Regional Deduction Rules in Castilla y León

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to the Castilla y León Community Tax Deductions Guide for 2026! This guide is designed to help residents of Castilla y León 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.

Birth or adoption

If you had or adopted a child in 2025, you can deduct:

• In general:
  •  €1,010 if it's your first child
  •  €1,475 for the second child 
  •  2,351 for the third child or subsequent children 
• If you live in a municipality with less than 5,000 residents:
  • €1,420 for the first child
  • €2,070 for the second one
  • €3,300 for the third or subsequent children

The amounts will be duplicated where the child, whether biological or adopted, has a recognised degree of disability of 33% or more.

In case you had chosen to apply for similar public grants and benefits provided by the Regional Government of Castile and León on the grounds of birth or adoption, and these had been granted you cannot apply this deduction.

Rental for people under 36 years old

If you are under 36 years old and have a rental agreement for your main residence, you can deduct:

• 20% of the amounts paid, up to a maximum of €459 per year. 

• 25% with a maximum of €612 if you live in a municipality with less than 10,000 residents or 3,000 if it is less than 30 kilometres from the provincial capital.

The limit in the sum of the taxable bases for applying this deduction is 18,900 euros in the individual taxation and 31,500 euros in the joint taxation.

Large family

If you are the head of a large family, you can deduct €600, or €1,500 if you have four children, and €2,500 if you have five.

If any member of the unit family has a disability equal to or higher than 65%, the deduction will be applied in €600 more.

Multiple births or adoptions

If you had multiple and simultaneous births or adoptions, you are entitled to 50% of the birth deduction for two children. For three or more children, the amount increases to 100% of the birth deduction. 

If both parents or adoptants are eligible to apply this deduction, it will be prorated equally.

Child care

If you have dependents under 4 years old, you can deduct 30% of the amounts paid to a household employee, up to a maximum of €322. If you incurred childcare or schooling expenses, you can deduct 100% up to €1,320.

The requirements for applying this deduction are:

• Both parents are employees or autonomos
• If there is a household employee, this person is registered in the Special System in Social Security
• The sum of the taxable bases cannot exceed 18,900 euros in the individual report and 31,500 in the joint report.

Adoption expenses

If you incurred expenses related to adoption, you are entitled to €784 per adoption. If the adoption is international, the amount is €3,625.

Social Security contributions for household employees

You can deduct 15% of the amounts paid for social security contributions, up to €300, provided you have a dependent under 4 years old.

Taxpayers with disabilities:

You can get a deduction of:

• €300 if you or other member of your family unit have a disability under 33% and are under 65 years old.
• €656 if you or any member of your family unti have adissability higher than 65% and are over 65 years old.
• €300 if you or any member of your family unit is under 65 years old with a disability equal or higher than 65%.

The limit in the sum of the taxable bases for applying it is 18,900 euros in the individual taxation and 31,500 in the joint taxation.

Acquisition or rehabilitation of housing in rural areas

If you are under 36 years old and already have your habitual residence in Castilla y León, you can deduct 15% of the amounts spent on acquiring or rehabilitating your first main residence.

The requirements are:

• Be under 36 years old.
• It has to be your first main residence.
• The house must be located in a municipality with less than 10,000 residents or 3,000 if it is less than 30 kilometres from the provincial capital. 
• The house value cannot be higher than 150,000 euros.
• The purchase or renovation of the property must take place on or after 1 January 2023.
• It is a newly built property or a renovation.
• The sum of the taxable bases cannot be higher than 18,900 euros in the individual taxation and 31,500 in the joint taxation.

Environmental and disability adaptation investments in the main residence

If you have carried out rehabilitation works, you can deduct 15% of the costs, up to a maximum of €20,000, from the following investments made: installation of solar panels, improvements to heating systems, improvements to water supply facilities and the installation of water-saving devices and necessary works and installations to ensure accessibility and sensory communication.

Investment in the rehabilitation of rental housing in rural areas

You can deduct 15% of the amounts invested in the rehabilitation of housing priced below €150,000 and with a monthly rent not exceeding €300.

Also, the property must be rented during at least the five following years to a person who is not a member of your family.

Promotion of entrepreneurship

If you have acquired shares during the formation of companies or capital increases, you can deduct 20% of the amounts invested, with a maximum deduction of €10,000.

Investments and donations to foundations for the recovery of historical, cultural, and natural heritage

You can deduct 15% of the amounts invested as long as your taxable bases are below €18,900 for individual taxation and €31,500 for joint taxation. The deduction base limit cannot exceed 10% of the taxable base.

Donations to R&D and innovation

You can deduct 15% of the amounts donated to public universities in Castilla y León and to foundations and other entities whose main activity is business R&D and innovation. The deduction base limit is 10% of the taxable base.

Promotion of sustainable mobility

You can deduct 15% of the amounts spent on purchasing a new pure electric vehicle, an electric vehicle with extended range, or a plug-in hybrid with more than 40km of autonomy, provided the price does not exceed €40,000. The maximum amount of this deduction is €4,000 per electric vehicle.

The other requirements are:

• The vehicle is not affected to your economic activity
• The deduction will only be applicable in the year the vehicle has been registered 
• You have to keep the vehicle for at least four years
• You will have to justify this deduction with the purchase invoice

Acquisition of new construction property

If you have purchased a newly constructed home which will be your habitual residence, you can deduct 7.5% of the amounts invested, with an annual deduction base limit of €9,040.

The property must be your first owned house and it has to be located in Castilla y León.

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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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