In this article we will go through deductions and tax allowances in Spain. However, we would like to remind you that taxation in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.
Tax allowances in Spain
Tax residents in Spain are entitled to certain allowances and deductions.
Basic personal allowances
Similarly to the UK, every resident has a basic personal allowance, which rises depending on your age. In 2019:
- every person under 65 has a basic personal allowance of €5,550
- then €6,700 from 65
- and finally €8,100 from 75.
Married couples allowances
If you’re married, you can choose to be taxed separately or as a couple. In Spain, there is a married couples allowance (declaracion conjunta) of €3,400 for the second taxpayer, in addition to an allowance of €5,550 granted to the first. However, you should compare the rate you’ll pay as individuals and as a couple, as it’s not necessarily more advantageous to file together.
Tax deductions for dependants
You can also claim tax deductions for dependants. If you have children under 25 living with you, you can claim the following additional allowances:
- €2,400 for the first child.
- €2,700 for the second.
- €4,000 for the third.
- €4,500 for the fourth.
- An extra allowance of €2,800 for each child under three years.
If you have an elderly relative living with you and your total income is less than €8,000 you can claim an allowance of €1,150 if they’re over 65 and €2,550 if they’re over 75.
Other deductions and tax allowances in Spain
Generally, you can also claim deductions and tax credits for:
- Social security contributions (deducted at source by an employer).
- Pension contributions.
- Mandatory contributions to mutual benefit societies for widows, widowers and orphans upon the death of the participant.
- An allowance for working mothers of up to €1,000.
- Subscriptions to unions and professional societies of up to €500.
- Legal defence expenses up to €300.
- Allowable work expenses of up to €2,000.
- A certain percentage of charitable donations, depending on the nature of the organisation.
Exactly how much you can claim in deductions and tax credits will depend on your personal circumstances. For a complete picture of what you’re entitled to, consult with an expert.
Ábaco Advisers have assisted our clients with all their Spanish legal and tax obligations for more than 20 years. To ensure you’re armed with all the information you need, book a free consultation at one of our offices. We can provide you with the information you need according to your individual circumstances.
In this article we have covered the deductions and tax allowances in Spain, but if you would like more information regarding the taxes you need to pay as a resident or as a non-resident, you could visit those articles: