Regional Deduction Rules in Baleares

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to your guide on Baleares tax deductions for the year 2026! This comprehensive overview will help you understand the various deductions available to Baleares residents across different life events and financial activities. Whether you’re dealing with family changes, educational investments, residential updates, or supporting local initiatives, these deductions can provide significant financial relief.

What are the regional deductions in Baleares?

The tax benefits in Baleares 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, Baleares 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. 

For certain investments to improve sustainability in habitual housing

You can get a 50% deduction of the amount invested in eligible improvements such as renewable energy systems or water efficiency, with a maximum annual base of €10,000, meaning that you can save up to €5,000.

The requirements are:

• The house must be in Balears.
• It has to be your habitual residence (or from your tenant if you rent the house)
• It has to be under your name
• The renovation must result in a measurable improvement in energy efficiency
• The sum of the taxable bases cannot exceed 33,000 euros in the individual declaration or 52,800 euros in the joint declaration.

Rent of the habitual residence

Two possible deductions:

• 15% of the amounts paid during the year, with a maximum of €530 if you are under 36 years old or over 65
• 20% of the amounts paid with a maximum of €650 if:
  • You are under 30 years old
  • Have been recognized as having a degree of disability equal to or greater than 33%
  • Have the condition of large family
  • Single-parent families with two or more children
  • Have been registered as autonomo for more than 183 days during the year

In any of the cases, the rental contract has to be for satisfying your habitual residence and any member of the family unit is the owner of a property located less than 70 km from the rented property.

The limits in the sum of the taxable bases for applying this deduction change depending on the condition:

• In general: it cannot be higher than 33,000 euros in the individual declaration and 52,800 euros in the joint one.
• Large families (general category) or single-parent families: the sum cannot exceed 39,600 euros in the individual option and 63,360 euros in the joint option.
• Large families (special category): the sum cannot exceed 42,900 euros in the individual declaration and 68,640 euros in the joint declaration.

For certain subsidies and aid granted due to a declaration of an area seriously affected by a civil protection emergency

The amount of this deduction will be the result of applying the average tax rate to the amount of the subsidy in the taxable base. 

Textbook acquisition cost

If you have incurred expenses for your descendants' textbooks, you can deduct 100% of the amounts paid, with a limit of €220 per child.

The amount increases to €350 if the taxpayer meets any of the following conditions: is under 30 years old; has a recognized disability of 33% or more; is entitled to the allowance for ascendants or descendants; or is a parent living with children under parental authority and either forms part of a large family or is a single parent with two or more children.

Depending on the condition of your family, the limit in the taxable base goes from 33,000 euros to 42,900 euros in the individual taxation and from 52,800 euros to 68,640 euros in the joint taxation.

Extracurricular foreign language expenses

You can get a 15% dedution with a limit of €110 per child from expenses incurred in foreign language courses.

The limit in the sum of the taxable bases is 33,000 euros in the individual declaration and 52,800 euros in the joint declaration.

Educational expenses outside the Island

If you have descendants studying higher education courses outside the island and are not economically independent, you can deduct €1,800 as long as the sum of the taxable bases is not higher than €33,000 (individual) or €52,800 (joint).

Rented properties 

If you have a property designated for rental, you can deduct 75% of the expenses incurred in credit insurance premiums for non-payment of rent, up to €440 annually. 

You can also deduct 50% of the amounts paid in property and casualty insurance premiums; repair and maintenance costs ur other expenses with a limit of €1,500 euros in general or €1,800 if you've rented the house to the Administration of the autonomous community or to an entity comprising the instrumental public sector.

Rent derived from job-related relocation

You can deduct 15% of the amounts paid for rent due to job-related relocation to Baleares, with a limit of €440.

The requirements are:

• The rental contract is intended for housing of the taxpayer
• The deposit of the security has been constituted in favor of the Balearic Housing Institute
• The sum of the bases cannot exceed 33,000 euros in the individual declaration and 52,800 euros in the joint declaration
• The temporary transfer does not exceed three years in duration

Compensation for expenses arising from an illegally occupied property

In case you are the owner of an illegally occupied property, you can get a 40% deduction (up to €500) from expenses such as property tax (IBI), waste rate, utility bills or community expenses.

Donations (multiple cases)

Five different deductions:

• Donations to certain entities aimed at research, scientific or technological development or innovation:
  25% of the donations made with the limit of 15% of the total regional tax quota. 
•  Donations, transfers of use or loan contracts and business collaboration agreements, relating to cultural, scientific and technological development patronage and cultural consumption:
  Between 15% and 25% depending on the donation purpose. 
• Donations, assignments of use or bailment contracts and collaboration agreements, related to sports patronage: 
   15% of the donations made with a limit of 660 euros per year.
• Donations to third sector entities:
   25% of the donations, with a maximum of €165. 
•  Donations to entities promoting the Catalan:
   15% of the donations made with the limit of 10% of the total regional tax quota.
  

Taxpayers with disabilities or descendants with this condition

You can deduct according to the degree of disability:

• 88 euros if the disability (physical or sensory) is equal to or greater than 33% and less than 65%.
• 165 euros if the disability (physical or sensory) is 65% or more.
• 165 euros if the mental disability is equal or greater than 33%.

For applying this deduction, the sum of the taxable bases cannot exceed 33,000 euros in the individual declaration or 52,800 euros in the joint one.

Expenses for descendants or foster children under 6 years old (conciliation reasons)

Two deductions:

• 40% with a limit of €660 of the expenses paid in:
  • Stays for children aged 0 to 3 years in nursery schools or daycare centres. 
    
  • Custody service, dining service and extracurricular activities for children aged 3 to 6 in educational centres.
  • Hiring a person to care for the minor
• 50% with a limit of €900 if you are under any of these circumstances:
  • You are under 36 years old
  • You have a degree of disability equal or greater than 33%
  • Be considered and entitled as a large family
  • Single parent with two or more children
  • You've been registered as autonomo during at least 183 days during the year

The limits in the sum of the taxable bases for applying this deduction change depending on the condition:

• In general: it cannot be higher than 33,000 euros in the individual declaration and 52,800 euros in the joint one.
• Large families (general category) or single-parent families: the sum cannot exceed 39,600 euros in the individual option and 63,360 euros in the joint option.
• Large families (special category): the sum cannot exceed 42,900 euros in the individual declaration and 68,640 euros in the joint declaration.

Birth or Adoption

You can deduct €800 if you have a child during 2025, €1,000 for the second, €1,200 for the third, and €1,400 for the fourth and subsequent children.

In case of birth, the limit for the application is that the sum of the taxable bases is not higher than 52,000 euros in the individual taxation and 84,480 euros in the joint taxation. 
In case of large families or single-parented families, the amounts go from 63,360 euros in the individual option to 101,376 euros in the joint one.

In case of adoptions, the limit for the application is that the sum of the taxable bases is not higher than 33,000 euros in the individual taxation and 52,800 euros in the joint taxation. 
In case of large families or single-parented families, the amounts go from 39,600 euros in the individual option to 63,360 euros in the joint one. 

For expenses related to ascendants over 65 years of age

40% of the annual amount. The maximum amount of the deduction may not exceed 660 euros per year in costs such as:

• Stays in residential care facilities or day centres 
•  Day care services, including meals, supervision, and activities 
•  Hiring a caregiver under an employment contract 

This deduction can be applied not only for the taxpayer themselves, but also for:

• Ascendants aged 65 or over  
•  Dependants (ascendants or descendants) with a disability of 33% or more 

•  The taxpayer, if they personally meet the age or disability requirements 

To qualify, several conditions must be met. The taxpayer’s total taxable income must not exceed €33,000 for individual filing or €52,800 for joint filing. In addition, all payments must be made through traceable methods such as bank transfer, card, or cheque—cash payments are not eligible.

For expenses arising from amyotrophic lateral sclerosis (ALS)

100% of the expenses incurred during the financial year arising from the amyotrophic lateral sclerosis of the taxpayer, of the descendants or of the ascendants of the taxpayer at his expense. A maximum limit of 3,500 euros is set.

Acquisition of shares and participations in newly created entities

If you have acquired shares or participations through the constitution or capital increase of an S.A, S.L, S.Lab, and/or Coop., you can deduct 30% of the investments, with an annual limit of €6,000. In no case can your participation exceed 40%.

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For the promotion of self-employment

1000€ of deduction if it is your first time as autonomo.

The requirements are to develop the activity in the Balearic Islands and maintain registered as autonomo for at least one year.

For filling positions declared difficult to fill in the Balearic Islands

40% of the full regional quota for taxpayers who occupy positions declared difficult to fill as long as the sum of the taxable bases doesn't exceed 52,800 euros in the individual declaration or 84,480 euros in the joint declaration. 

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.