Relevant Regional deductions Depending on Autonomous Community

When you move to an expat hub like Madrid, Catalonia (Barcelona), Valencia, or Andalusia, the regional tax rules can change your final balance significantly. These regions have specific deductions that you often have to add manually to your return.

Here is the breakdown of the most relevant regional deductions for expats in these four areas.

🏛️ 1. Madrid: The “Investment & Education” Hub

Madrid is known for being tax-friendly, especially for new residents.

• New Residents (Expat Special): As of 2024, if you become a tax resident in Madrid and invest in assets (stocks, bonds, property—excluding your main home), you can deduct 20% of the investment from the regional part of your tax.
• Educational Expenses: You can deduct 15% of tuition fees for mandatory schooling and 15% for language classes. You can also deduct 5% for school uniforms.
• Rental: 30% of your rent (up to €1,237) if you are under 35 (or up to 40 with dependents).

🎨 2. Catalonia: Focused on Young Tenants

Catalonia has strict income limits for its deductions, so they are primarily for those earlier in their careers.

• Rental:10% of rent paid, capped at €300 (or €600 for large families).
  • Requirements: You must be ≤32 years old, or have been unemployed for 183+ days, or have a disability.
  • Income Limit: Your base income cannot exceed €20,000 (individual) or €30,000 (joint).
• Interest on Loans: Deduction for interest paid on loans for Master’s or Doctorate studies.

🍊 3. Valencia: The “Everyday Life” Deductions

Valencia offers a wide range of small “lifestyle” deductions that add up.

• Rental: 20% of rent (up to €800). This increases to 25% (up to €950) if you are under 35 or have a disability.
• Support Classes: 25% deduction for private tutoring or support classes for children in subjects like languages or computer science.
• Health & Wellness: Deductions for expenses related to optical health (glasses/lenses), dentists, and even gym memberships (highly specific requirements apply).

☀️ 4. Andalusia: Domestic Help & Education

Andalusia has become much more tax-competitive recently.

• Domestic Help:20% of the Social Security costs for a household employee (cleaner/nanny), capped at €500.
  • Requirement: Both partners must work, and you must have children or be over 75.
• Educational Expenses: 15% of the cost of language or computer classes for your children, capped at €150 per child.
• Rental: 15% of rent (up to €600) if you are under 35, a victim of domestic violence, or a victim of terrorism.

🚀 Summary of Regional Boxes to Watch

⚠️ Pro-Tip for Expats

The “Wealth Tax” (Patrimonio) is also regional. Madrid and Andalusia effectively have 100% relief (you pay €0), whereas Catalonia and Valencia have much lower thresholds where you might start paying tax on your global assets if they exceed €500,000–€700,000.

Would you like me to create a “Questionnaire” you can use to ask your audience so they can find out which of these deductions they qualify for?

🧐 The “Extra Savings” Questionnaire

Regional Qualification Quiz

This will help you identify which of those extra regional boxes you need to hunt for in your tax software.

Run through these 5 questions to see if you can lower your Spanish tax bill further.

1. Do you have children in school or extracurriculars?

• Andalusia: Did you pay for English/Language or IT/Computer classes? You can deduct 15% (up to €150/child) if your family income is under €100k (joint).
• Madrid: Did you pay for private school tuition, language classes, or uniforms? You can deduct 15% of tuition/languages and 5% of uniforms.
• Valencia: Did you pay for “support classes” (tutoring) in languages or tech? You can deduct 25% of the cost.

2. Are you renting your home?

• Madrid: Are you under 35? You can deduct 30% of your rent (up to €1,237) if your individual income is under €26k.
• Catalonia: Are you under 32 (or have you been unemployed for 6+ months)? You can deduct 10% of your rent (up to €300).
• Andalusia: Are you under 35? You can deduct 15% of your rent (up to €600).
• Valencia: Are you renting? You can deduct 20% of your rent (up to €800). This goes up to 25% if you are under 35.

3. Do you hire a cleaner, nanny, or caregiver?

• Andalusia: Do you pay Social Security for a household employee? You can deduct 20% of those contributions (up to €500).
• Madrid: Similar to Andalusia, you can deduct 20% of the Social Security costs for domestic help (up to €450).

4. Have you moved to Madrid recently (2024 onwards)?

• Madrid (The “Mbappé Law”): Did you move from abroad and invest in stocks, bonds, or a business? You might be eligible for a 20% deduction of that investment amount against your Madrid regional tax, provided you stay for at least 6 years.

5. Do you pay for a Gym or Health services in Valencia?

• Valencia: This is the most unique one! You can deduct 30% (up to €150) of expenses for:
  • Gym memberships or federated sports.
  • Health professionals: Traumatologists, dieticians, physiotherapists, and podologists.

🏁 Final Step: Where to find these in the Portal

When you are in Renta Web (the official portal):

1. Navigate to the “Deducciones Autonómicas” section.
2. The system will ask for your Residencia Habitual (where you lived for 183+ days).
3. Once selected, it will show you a specific list of boxes for that region.

Expat Tip: Don’t rely on the “Borrador” (draft) to include these. The Tax Agency usually doesn’t know you have a child in language classes or that you are under 35 and renting. You must check these boxes manually.

Official Resources: For the most up-to-date tax information, official calendars, and technical details, you can visit the Agencia Tributaria website here.

Notice: This content is intended for taxpayers under the common regime of the Spanish Tax Agency (AEAT). The “Foral” systems of Navarra and the Basque Country operate with their own independent regulations, deductions, and tax calendars. If you pay taxes in one of these regional jurisdictions, please consult with a local advisor or your specific regional tax office.

The Foral System: A World Apart

When discussing Spanish taxes, it’s a mistake to group everyone together. The País Vasco (Basque Country) and Navarra operate under a “Foral” (Chartered) system.

• Financial Autonomy: Unlike the other 15 regions, these territories have the power to manage, collect, and regulate their own taxes entirely. They then pay a “cupo” (quota) to the Spanish State for general services.
• Different Rules: They have their own tax calendars, their own “Renta” forms, and importantly, their own tax brackets and deductions. For example, in the Basque provinces (Álava, Guipúzcoa, and Vizcaya), the deduction for primary residence remains much more generous than in the rest of Spain.
• Unique Tech: They use their own digital systems (like TicketBAI for businesses or Hacienda Foral portals) rather than the standard AEAT Renta Web.

Key takeaway: If your readers live in Bilbao, San Sebastián, or Pamplona, the “general” Spanish tax rules often do not apply to them.

Quick Comparison: Top vs. Bottom (2026 Campaign)

This table shows how the “Regional” portion of the tax can vary significantly for high earners.

Here are the estimated/confirmed dates for the 2025 Tax Campaign (filing in 2026) in those areas:

• State (AEAT): April 8 – June 30, 2026.
• Navarra: Starts mid-April (expected April 7-14) – ends late June.
• Gipuzkoa: Usually starts very early (early April) – ends June 30.
• Bizkaia: April 10 – June 30.
• Álava: Early April – June 25.