The Renta 2026 campaign — covering the 2025 tax year — opens for filing on 2 April 2026. Every year, millions of taxpayers confirm the AEAT draft without checking whether they have applied all the deductions they are entitled to, in many cases paying more tax than necessary or missing out on significant refunds. This guide systematically sets out all the state deductions and the main regional deductions currently in force for the 2026 income tax return, along with base reductions which, while technically a different mechanism, have an equivalent effect on the final tax liability.
Why the Hacienda draft does not apply all deductions
The draft return that the AEAT makes available from 2 April 2026 is built from data that third parties have reported to the tax authority: employer withholdings, bank account income, investment fund transactions, Social Security and SEPE benefits, and property details. However, there are entire categories of deductions that the AEAT cannot incorporate automatically because they depend on circumstances the taxpayer has not previously communicated or that are not in its databases.
Deductions that the draft routinely omits or applies incorrectly:
- Regional deductions of any kind: the Renta WEB system incorporates some but not all, and sometimes fails to detect a change of tax residency between regions
- Charitable donations deductions: the AEAT receives certificates from qualifying entities, but there may be delays or errors in the data exchange
- Investment in new company shares: requires the company to have notified the AEAT of its qualifying status
- Energy efficiency deductions: requires the taxpayer to manually enter energy performance certificate data and installer invoices
- Sole trader business expenses under direct assessment: income is shown from quarterly returns, but expenses must be manually entered
- Carry-forward of prior year losses: the AEAT shows these only if the amounts are in its records; errors in the prior year return may cause them not to appear
The recommendation is to always treat the draft as a starting point, not as a complete return.
State deductions: complete catalogue
State deductions are those regulated in the IRPF Act (Law 35/2006) and apply regardless of the Autonomous Community of residence.
Maternity deduction
Who qualifies: Women who are employed or self-employed, with children under 3 years old.
Amount: €1,200 per year per child under 3 (€100/month). Can be requested as a monthly advance payment through Form 140.
Important: The deduction continues during the child’s first three years even if the child was born in a prior tax year. In 2025 a child born in 2022 generates the deduction until its third birthday in 2025.
Childcare costs deduction
Who qualifies: Working mothers with children under 3 enrolled in authorised nurseries.
Amount: 1,000 euros per child per year as a supplement to the maternity deduction, for nursery costs actually paid.
Large family deduction
Who qualifies: Families with three or more children, single-parent families with two or more children, or families with a disabled member.
Amount: €1,200 per year for ordinary large families; €2,400 for special category large families. Additional €600 per child above the minimum threshold for ordinary large families.
Dependent ascendants deduction
Who qualifies: Taxpayers with ascendants (parents, grandparents) living in the same household, aged over 65 or with a disability above 33%, with income below €8,000 per year.
Amount: €1,150 per year.
Housing purchase deduction (transitional, pre-2013 mortgages only)
Who qualifies: Taxpayers who acquired their primary residence on or before 31 December 2012 and are paying a mortgage taken out before that date for the purchase or renovation of that property.
Amount: 15% of annual amounts paid (capital and interest) on a maximum base of €9,040 per taxpayer (€18,080 for a couple filing jointly).
This deduction is not available for mortgages taken out after 1 January 2013.
Investment in new company shares
Who qualifies: Taxpayers who invest in shares of newly incorporated companies (incorporated in the last three years) or companies incorporated up to seven years ago in certain sectors, with net assets below €400,000 and fewer than 50 employees.
Amount: 50% of the investment, on a maximum base of €100,000 per year. Maximum annual deduction: €50,000. This is one of the most generous deductions in the Spanish tax system.
Additional benefit: Capital gains from selling the shares can be reinvested in another qualifying company tax-free.
Charitable donations (Mecenazgo Law)
Amount:
- 80% on the first €250 donated to qualifying entities (foundations, NGOs, religious institutions registered with the AEAT)
- 40% on the remainder (above €250)
- 45% on the remainder if donations to the same entity exceed €250 and the donor has donated the same or higher amount in the two immediately prior years (loyalty bonus)
Qualifying entities: those included in the AEAT’s register of non-profit entities eligible under Law 49/2002. Each entity must issue a certificate specifying the amount and the entity’s registration number.
Energy efficiency deductions
Three tiers depending on the type of improvement:
20% deduction: Works on the primary residence (or rented-out property) that reduce heating and cooling energy demand by at least 7%. Maximum deductible base: €5,000. Available through 31 December 2026.
40% deduction: Works on the primary residence that reduce heating and cooling energy demand by at least 30%, or improve the energy performance by at least one letter. Maximum base: €7,500. Available through 31 December 2026.
60% deduction: Complete building renovation (residential buildings, not individual dwellings) that reduces primary energy consumption by at least 30%. Maximum base: €5,000 per dwelling per year, applicable over the years of the works. Available through 31 December 2026.
Pension plan contribution base reduction
Who qualifies: All taxpayers making contributions to pension plans, simplified employee pension plans (PPES), corporate pension plans or other qualifying vehicles.
Reduction limits:
- €1,500 per year for individual contributions to personal pension plans
- €8,500 per year for employer contributions (or individual contributions to employment pension plans)
- Total cap: €10,000 per year
For sole traders contributing to the simplified employment pension plan (PPES), the maximum is €4,250 per year in addition to the general €1,500 limit — total of €5,750.
This is a base reduction, not a deduction from the tax liability: it reduces the taxable base before the brackets are applied. At the 37% marginal rate, a €5,750 PPES contribution saves approximately €2,128 in income tax.
Regional deductions: examples by Autonomous Community
Madrid
- Primary residence rental deduction (tenants): 20% of annual rent up to a maximum of €840 per year. Applies to residents under 35, and to residents of any age with disabilities above 65%.
- Education expenses: Deduction of 15% of schooling costs, 10% of book and materials costs, 15% for language learning, and 5% for sports and physical activity for children aged 3–16 (combined maximum: €900/€1,000 depending on taxpayer income).
- Voluntary blood, organs or tissue donation: Fixed deduction of €60 per year.
Andalusia
- Investment in habitual residence (protected housing): Up to €660 deduction for first-time buyers of officially protected housing under certain conditions.
- Expenses for dependent ascendants: Supplement to the state deduction for elderly care expenses.
- Single-parent families: €100 additional deduction.
Catalonia
- Deduction for primary residence rental (tenants): 10% of annual rent, maximum €300 per year, for tenants under 33, or recently widowed, or with two or more children, subject to income limits.
- Investment in entities listed on the Alternative Equity Market (MAB/BME Growth): 20% of the investment.
Valencian Community
- Large family deduction: €330 per year for ordinary large families, €660 for special category.
- School materials: Up to €110 per child in compulsory education.
- Childcare expenses: 15% of expenses for children under 3, maximum €270/child/year.
All regional deductions have income limits and specific conditions. The Renta WEB system incorporates some regional deductions automatically, but the taxpayer should verify each relevant deduction manually, particularly after a change of registered address between Autonomous Communities.
Base reductions with deduction-equivalent effect
Employment income reduction: The standard employment income reduction (reducción por rendimientos del trabajo) reduces the net employment income used to calculate the taxable base. For 2025 income:
- €5,565 for net employment income up to €13,115
- Proportional reduction for income between €13,115 and €16,825
- €2,000 fixed for income above €16,825
Reduction for irregularity (multi-year income): Income generated over more than two years or obtained notoriously irregularly is reduced by 30%, on a maximum base of €300,000 per year. Typical applications: severance payments, long-term deferred bonuses, income from termination of civil servant status.
Economic activity (sole trader) income reduction: Sole traders under direct assessment can apply a reduction of up to €2,000 (reduced income) plus the standard employment income reduction of €2,000, for a total of up to €3,700 depending on net income level.
The most commonly missed deductions
From our experience in preparing income tax returns for individuals and businesses, the following deductions are the most frequently missed:
- Investment in new company shares — taxpayers who invested in startups often do not claim this 50% deduction
- Carry-forward capital losses from prior years — losses from investment funds or shares offset 2025 gains
- Energy efficiency works — taxpayers who carried out renovations in 2023–2025 often do not claim the energy deduction
- Loyalty bonus on charitable donations — the jump from 40% to 45% for consistent donors to the same entity
- PPES pension plan contributions — sole traders who opened a simplified employment pension plan in 2024 or 2025
- Regional deductions — particularly after moving between Autonomous Communities
How BMC can help
BMC’s tax advisory team assists individuals in reviewing their draft return to ensure all applicable deductions are identified and correctly applied before filing. We also advise on tax planning strategies — charitable donations, pension contributions, investment in qualifying companies — that can materially reduce the income tax liability in the current year.
Contact us from 2 April 2026 to arrange your pre-filing return review.
