Regional Deduction Rules in Baleares

✓ verified by Elena Garro Especialista en Contabilidad e Impuestos

Welcome to your guide on Baleares tax deductions for the year 2023! 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. 

School Supplies

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 goes up to 350€ if the taxpayer is under 30, Have been recognized as having a degree of disability equal to or greater than 33%, Have the right to the minimum for disability of ascendants or descendants, are the father, mother or parents who live with the child or children subject to parental authority and who form a large family or are the father or mother who live with the child or children subject to parental authority and who are part of a single-parent family with two or more sons or daughters

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.

Investments to Improve the Sustainability of Main Residence

You can deduct 50% of the investments that enhance the quality and sustainability of the dwelling.

Rent

You can deduct 15% of the amounts destined for rent if you are under 36 years old or over 65, with a maximum amount of €530.
If the tax payer is under 30, Have been recognized as having a degree of disability equal to or greater than 33%, Have the right to the minimum for disability of ascendants or descendants, are the father, mother or parents who live with the child or children subject to parental authority and who form a large family or are the father or mother who live with the child or children subject to parental authority and who are part of a single-parent family with two or more sons or daughters, the deduction is 20% of the amount with a maximum of 650€

Compensation for Loan Increases

You can deduct the difference in interest paid during 2024 and 2021, up to a maximum of €400.

Extracurricular Foreign Language Expenses

You can deduct up to €110 per child for expenses incurred in foreign language courses.

Landlord Rental

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.

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.

Donations to Entities Dedicated to R&D and Innovation

You can deduct 25% of the donations made, with the limit being 15% of the total regional tax quota.

Donations, Usage Assignments, or Loan for Use Contracts and Business Collaboration Agreements Related to Cultural and Sports Patronage, Scientific and Technological Development, and Cultural Consumption

You can deduct 15% of the donations, with an annual limit of €660.

Donations to Entities Promoting the Catalan Language

You can deduct 15% of the donations.

Donations to Third Sector Entities

You can deduct 25% of the donations, with a maximum deduction base of €165.

Taxpayers with Disabilities

You can deduct according to the degree of disability up to €165. This deduction applies to family unit members.

Expenses for Descendants or Fostered Children Under 6 Years Old

You can deduct 40% of the expenses paid in centers for the custody of minors, with an annual limit of €660.

Birth or Adoption

You can deduct €800 if you have a child during 2023, €1,000 for the second, €1,200 for the third, and €1,400 for the fourth and subsequent children.

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%.

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. 

For donations, assignments of use or bailment contracts and collaboration agreements, related to sports patronage

15% of the amounts. The limit of the applicable deduction is 660 euros per year 

For expenses related to ascendants over 65 years of age

40% of the annual amount. The maximum amount of the deduction may not exceed 3,600 euros per year.

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For certain expenses related to persons over 65 years of age or persons with disabilities

40% of the annual amount. The maximum amount of the deduction may not exceed 660 euros per year.

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 of 3,500 euros is set.

For the promotion of self-employment

1000€ of deduction 

For filling positions declared difficult to fill in the Balearic Islands

30% of the full regional quota for taxpayers who occupy positions declared difficult to fill (NEW 

General Deductions

Check out the general deductions rules for Spain here → 

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.