Regional Deduction Rules in Andalusia

✓ verified by Cristina Gómez Torrens Senior International Accountant

Welcome to the Andalusia Regional Deductions guide for the current fiscal year.  Andalusia offers a range of tax advantages that can enhance your income tax refund. Whether you're a student, parent, property renter, or investor, this guide provides essential insights into maximizing your tax benefits under the regional rules applicable in Andalusia. From educational expenses, rental deductions, and family-related benefits to specific incentives for young entrepreneurs and investments in newly created entities, you'll find a variety of tax reliefs tailored to support different aspects of life and economic activity in Madrid. By understanding and utilizing these deductions, you can significantly reduce your tax liabilities and optimize your financial planning. Dive into the specifics and learn how you can benefit today.

What are the regional deductions in Andalusia?

The tax benefits in Andalusia known as regional deductions offer taxpayers a delightful discount on their taxes. These deductions are specifically tailored to the Personal Income Tax system of this autonomy. While the overall income tax return process is conducted nationwide in Spain, Andalusia provides its residents with unique deductions. This is because the revenue from income taxes is divided between the state and individual communities. To qualify for these appealing deductions, residency in the specified territory during the previous year and meeting specific criteria are essential. 

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Investment in Main Residence

If you are under 35 and bought or rehabilitated your main residence (considered as protected) in 2023, you can deduct 5% of the amounts paid during the year.

Rental of Main Residence

If you are under 35 with a rental contract for your main residence, you can deduct 15% of the amounts paid up to a maximum of €600 and €900 if you have a disability.

Birth

If you had a child during 2023, you can deduct €200 per child and €400 if you live in a municipality at risk of depopulation.

International Adoption

If you carried out an international adoption in 2023 and registered this adoption in the Civil Registry, you can deduct €600 for each adopted child.

Single-Parent Families and Dependent Ancestors

You can apply a deduction of €100 if you are a single parent as long as your children are minors and live with you or are adults with disabilities or incapacitated (in both cases by judicial resolution).

Additionally, there will be another €100 deduction for each ancestor over 75 years old who meets the requirements of the general deduction and lives at the single-parent family home.

Large Family

The main requirement for this deduction is having a large family card.

• General category large family: €200
• Special category large family: €400

Educational Expenses

If you have children and have incurred school or extracurricular expenses, such as languages or computing, you can deduct 15% of these amounts. The maximum deduction amount applicable is €150.

Disability

If you have a recognized disability equal to or greater than 33%, you can deduct €150 in your return.

Spouses or Partners with Disability

If your partner (married or de facto) has a recognized disability equal to or greater than 65% and does not file a tax return, you can apply a deduction of €100.

Assistance to People with Disabilities

Generally, if you are entitled to apply the minimum for disability for ancestors or descendants, you can apply an additional €100 deduction; if you also require the help of third parties hired, you can deduct 20% of what you have paid to Social Security with a limit of €500 annually.

Domestic Help

If you have employed and pay Social Security for a household employee, you can deduct 20% of the contributions for this employee in Social Security. This deduction has a limit of €500. It is essential to have the right to the general deduction for descendants and receive income from work or economic activities.

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Shares or Participations in Companies

If you have invested in the acquisition of shares and/or participations of companies established in Andalusia, you can apply two types of deductions depending on the type of company:

20% of the amount invested if it is any commercial company (S.R.L, S.A., S.A.L, S.R.L.L., and S.C) with a maximum of €4,000 annually.

50% of the amount invested if it is a company created or participated by Universities or Research Centers with a maximum of €12,000 annually.

Legal Defense

In case you have been dismissed from your job and have opened a judicial procedure against the company, you can deduct €200 both in individual and joint taxation.

Donations with Ecological Purpose

You can deduct 10% of the amounts donated (with a maximum of €150) if you have donated during the year to public entities in Andalusia that defend and conserve the environment or non-profit entities as long as their exclusive purpose is the defense of the environment.

Take the hassle out of tax season with Xolo

At this point, you have a couple of options: 

1. Memorize all the information we've provided and file your tax return on your own, hoping everything goes smoothly. 
2. Gather your invoices for all of your deductible expenses as a freelancer, upload them to Xolo, and let our team of experts handle your VAT and income tax returns like the pros we are. 

Sign up to Xolo and let us help take the hassle out of tax season.