Spanish income tax deductions and allowances 2026

Spain's income tax system (IRPF) includes a broad range of deductions and personal allowances that can significantly reduce your tax bill. Whether you are employed, self-employed, a property owner, or retired, knowing what you are entitled to is one of the most practical things you can do before filing your 2025 tax return in 2026.

Below we outline the main national deductions available to resident taxpayers, along with key property and professional expense deductions to be aware of. Regional deductions vary by autonomous community and are not covered here — it is worth checking what applies in your area.

Personal and family allowances in Spain

These allowances reduce the portion of your income that is subject to tax. They apply automatically based on your personal and family circumstances and do not need to be claimed separately.

Child allowances apply where the child is under 25, lives with the taxpayer, and has an annual income not exceeding €8,000. The same income threshold applies to dependent ascendants. Where two taxpayers are entitled to the same allowance — for example, both parents — it is divided equally between them.

Is it better for married couples to file jointly or separately in Spain?

Married couples can choose between filing individually (declaración individual) or jointly (declaración conjunta). Joint filing is generally more advantageous when one partner earns significantly less than the other, or has no income at all, as it applies a fixed reduction of €3,400 to the combined taxable income — in addition to the standard personal allowance of €5,550 for the first taxpayer.

Where both partners have similar income levels, filing separately is usually more beneficial, as each person applies their full personal allowance independently. It is worth running the calculation both ways before deciding, as the optimal choice depends entirely on your individual circumstances. Note that joint filing is available to legally married couples only — unmarried cohabiting couples cannot file jointly.

Are pension contributions tax deductible in Spain?

Yes. Contributions to qualifying Spanish pension plans are deductible from your taxable income, within the following limits for the 2025 tax year:

• Individual contributions: up to €1,500 per year.
• Employer contributions to a company pension plan: up to €8,500 per year — these can be combined with individual contributions for a combined maximum of €10,000.
• Contributions on behalf of a spouse who earns less than €8,000 per year: up to an additional €1,000.
• Self-employed workers contributing to a simplified occupational pension plan (plan de empleo simplificado): up to an additional €4,250, giving a maximum total of €5,750.

Contributions to the Spanish Social Security system are also fully deductible, reducing your taxable income accordingly. Pension rules can change year to year, so it is worth reviewing your position each tax year to ensure you are making the most of available relief.

Tax deductions for property owners in Spain

The deductions available to you as a property owner depend on whether the property is your primary residence, a long-term rental, or a short-term or tourist let. Tax treatment varies significantly across these categories.

Rental income deductions for residents

If you are a Spanish tax resident renting out a property, you can deduct a range of expenses from your rental income before tax applies. Allowable deductions include:

• Mortgage interest and associated financing costs.
• Repairs and maintenance (but not improvements or extensions, which must be capitalised).
• Insurance premiums, including home, liability, and legal protection insurance.
• IBI property tax and community fees.
• Legal and professional fees, including accountant, notary, and property management costs.
• Capital depreciation at 3% annually, applied to the higher of acquisition cost or cadastral value, excluding land.

For a full breakdown of the fixed costs involved in owning a property in Spain, read our guide to fixed costs for property owners in Spain.

Rental income reduction — how much of your income is taxable?

In addition to deducting allowable expenses, resident landlords renting to long-term tenants can apply a percentage reduction to their net rental income. The applicable rate depends on the contract date and the property's location:

These reductions apply only to long-term residential lets, not tourist or short-term rentals.

What about non-resident property owners?

Non-resident landlords from the EU or EEA pay 19% tax on net rental income after deducting allowable expenses. Until recently, non-EU non-residents — including British, American, and other international owners — were taxed at 24% on gross rental income with no deductions permitted. A July 2025 ruling by Spain's National Court has changed this: non-EU non-residents can now also deduct allowable expenses before the 24% rate is applied, bringing them closer to parity with their EU counterparts.

You can read more about the costs involved in buying in Spain in our guide to taxes when buying a property in Spain.

IBI and home insurance

The IBI (Impuesto sobre Bienes Inmuebles) is an annual local property tax that all property owners in Spain are required to pay. For rental properties, it is fully deductible as an expense against rental income.

For more detail on how IBI is calculated and when it falls due, read our guide to IBI property tax in Spain. Home insurance premiums are also deductible for rental properties — for guidance on how home insurance works in Spain, see our home insurance guide.

Tax deductions for the self-employed in Spain

If you are registered as an autónomo (self-employed), a wide range of business-related expenses are deductible from your taxable income, provided you can support them with proper invoices and documentation. The main deductions include:

• Social Security contributions: fully deductible and typically the largest single deduction for autónomos.
• Office and home office expenses: deductible on a proportional basis, including water, electricity, internet, and property tax — calculated according to the percentage of your home used for professional activity.
• Vehicle costs: petrol, repairs, parking, and depreciation, proportional to professional use.
• Private health insurance: up to €500 per year for yourself, and €500 per year for your spouse and each dependent child.
• Professional training directly related to your activity: fully deductible.
• Professional subscriptions, trade association fees, and costs for attending conferences or trade fairs.
• Accounting, legal, and advisory fees.

For a broader overview of what the self-employed pay in Spain, read our guide to how much tax the self-employed pay in Spain.

Are charitable donations tax deductible in Spain?

Spain offers generous tax relief on donations to qualifying non-profit organisations, NGOs, and foundations registered under Law 49/2002. The deduction rates for the 2025 tax year are as follows:

• 80% deduction on the first €250 donated to a qualifying organisation in a tax year.
• 35% deduction on amounts above €250 (one-off or first-time donors).
• 40% on amounts above €250 if you have donated to the same organisation for at least two consecutive years.
• 45% on amounts above €250 if you have donated to the same organisation for three or more consecutive years, provided each donation was equal to or greater than the previous year's amount.

The total amount you can claim in donations is capped at 10% of your taxable income (base liquidable) for the year. A tax certificate from the recipient organisation is required to apply the deduction.

Donations to political parties are also deductible, up to a maximum of €600 per year, at a rate of 20%. Donations to other entities — including foundations and associations recognised as being of public interest — may qualify for a 10% deduction.

Frequently asked questions

Can I deduct mortgage interest on my main home in Spain?

The national deduction for mortgage interest on a primary residence was abolished in 2013. It remains available only for those who purchased their main home before 1 January 2013, who can continue to claim relief under the transitional rules. Several autonomous communities offer their own regional deductions for first-time buyers or specific property types — it is worth checking what applies in your area.

What VAT rate applies when buying a new property in Spain?

New residential properties are subject to a reduced VAT rate of 10%. Properties classified as officially protected housing (Vivienda de Protección Oficial, or VPO) benefit from a further reduced rate of 4%. These rates apply to the purchase of new builds only; second-hand properties are subject to Transfer Tax (ITP) rather than VAT, and the rate varies by autonomous community.

Are there any new deductions for 2026 that I should know about?

Two changes from 2025 are worth noting. First, a new 30% reduction on income from literary, artistic, or scientific works applies to creators and performing artists whose earnings in 2025 exceed 130% of their average income from the previous three years — up to a maximum base of €150,000. Second, the Spanish government announced in January 2026 a proposed 100% IRPF exemption on rental income for landlords who do not increase rent on lease renewals in 2026. This measure had not been formally enacted at the time of writing and would apply to the 2026 tax year filed in 2027 — it is worth monitoring for updates.

Do I need a professional to claim all available deductions?

For straightforward situations — a single employment income and no property or overseas assets — many people file successfully using the Agencia Tributaria's Renta Web tool. However, if you have rental income, self-employment income, foreign assets, or income from multiple countries, the risk of missing deductions or making errors is significant. A qualified gestor or tax advisor is well worth the cost in these cases.

You can find qualified accountants and gestores in your area through our directory of tax professionals in Spain.