Tax deductions in Spain – Deductions against your tax in Valencia

If you are a resident living in the Valencian region of Spain and must present an annual Renta tax declaration to the Spanish tax office then we have some good news for you. Thanks to the tax deductions in Spain the number of expenses that you can claim against your income has just increased. So, check out which of these you might be eligible to present and preserve more of your income.

Renta Tax declaration – Tax deductions in Spain

The 30^th June is the final date for residents in Spain to declare their income. Each year this relates to the previous tax year which goes from January to December. So, your declaration in June 2024 refers to the tax year of January 2023 to December 2023. You will need to keep this in mind when working out what you can present as an expense.

There are different groups who benefit in different ways. So, for example, there are deductions for those adopting children, with large families, single parents and taxpayers with disabilities. Tax deductions are also made for those on maternity leave and companies who make donations to particular causes such as artistic, cultural and sports projects.

Companies can also benefit from tax reductions linked to the creation of employment and investment in research and development. For the self-employed, VAT deductions are available for office expenses, travel and transportation and for hiring external services. There are also personnel expenses that everyone can benefit from.

New deductions

Although there have always been expenses that you can deduct, this year, in Valencia, the number has increased. These can be balanced against your income and can reduce the amount of income tax you have to pay. Of course, not everyone has to pay income tax, it depends on the amount you earn and its source, you might have a nil return anyway. But some people are still eligible for tax and these concessions should help. The full list is published in the Agencia Tributaria’s latest manual of 76 pages.

Oral health expenses – deduction of 30% (up to 150€)

Vision expenses – including expenses for purchasing prescription lenses, contact lenses and cleaning solutions for glasses and contact lenses – deductions of 30% (up to 100€)

Mental health expenses – this includes members of the family – deductions of 30% (up to 150€)

Expenses resulting from highly complex chronic diseases – (up to 100€ or 150€ for large or single-parent families).

Expenses resulting from Alzheimer’s – (up to 100€ or 150€ for large or single-parent families)

Sports expenses – including gym membership – deduction of 30% (up to 150€)

School supplies – including books, computers and uniforms

Home improvements – certain expenses related solar panels.

As you can see, there are limits to how much you can claim. But these are increased if you have a disability or are over 65.

There are common themes behind these deductions. The idea is that by offsetting them against tax, you can encourage a healthy lifestyle. In addition to promoting the welfare of the population and encourage people to make changes that are considered to be beneficial.

Terms and conditions

The deductions only apply to those earning below a certain figure. The income is usually around the 33,000€ mark for one individual but 48,000€ if a joint declaration is being made. There are some other specific conditions that may apply. It is therefore very important that you check out with your tax adviser whether you qualify or not.

You must also ensure that you can prove the payment. You will need facturas (invoices) that show how much you have paid, and the payment should be made by bank transfer or direct debit. In the case of medical treatments, they must be provided by health professionals who are correctly registered.

It is your accountant who has the details and will have read the 76 pages. They should be able to advise you of your entitlement and make the calculations for you. So, check out the list, collect your facturas and see a difference in your tax bill.