What are the tax deductions available in Spain?

[Anderson]

May I know more details about the tax deductions in Spain?

 

Tax deductions in Spain are available to individuals and businesses alike. For individuals, the most common tax deduction is the Personal Income Tax (IRPF). This deduction allows taxpayers to reduce their taxable income by a certain percentage depending on their income level. Other deductions include those for mortgage interest payments, donations to charities, medical expenses, and contributions to pension plans.

[Olga]

There are several types of deductions can be (personal) based on the allowances>

Individual allowance - €5,550
65 years and over - €6,700
75 years and over - €8,100 

 

Child Allowance (less than 25, living in and income of a child is less than €8,000):

• First child - €2,400
• Second child - €2,700
• Third child - €4,000
• Fourth & additional children - €4,500
• Additional for a child under 3 - €2,800

Parental Allowance (mother or father living in with an income less than €8.000)

• Over 65's - €1,150
• Over 75's - €2,550

[Anderson]

Thanks @Olga I heard there are deductions for renting an apartment especially for young people, is it true?

[Olga]

@Anderson, yes, but there are some points to consider:

State deduction: you can include this in your tax declaration if you have been living in the same rental apartment since before the year of 2017, also if you have renewed your contract or prolonged it. You are allowed to deduct 10.05% of your rent on a maximum amount of €9,040 per year, so there is a maximum of €904 that can be deducted from the rent of the property on your income tax return.

Regional deduction: every autonomous region decides on its own conditions.

 

For example, in Catalunia it is possible to deduct 10% of the rent with the maximum of 300 euros per year and 600 euros per family. There are following requirements you need to meet:

• You are 32 years old or younger or widow/-er 65 y.o. or older
• You have been unemployed for than 183 days per tax year
• you have a disability degree of 65% or more
• the total taxable amount may not exceed 20,000 euros and 30,000 euros for big families.
• the rent is more than 10% of your net income

[Yapi]

Are Capital Gains Tax deductions available for the costs associated with renovating my kitchen and bathroom from the sale of my apartment? I acquired this property in 2016. Many thanks.

[Anderson]

In general, yes, they are fully deductible. You need to have all the receipts.