Regional Deduction Rules in the Canary Islands - Renta 2024

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Welcome to the Canary Islands Tax Deductions Guide for the current fiscal year! This guide is designed to help residents of Canarias understand and capitalize on the various tax deductions available, ensuring they can fully benefit from regional tax policies. Whether you're a new parent, a renter, a homeowner making improvements, or an investor in renewable energies or local businesses, there's likely a deduction tailored to your circumstances.

What are the regional deductions in the Canary Islands?

The tax benefits in the Canary Islands, known as regional deduction,s 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, Canarias 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. 

Rental

If you have a rental contract in Castilla-La Mancha, you can deduct 15% of the amounts spent on rent, up to a limit of €450.

When the taxpayer has his habitual residence in a municipality of Castilla-La Mancha with a population of up to 2,500 inhabitants OR in a municipality of Castilla-La Mancha with a population of more than 2,500 inhabitants and up to 10,000 inhabitants, which is located at a distance greater than 30 kilometers from a municipality with a population of more than 50,000 inhabitants deduction will be 20% of the amounts with a maximum of 612 euros

Birth

If you had children in 2024, you can deduct €100 for one child, €500 for two children, or €900 for three or more children.

Nursery Expenses

You can deduct 30% of the expenses incurred for childcare for children under 3 years old, with an annual deduction limit of €500, and €250 in the year the child turns 3.

Large Family

If you are the head of a large family, you can deduct €200 for a general category or €400 for a special category. If any child has a disability greater than 65%, the deduction is €300 for a general category and €900 for a special category.

Single Parent Family

If you are the head of a single parent family, you can deduct €200.

Educational Expenses

You can deduct 100% of the expense on textbooks for your children and 15% of the expense on extracurricular activities, with a maximum limit of €200 based on the sum of your taxable bases.

Disability

If you have a disability greater than 65%, you are entitled to a deduction of €300.

Disability of Descendants or Ancestors

If you have a descendant or ancestor with a disability greater than 65%, you are entitled to a deduction of €300.

Elderly Over 75 Years

If you are 75 years or older, you are entitled to a deduction of €150.

Care for Elders Over 75 Years

If you live with an ancestor who is 75 years or older, you are entitled to a deduction of €150.

For donations with ecological purposes

10 percent of the amount of pure and simple monetary donations made during the tax period for ecological purposes to any of the following institutions:

Public entities dependent on the Autonomous Community of the Canary Islands, island councils or municipal corporations of the Canary Islands, whose purpose is the defence and conservation of the environment.

Non-profit entities regulated in articles 2 and 16 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage ( BOE of December 24), provided that their exclusive purpose is the defense of the environment and they are registered in the corresponding registries of the Autonomous Community of the Canary Islands.

Maximum amount of the deduction

10 percent of the full regional quota , of the declaration or, 150 euros , both in individual and joint taxation.

For donations for the rehabilitation or conservation of the historical heritage of the Canary Islands

20 percent of the amounts donated.

The amount of this deduction may not exceed

10% of the autonomous integral quota of the declaration or 150 euros , both in individual and joint taxation.

For donations and contributions for cultural, sports, research or teaching purposes

15% of the amount of donations and contributions made for certain recipients and purposes. The amount of this deduction may not exceed 5% of the autonomous community's full quota of the declaration.

For donations to non-profit organizations

Taxpayers will be entitled to additional deduction to the general deduction for donations and other contributions.

20% of deduction for bases of 150€

15% to the remaining base

17.5% if the donations are repeatedly for the same entity

The deduction base, may not exceed 10 percent of the taxpayer's taxable base

For amounts allocated by their owners to the restoration, rehabilitation or repair of real estate declared of cultural interest

10% of the amounts allocated by the owners of real estate located in the Canary Islands to the restoration, rehabilitation or repair.

The amount of this deduction may not exceed 10% of the autonomous community's full quot of the declaration.

Furthermore, the sum of the amount of this deduction together with the regional deductions “For investment in habitual residence”, “For energy rehabilitation works of the habitual residence” and “For works to adapt the habitual residence by people with disabilities” may not exceed 15% of the regional total quota.The base of the deduction will be reduced by the amount of the aid granted by the Public Administrations in the tax period in question, which covers all or part of the expenses that give rise to the deduction, provided that such aid is considered as exempt income for the purposes of Personal Income Tax .

For higher education expenses

For each descendant or adopted child who meets the requirements specified below:

1,800 euros, in general, when they pursue higher education studies outside the island where the taxpayer's habitual residence is located.

The above amount will be 1,920 euros if the taxpayer's taxable base is less than 36,300 euros.

900 euros, when pursuing higher education studies on the same island as the taxpayer's habitual residence, the descendants or adopted children move their domicile to a rented home, college or student residence, located in the municipality where the higher education teaching center is located or a neighboring municipality, but, in any case, other than the municipality of the taxpayer's habitual residence.

The amount of this deduction may not exceed 40 percent of the full regional quota

For non-higher education expenses

100 percent of the amounts paid in the tax period for acquisition of textbooks and teaching materials, regardless of their format, including digital; transport; uniform and school cafeterias.
Limits: A maximum limit of 133 euros , for the first descendant or adopted child.

66 additional euros for each of the remaining descendants or adopted children.

For moving the habitual residence to another island of the Archipelago to carry out an employed work activity or an economic activity

300 euros in the tax period

For cash donations to descendants or adopted children under 35 years of age for the acquisition or renovation of their primary residence: 

1% of the amount donated by taxpayers with habitual residence in the Canary Islands who during the year have made a cash donation to their descendants or adopted children under 35 years of age for the acquisition, construction or rehabilitation of the first habitual residence of the donee in the Canary Islands, with a maximum limit of 240 euros for each donee .

2% of the amount donated by taxpayers with habitual residence in the Canary Islands, when the donations referred to in the previous point are intended for descendants or adopted children under 35 years of age legally recognized as persons with a degree of disability equal to or greater than 33%, with a maximum limit of 480 euros for each recipient.

3% of the amount donated by taxpayers with habitual residence in the Canary Islands, when the donations referred to in the first point above are intended for descendants or adopted children under 35 years of age legally recognized as persons with a degree of disability equal to or greater than 65%, with a maximum limit of 720 euros for each recipient.

By birth or adoption of children

For each child born or adopted in the tax period, who lives with the taxpayer:

265 euros , when it is the first or second child .

530 euros , when it is the third .

796 euros , when it is the quarter .

928 euros , when it is the fifth or successive 

This amount increase in the event that the child born or adopted has a physical, mental, or sensory disability equal to or greater than 65% to

600 euros , when it concerns the first or second child who suffers from said disability.

1,100 euros , when it concerns the third or subsequent child who suffers from said disability, provided that the previous children with disabilities survive.

For taxpayers with disabilities and those over 65 years of age

160 euros for each taxpayer over 65 years of age; and 400 euros for each taxpayer with a degree of disability equal to or greater than 33%.

For fostering minors

330 euros for each minor in emergency, temporary or permanent foster care. When two or more taxpayers are entitled to this deduction and do not or cannot opt for joint taxation, the deduction will be prorated among them in equal parts.

For single-parent families

133 euros for the taxpayer who has descendants under his/her care, provided that he/she does not live with any person other than the aforementioned descendants, unless they are ascendants who generate the right to apply the minimum for ascendants.

For childcare expenses

18% of the amounts paid in the tax period for custody expenses, in daycare centers authorized for opening and operation, of offspring under 3 years of age , with a maximum of 530 euros per year for each offspring.

For large family

597 euros , when it concerns a large family of general category; and 796 euros , when it concerns a large family of special category.

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When one of the spouses or descendants has a degree of physical, mental or sensory disability equal to or greater than 65% , the amount of the deduction will be

1,326 euros , when it concerns a large family of general category; and 1,459 euros , when it concerns a large family of special category.

For investment in primary residence

5% if the general base is under 25,000€ and 3.5% if the general base is equal to or greater than 25,500 euros and less than 45,500 euros.

The maximum base of the deduction will be 6,000 euros per year per taxpayer.

For energy rehabilitation works of the habitual residence

12% of the amounts allocated to energy rehabilitation works in the taxpayer's habitual residence.The amount of this deduction may not exceed 10% of the autonomous community's full quota. Furthermore , the sum of the amount of this deduction together with the regional deductions "For amounts allocated by their owners to the restoration, rehabilitation or repair of real estate declared of Cultural Interest", "For investment in habitual housing" and "For works to adapt the habitual housing by people with disabilities" may not exceed 15% of the regional total quota.

For works to adapt the habitual residence for people with disabilities

14 percent of the amounts paid during the tax period for the adaptation of the home that constitutes or will constitute the habitual residence of:

Taxpayers who prove a degree of disability equal to or greater than 65%.  

The deduction percentage will be 18 per 100 if the taxpayer is, additionally, over 65 years of age .

Taxpayers when the disability equal to or greater than 65% is suffered by the spouse , the ascendants or descendants who live with them, provided that those , considered individually, do not have annual income, excluding exempt income, greater than 35,000 euros .

The deduction percentage will be 18 percent if the spouse, ascendants or descendants were additionally over 65 years of age.

The maximum base of the deduction will be 15,000 euros per taxpayer

For rent of habitual residence

24% of the amounts paid in the tax period for the rent of the habitual residence.

The maximum amount of the deduction will be 740 euros per year per taxpayer. The previous limit will be 760 euros per year if the taxpayer is under 40 years of age or equal to or greater than 75 years of age and meets certain requirements.

For leasing of habitual residence linked to certain transactions of payment in kind

25% of the amounts paid during the corresponding fiscal year, for the rental of the habitual residence. The maximum amount of the deduction will be 1,200 euros per year , both for individual and joint taxation.

For expenses arising from the adaptation of a property for rental as a habitual residence

10% of the amounts paid in the tax period by taxpayers, corresponding to any of the following concepts: Repair and maintenance expenses, as well as any other expenses necessary to ensure a property is in a condition to be rented; Expenses for formalizing leasing contracts; Insurance premiums for damages and non-payments and Expenses required to obtain energy efficiency certificates.

The maximum deduction limit is 150 euros per rented property, for both individual and joint taxation.

For expenses on credit insurance premiums to cover non-payment of rent on housing leases (landlord deduction)

75% of the expenses paid by the taxpayer during the year in the form of credit insurance premiums that fully or partially cover the non-payment of rents to which the taxpayer is entitled by reason of the leasing of real estate, located in the Canary Islands, to a third party for housing purposes.

The maximum amount of this deduction will be 150 euros per year, both for individual and joint taxation.

For the placing of homes on the rental market for habitual residences

1,000 euros for each of the real estate properties located in the Canary Islands intended for the residential leases provided for in article 2 of Law 29/1994, of November 24, on urban leases.

Applicable limit

Each taxpayer will apply this deduction to maximum of five properties intended for residential rental, excluding and storage rooms. For the sole purpose of calculating this number of properties, each will count as one unit, regardless of the percentage of ownership.

For unemployed taxpayers

120 euros for taxpayers receiving unemployment benefits

For illness expenses (general)

12% of the professional expenses and fees paid during the tax period for the provision of services by those who have the status of medical or health professionals, except pharmacists for reasons of prevention, diagnosis and treatment of diseases, dental health, pregnancy and childbirth, accidents and disability, both their own and those of people included in the family minimum.

12% of expenses on the acquisition of devices and accessories , including prescription glasses and contact lenses, which due to their objective characteristics can only be used to compensate for the physical deficiencies of people.

The deduction will have an annual limit of 500 euros for individual taxation and 700 euros for joint taxation, which will be increased by 100 euros for individual taxation when the taxpayer is a person over 65 years of age or with a disability and can prove a degree of disability equal to or greater than 65 percent.

When the sum of the general tax base and the savings tax base is greater than 45,500 euros in individual taxation or than 60,500 euros in joint taxation, the deduction limit will be 150 euros per taxpayer

For dependent family members with disabilities

600 euros for each ascendant or descendant with a degree of disability equal to or greater than 65% that generates the right to apply the minimum for disability.

Or 20% of the amounts paid in the tax period for the Social Security contributions of a worker included in the Special System of the General Regime of Social Security for Domestic Employees, when it is proven that people with disabilities need help from third parties and generate the right to the application of the minimum for assistance expenses, with the limit of 500 euros per year per taxpayer.

For contributions paid to Social Security for the hiring of domestic employees

20% of the amounts paid by taxpayers in the tax period for Social Security contributions of a worker included in the Special System for Domestic Employees of the General Social Security Regime, corresponding to the annual contribution of an employee of the family home, which constitutes the habitual residence of the employer.

The maximum amount of the deduction may not exceed 500 euros per year , regardless of the number of people employed.

General Deductions

Check out the general deductions rules for Spain here → 

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