Discover the Essential Deductions for Your Annual Tax Return

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Posted and filed under Taxes in Spain.

Discover the Essential Deductions for Your Annual Tax Return

Governments often offer an array of deductions, yet applying for all of them can be quite daunting. Here, we will focus on the most important ones that we believe you can take advantage of.

National deductions

Deductions for Solar Panels

This deduction has been available since 6th October 2021 and runs to 31st December 2024. Its mainly for the works you carry out on your property to improve its efficiency. The percentage should be at least 30% and you will need an Energy Performance Certificate (EPC) prior to the work being carried out and another one after to prove the improvements.

You can deduct 40% of the installation works with a maximum of 7.500€. In case you applied for a grant for solar panels, this will reduce the deduction.

Deductions for Electric Cars

This one has been available since 30th June 2023 and runs to 31st December 2024. You have to buy a new electric car (not valid for second hand). It also covers the plug installation.

You can deduct 15% and the maximum base is 20.000€ which can save you 3.000€ in total. For the plug installation, there is a 15% too with a maximum base of 4.000€. In other words, you can save 600€.

Deductions for Valencia

Deductions for Solar Panels

Its similar to the national one but for the regional share of the income tax you can deduct 40% of the installation. However, you should register this installation on the solar panel registry of Valencia. Also, you can get a 20% deduction if the property is a second residence.  The base limit is 8.800€ per year.

Rental of a Property

If you are living in a rented property you can deduct 20% of what you pay with a limit of 800€. It can increase up to 25% with a limit of 950€ as long as you have one of the following criteria:

  • Being younger than 35 years old
  • A physical disability of 65% or mental disability of 33%

If you have both, the deduction will be 30% with a limit of 1.100€.

The contract must be for a long term period. Holiday contracts or lower than a year are not valid. Besides this, your tax base should not be higher than 30.000€ if you choose the single option or,  47.000€ if its the joint option.

Medical specialist expenses

You can deduct  30% of some medical expenses such as:

  • Dentist: Max 150€
  • Mental health: Max 150€
  • Optician: Max 100€

Your tax base should not be higher than 32.000€ if you choose the single option, or 48.000€ if its the joint option. Also, the doctor should be registered and provide you with an invoice.

Gym fees

You can deduct 30% of expenses associated with the practice of sport and healthy activities. If you are older than 65 years old, it can be 50% and for 75 years old 65%. The maximum limit is 150€.

Your tax base should not be higher than 32.000€ if you choose the single option, or 48.000€ if its the joint option.

Deductions for Murcia

Deductions for Solar Panels

The deduction in Murcia is 10% for solar panels with a maximum limit of 1.000€. The same as Valencia, this should be registered once the works have been carried out. 

Rental of a property

A deduction of 10% with a maximum limit of 300€. You should  match at least one of the following criteria:

  • Being younger than 35 years old
  • Being “familia numerosa”
  • A disability of 65% or more

The contract should be legalised.

Your tax base should not be higher than 24.380€.

We know how difficult it can be to process all the requirements to apply for the deductions. The best thing to do is check with our tax expert to see the possibilities you can have. He will be delighted to assist you.

2 Comments

  • Alexey Nosov

    Hello. Are there any deductions specific to Andalucia by analogy with Murcia and Valencia above? Are there any deductions for private medical insurance and/or other medical expenses in Spain as a whole or Andalucia in particular? My mother-in-law who is 91, an U.S. expat, and now a citizen of Spain, lives in a small village in province of Malaga and needs to use a lot of private medical services because of limited availability of government-run medical care nearby. So, I was wondering if we can deduct any of that on her Spanish tax returns. Thank you in advance for the information!

    • Nicola Ryan

      Morning Alexey,

      Thank you for your enquiry.

      Unfortunately, there are no deductions for private medical cover in Andalucia, we are sorry.

      Nicola

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