which you have had to live these days.
In the first place, it should be noted that there is no magic recipe to reduce tax expenditures, but a few small "tricks" can be applied to avoid paying the current tax rate, and in this sense one of the most advantageous products is funds. investment, which do allow transfers between them without applying any tax withholding, to later sell them when a tax relaxation begins for their taxation.
At the end of the day, what it is about is that you can contain all your expenses in the store or online commerce. So that in the first moments you are at the disposal of face your most basic needs to promote this very special line of business. Something that will certainly not be easy at all, but with a little perseverance and discipline you will eventually reach your desired goal.
Tax savings on investments
One of the main complaints of small and medium savers about the investment products they hire is the excessive money they have to dedicate to comply with their tax treatment, which is currently established at 21%, and that means that for every 100 euros earned on some of their products, Treasury takes 21 euros. There is no magic recipe to lighten these expenses, that is clear enough, but if you can apply a few little "tricks" to avoid paying the current tax rate.
From the point of view of one of the most advantageous financial products for its holders, such as investment funds, it is feasible, in any of its variants (fixed income, variable, mixed, monetary ...), since they allow transfers between them. without applying any fiscal retention (0%), as long as they keep their capital invested in another fund through a transfer operation. But be very careful with formalizing any type of sales with them (whether partial or total) because in this specific case they will be applied at the time of finalizing the operation.
With investment funds
From this point of view, it is preferable to stay in investment funds rather than close their positions (sell them) and as if it were a savings account, waiting for their balance to increase as the days go by. On the contrary, this very beneficial strategy for subscribers is not applicable to other savings and investment products (deposits, bank promissory notes, stock market, warrants…) That do not allow the direct change to another model of the same product without this tax being applied to them. Either they are sold with the discount of their corresponding taxes or, when they reach their expiration is when the same operation is formalized, and without any possibility of obtaining a tax benefit.
These funds allow clients to take advantage of the growth potential offered by the stock markets at the moment, without risking their assets, being able in most cases to obtain revaluations through a wide selection of products based on any equity market. , both national and international and, in which the emerging ones stand out for their novelty.
The alternatives to opt for a fund of these characteristics are very wide, from those based in emerging markets to those that base their investment in the most suggestive international markets for each moment such as North American, European or Japanese, logically going through those of national character. They can be subscribed from 100 euros, but the most important thing to take them into account is that –unlike investing directly in the stock market- they have a suggested minimum term of permanence that can be up to 5 or 7 years, for which it is constituted. in a class of investment aimed at the medium and long term.
Strategies to improve taxation
It is clear that the tax treatment for financial products is what exists at the moment and cannot be changed until a new change in the regulations, but through small “tricks” we can change this trend, although only in specific products and not in all of them, as you can see.
In investment funds you can keep the shares or make transfers to other funds (even from different managers) to wait for the tax rate of these products to be lowered. Precisely now, more voices of renowned professional prestige are emerging in which this drop in taxes, which probably reached up to 18%, as previously established. Well, if the money invested in investment funds were maintained until that moment, users could save 3% in taxes.
With regard to other products, both fixed and variable income, it would be more difficult to bring this strategy to fruition, if not practically nil. In any case, it would involve subscribing funds in the medium or long term, 2 and 5 years between, waiting for that long-awaited tax cut to come. The same occurred in bank promissory notes or other similar products (contracting them for several years), while in equities this objective would also be possible by allocating our investment to the long term, or precisely when a fiscal relaxation occurs.
Taxation in savings
Achieve a return through dividends and that will be more beneficial from a tax point of view for users than in other investment models. Since, although they are subject to a 21% withholding tax, an exemption from tax of up to 1.500 euros per year is established for all dividends or shares in profits received in the year. Although provided that the following situations occur: if the shares that accrue the dividends have been held in the portfolio for more than two months before collection or if they are held for more than two months after collection. To this it must be noted that currently Spanish equities generate a dividend yield of between 5% and 8%, even more by the most generous companies on the stock index.
Hiring a pension plan also generates important tax advantages. In effect, contributions to these products entitle a reduction in the tax base of the Income Tax for Individuals, allowing its holders to defer taxation and obtain tax savings. All contributions that the participant makes during the year will be reduced from the income tax base, with maximums established by law.
High profitability accounts
Banks and savings banks are launching other types of accounts that offer higher remuneration to their clients, although due to the drop in interest rates, these are rare cases in which exceed 2% and, in which many of the strategies to market them lie in offering their profitability based on tranches, in order to reward the largest amounts deposited.
The hallmarks of this type of product are that they do not generally include maintenance or administration fees and are accompanied by other free services for their holders such as direct debits or obtaining cards totally free.
Due to the recent and continuous drop in interest rates, many of the entities have opted to forget about fixed rates and offer this type of accounts referenced to the Euribor, while in other cases they have eliminated them directly from their banking offer.
The drop in rates in recent months has only impaired the attractiveness that this type of product could have, which in other times came to provide their holders with returns even above 4%, and 6% in some of the promotions best known, while at the moment it is rare that they exceed 2%. For this, the entities that market them adorn them through a series of services that can serve as claim for hiring. Obtaining free cards or being able to make direct debits are some of these claims.
In either case, these accounts offer higher interest than traditional checking accounts, which in the best of cases do not exceed 1%. The downward trend in interest rates also affects the supply of these products. Some entities have directly stopped having them in their banking offer, while others forget about fixed rates and choose to reference them to the Euribor, the index to which more than 90% of mortgages are referenced. To this it must be noted that currently Spanish equities generate a dividend yield of between 5% and 8%, even more by the most generous companies on the stock index.