Regional Deduction Rules in the Canary Islands

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to the Canary Islands Tax Deductions Guide for 2026! 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.

Donations 

There are four different deductions related to donations:

• Donations with ecological purposes: 10% of the amount donated (up to €150) 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 whose exclusive purpose is the defense of the environment and they are registered in the corresponding registries of the Autonomous Community of the Canary Islands. 
• Donations for the rehabilitation or conservation of the historical heritage of the Canary Islands: 20% of the amount donated (with a limit of €150) to the restoration or conservation of properties located in the Canary Islands to the following entities:
  • Public Administrations, as well as the entities and institutions dependent on them.
  • The Catholic Church and the churches, confessions or religious communities that have cooperation agreements with the Spanish State.
  • Foundations or associations that include among their specific purposes the repair, conservation or restoration of historical heritage.
• Donations and contributions for cultural, sports, research or teaching purposes: 15% of the amount of donations and contributions related to cultural, sport, research or teaching purposes.
•  Donations to non-profit organizations: Taxpayers will be entitled to additional deduction to the general deduction for donations and other contributions, but this one is incompatible with the application of the two first deductions mentioned:
  •  20% of deduction for bases of 150€ 
  •  15% to the remaining base 
  •  17.5% if the donations are repeatedly for the same entity 
    

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 quota 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.

Taxpayers with a disability or over 65 years old 

If you have a disability equal to or greater than 33%, you are entitled to a deduction of €400.

If you are over 65 years old or older, you are entitled to a deduction of €160. 

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €46,455 for individual tax returns, and €61,770 for joint tax returns.

Dependent family member with disabilities

If you have a descendant or ancestor with a disability greater than 65%, you are entitled to a deduction of €600.

You can also deduct 20% of the amounts paid to Social Security for an employee with a limit of €500.

The sum of the taxable bases for applying this deduction is €46,455 in individual taxation, and €61,770 joint taxation. 

Higher education expenses

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

• 1,800 euros when the education is taking place outside the island where the habitual residence is located.
  The above amount will be 1,920 euros if the taxpayer's taxable base is less than 37,062 euros. 
  
  A specific requirement for applying this deduction is that the higher education studies must cover a full academic year or a minimum of 30 credits and that on the taxpayer's island of residence, there must be no public educational offer (other than virtual or distance learning) for the specific studies that require the relocation to another place to be completed.
  
• 900 euros when the education is on the same Island as the habitual residence but in a different municipality because the descendant has moved their domicile to the one where the education teaching center is located.
  
  This deduction is conditional upon the taxpayer declaring the landlord's tax identification number, the cadastral reference of the leased property, and the annual rent amount, or, where applicable, the tax identification number of the student hall of residence or dormitory.

The common requirements for applying this deduction are:

• The amount may not exceed 40 percent of the full regional quota.
• The descendant or adopted child must be single, economically dependent on the taxpayers, under 25 years of age and studying higher education and do not obtain income exceeding €8,000.
• The sum of the bases must not exceed €46,455 for individual tax returns, and €61,770 for joint tax returns.

For non-higher education expenses

You can get 100% of the amounts paid in the tax period for the 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 and 66 additional euros for each of the remaining descendants or adopted children.

Other requirements are:

• The descendant or adopted child must be enrolled in the first and second cycles of early childhood education, basic education, and post-compulsory secondary education. 
• The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €46,455 for individual tax returns, and €61,770 for joint tax returns.
  
• There must be an invoice for each expense.
  

Relocation of habitual residence to another island in the archipelago for employment or self-employment purposes

300 euros deduction in the tax period and the following one. 

The deductible amount cannot exceed the net income. To consolidate the righ to the deduction, the taxpayer must remain on the island of destination during the year in which the relocation occurs and for the following three years. 

If the move was done in 2024, the sum of the taxpayer’s general taxable base and savings taxable base must not exceed €46,455 for individual tax returns, and €61,770 for joint tax returns.

If the move was done in 2025, the sum of the taxpayer’s general taxable base and savings taxable base must not exceed €45,500 for individual tax returns, and €60,500 for joint tax returns.

Birth or adoption 

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. 

If the child has a 65% disability or over, you'll also deduct €600 for first and second children, or €1,100 for third or more children.

The sum of the bases must not exceed €46,455 for individual reports, and €61,770 for joint reports.

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, 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.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €46,455 for individual tax returns, and €61,770 for joint tax returns.

For childcare expenses

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

The expenses must be justified with invoices, and kept by at least 4 years, and the sum of the bases can not exceed €46,455 in the individual taxation and €61,770 in the joint taxation.

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.

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 for large families of general category and 1,459 euros for large families of special category.

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For investment in the main residence

You can apply a 5% deduction if the general base is under 26,035€ and 3.5% if the general base is between 26,035 and 46,455€.

In cases of people under 40 years old, the percentages will be 5.5% and 4%, respectively.

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

For energy rehabilitation works of the habitual residence

You can deduct 12% (with a limit of €7,000) of the amounts allocated to energy rehabilitation works in your habitual residence.
The amount of this deduction may not exceed 10% of the autonomous community's full quota and 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

You can deduct 14% of the amounts paid during the tax period for works carried out to adapt a property that is or will become your primary residence. This deduction applies to:

• Taxpayers with a recognised disability equal to or greater than 65%
• Taxpayers whose spouse, ascendants, or descendants living with them have a disability of 65% or higher, provided that these individuals do not exceed €35,735 in annual income (excluding exempt income)

The deduction percentage will be 18 per 100 if the taxpayer or other member from the family unit is, additionally, over 65 years of age .

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

Rent (for tenants)

You can get a 24% deduction of the amounts paid in the tax period for the rent of the habitual residence up to a maximum amount of 740 euros per year per taxpayer which can increase to 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 applying this deduction, the sum of the taxable bases cannot be higher than €46,455 in the individual taxation and €61,770 in the joint taxation.

Rent (for landlords)

There are four different deductions for landlords:

• 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 made for adapting 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.
    Expenses must be properly justified with invoices in order to be taken into account, and kept at least 4 years.
    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 on rent:
  • 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. The monthly rent must not exceed 800 euros.
• For placing of homes on the rental market for habitual residence:
  • 1,000 euros for each of the real estate properties located in the Canary Islands intended for residential leases.
    Each taxpayer will apply this deduction to a 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 and the rental contract must have a duration of at least three years.

For unemployed taxpayers

120 euros deduction for taxpayers receiving unemployment benefits for at least 6 months during the tax period.
The sum of the general tax base must be over €15,876 and less than €22,000, and the savings tax base cannot exceed €1,600, both in individual taxation and in joint taxation.

For illness expenses 

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 46,455 euros in individual taxation or than 61,770 euros in joint taxation, the deduction limit will be 150 euros per taxpayer

For dependent family members with disabilities

You can apply two different deductions:

• 600 euros deduction 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. 
• 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.

The deduction can be applied when the sum of the bases doesn't exceed 46,455 euros in the individual taxation and 61,770 euros in the joint taxation.

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

If you have children or descendants depending on you, are 75 years old or over, or have a disability and are 65years old or over, you can deduct a 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.

Acquisition of shares and participations in newly created entities

You can deduct:

• 20% of the amounts invested in the formation or capital increase of S.A., and/or S.L., up to €4,000 annually,
• 30% of the amounts invested in the formation of capital increase of companies created by or with the participation of universities or research centers; and/or employee-owned public limited companies, employee-owned limited liability companies, and cooperatives, up to €6,000 annually.
  

Your participation cannot exceed 40%, and you must not perform executive or management functions within the investee company. The said participation must be held for a minimum of three years, and the entity from which the shares or social interests are acquired must have its registered office and tax residence in the Autonomous Community of the Canary Islands, and must carry out an economic activity.

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. 

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