Regional deductions are among the most frequently overlooked items in a Spanish income tax return. Unlike state deductions — which appear in the Renta WEB draft if the AEAT has the relevant data — regional deductions are not automatically included. Each taxpayer must identify them, calculate the amounts and enter them manually. Every autonomous community sets its own deductions under its legislative competence over the regional half of IRPF, creating a patchwork of tax benefits that can save hundreds or even thousands of euros on the final bill.
What Are IRPF Regional Deductions?
IRPF — Spain’s personal income tax — is a tax shared between the central government and the autonomous communities. Each region has legislative competence over the regional component, which represents approximately half of the total tax. Within that competence, regions may establish their own deductions that apply exclusively against the regional portion of the IRPF liability.
These deductions are in addition to state deductions (the maternity deduction, the energy-efficiency deduction, pension plan deductions, etc.) and are entered in the specific sections of the return reserved for the regional component. The Renta WEB programme includes them in the fields corresponding to each autonomous community, but the taxpayer must activate them manually.
The reason they do not appear in the AEAT draft is that the central tax authority does not have direct information on whether the specific regional requirements are met. That information resides in the autonomous communities’ own registers, which they do not pass on to the AEAT in a systematic way.
Regional Deductions in the Community of Madrid
Madrid offers a broad catalogue of regional deductions that complement the community’s already low regional tax rates:
Birth or adoption deduction: €600 for the first child, €750 for the second and €900 for the third and beyond. Applicable in the fiscal year of birth or adoption. Amounts are increased for children with a recognised disability.
Foster care deduction: €600 for each minor in simple, permanent or pre-adoptive foster care, provided the minor lives with the taxpayer for more than 183 days of the fiscal year.
Educational expenses deduction: 15% of schooling costs at private or state-subsidised private schools for pupils in Early Childhood Education, Primary, Secondary (ESO), Baccalaureate or Vocational Training. The maximum is €900 per pupil. Payment receipts must be retained.
Main residence rental deduction: 30% of amounts paid for the rental of the main residence, up to a maximum of €1,000 per year, for taxpayers under 35 or over 65 with annual income below €30,000 (or €36,000 for joint filers).
Investment in new or recently formed companies: 20% of amounts paid for shares or interests in newly formed companies, with a maximum base of €20,000 per year. The company must meet the requirements of Article 68.1 of the IRPF Act.
Donations to foundations: 15% of donations to foundations domiciled in Madrid that cannot benefit from the state patronage regime.
Regional Deductions in Catalonia
The Catalan Tax Agency (ATC) manages the regional IRPF component for taxpayers resident in Catalonia. The main regional deductions for fiscal year 2025 are:
Main residence rental deduction: 10% of amounts paid during the year for the rental of the main residence, up to a maximum of €300 per year (or €600 for joint filers). Taxpayers under 32, over 65, with a recognised disability of 65% or more, or in a dependency situation may deduct up to €300 even if the percentage is below 10%, provided income does not exceed the established thresholds.
Donations and other contributions to third-sector bodies: 25% of amounts donated to foundations, publicly recognised associations and other bodies whose purpose is to promote socially useful activities in Catalonia, with a maximum base equivalent to 10% of the gross regional liability.
Main residence rehabilitation deduction: 1.5% of amounts invested in rehabilitation works on the main residence, with a maximum base of €9,040.
Environmental protection deduction: 15% of investments in renewable energy installations at the main residence, with a maximum base of €4,000.
Birth or adoption deduction: €150 for the first child, €225 for the second and €300 for the third and beyond, for taxpayers resident in municipalities with fewer than 2,000 inhabitants.
Regional Deductions in Andalusia
Andalusia’s regional deductions are primarily focused on family policy, work-life balance and home ownership:
International adoption deduction: €600 for each child adopted during the year through international adoption procedures.
Deduction for taxpayers with a disability: €100 for taxpayers with a recognised disability of 33% or more, provided they do not hold assets subject to the Wealth Tax above the exempt minimum.
Investment in newly built social housing or housing in depopulation-risk municipalities: 2% of the amount paid for the purchase of an officially protected main residence or a new-build in a municipality classified as at risk of depopulation under regional rules.
Nursery expenses deduction: 15% of costs at nurseries and early childhood education centres (first cycle) for children under 3, with a maximum of €500 per child. Applicable when neither parent is receiving the state maternity deduction with the nursery component.
Main residence rental for work-related relocation: 15% of rent paid for the main residence when the taxpayer has had to relocate for work reasons, with a maximum of €500 per year.
Foral Regime: Basque Country
IRPF in the Basque Country is governed by the foral rules of each of the three Historical Territories (Álava, Bizkaia and Gipuzkoa), set out in their respective Foral Rules on IRPF. Returns are filed with each Foral Treasury, not with the AEAT.
The main distinguishing features of the Basque foral IRPF compared with the common regime are:
Higher personal and family minima. The personal minimum under the Basque foral regime is higher than under the common regime. Minima for dependants are also more generous, with increased amounts for the first children and for children with disabilities.
Deduction for dependants: the Foral Rules provide for direct deductions from the tax liability (not the taxable base) for each child or dependant. These deductions are substantial and produce better outcomes than the common regime.
Main residence rental deduction: in Bizkaia and Gipuzkoa there is a 20% deduction on rent paid for the main residence, with maximum bases set out in each Foral Rule.
Main residence investment deduction: although the deduction for purchasing a main residence was abolished for new acquisitions, taxpayers who had been claiming it before abolition retain the right to transitional arrangements under their own foral conditions.
Research and development activities deduction: the Basque foral regime has specific R&D incentives with its own conditions, which may differ from the common regime.
Foral Regime: Navarre
The Foral Treasury of Navarre manages its own IRPF under Foral Act 22/1998. The most relevant distinguishing features for fiscal year 2025 are:
Own scale with different rates. The Navarre IRPF scale has brackets starting at 13% for the lowest income band and reaching up to 52% for the highest earners, with a different structure from the common regime.
Personal and family minima. Navarre applies its own personal and family minima, generally higher than those of the common regime, which reduces the taxable base.
Foral maternity/paternity deduction. The Foral Treasury of Navarre has its own deductions for the birth or adoption of children, which may differ in amount and conditions from the state deduction.
Main residence rental deduction. Taxpayers who rent their main residence are entitled to a deduction of 15% of rent paid from the tax liability, subject to the limits set out in foral rules.
Donations to Navarre entities. Donations to foundations, publicly recognised associations and other third-sector bodies operating in Navarre may generate deductions under the foral component, with foral percentages and conditions.
How to Claim Regional Deductions in Renta WEB
To enter regional deductions in the IRPF return:
- In Renta WEB, go to the regional deductions section, which is found in the specific section for each autonomous community (the programme identifies it automatically based on the taxpayer’s declared residence).
- Review the catalogue of available deductions for your region and check which ones you qualify for.
- Enter the relevant amount in each field, respecting the maximum limits and conditions of application.
- Retain the supporting documentation for the expenses and circumstances that entitle you to the deduction: nursery invoices, tenancy agreements, birth or adoption certificates, property purchase deeds.
The AEAT may request supporting documentation for regional deductions claimed in any compliance review. If you cannot demonstrate that the requirements were met, the deduction will be reversed with the applicable interest.
At BMC, we review draft returns to identify any applicable regional deductions the taxpayer has not included — particularly in more complex situations: change of region, years with births or adoptions, educational expenses and residential tenancies. If you would like a comprehensive review of your return, contact our tax planning team at /en/fiscal/planificacion-fiscal.
