Regional Deduction Rules in Extremadura

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to the Extremadura Regional Deductions guide for 2026. Extremadura offers a range of tax advantages that can enhance your income tax refund. From rental deductions, and family-related benefits to specific incentives for young entrepreneurs and investments in newly created entities, you'll find a variety of tax reliefs tailored to support different aspects of life and economic activity in Extremadura. By understanding and utilizing these deductions, you can significantly reduce your tax liabilities and optimize your financial planning. Dive into the specifics and learn how you can benefit today.

What are the regional deductions in Extremadura?

The tax benefits in Extremadura 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, Extremadura 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. 

Dependent work

You can get a deduction of €75 if your work income doesn't exceed 12,000 euros and have not received any other income higher than 300 euros 

Multiple births

If you have had multiple children in 2025, you will have a deduction of €300 for each child born.

There are two limits for applying this deduction:

• In general: the sum of the taxable bases cannot exceed 19,000 euros in the individual taxation and 24,000 euros in the joint one.
• If you reside in a municipality with less than 3,000 residents: the sum of the bases cannot exceed 28,000 euros in the individual report and 45,000 in the joint report.
  

Foster care of minors

You can deduct:

• €250 for each minor in foster care who has lived with you for 183 or more days in 2025
• €125 for each minor in foster care who has lived with you for less than 183 days in 2025

In cases of marriage or civil partnership, the deduction will be prorated equally.

Relatives with disabilities

If you live with an ascenstor or descendant with a disability equal or higher than 65%, you will receive a deduction of €150, which increases to €220 if the right to dependency aid has been recognized but not received by December 31.

You will have to prove the cohabitation to apply this deduction.

Childcare expenses up to 14 years old

You can deduct 10% with a limit of 400 euros if for working-related reasons, the child is looked after by a domestic worker or a centre authorised by the regional government.

The requirements for its application are:

• Both parents are working (as employees or autonomos)
• If the children are in an authorised centre, have the corresponding invoice
• The sum of the taxable bases cannot be higher than 28,000 euros in the individual taxation and 45,000 euros in the joint taxation
• This last requirement will not be reviewed if you live in a municipality with less than 3,000 residents and you are part of a large family

Widowed taxpayers

If you have become widowed, you can deduct €100 in the year it occurs.

If you also have one or more descendants, the amount will be €200, subject to the base limits that vary depending on the population of the municipality where you reside. 

Acquisition or rehabilitation of habitual residence 

Two different deductions with a limitation of 9,040 euros:

• If you are under 36 years old: 
  • 3% of the amounts paid during 2025 for the purchase or renovation of a new home which is your main residence
  • 5% of the amounts paid during 2025 for the same concept but the house is in a municipality with less than 3,000 residents

• If you are a victim of terrorism:
  • Same deductible percentages but without taking into consideration the age.

The requirements for applying it are:

• You already have your habitual residence in Extremadura
• It will be your first owned home
• It must be a new build home
• The sum of the bases cannot exceed:
  • In general: 19,000 euros in individual declarations and 24,000 euros in joint declarations
  • Municipalities with less than 3,000 residents: 28,000 euros in individual reports and 45,000 euros in joint reports

Rental

If you are under 36 years old, part of a large family or have a disability greater than 65%, you can deduct 30% with a limit of €1,000 for the rental payments or up to €1,500 if the rented home is in a municipality with less than 3,000 residents.

The limit for applying it is that the sum of the taxable bases doesn't exceed 28,000 euros in the individual taxation or 45,000 euros in the joint taxation.

You must not be entitled, during the same tax year, to any deduction for investment in a principal residence and neither the taxpayer nor any member of their household must hold full ownership or a right in rem to use or enjoy another property situated within 75 kilometres of the rented property.

Landlords 

Two different deductions:

• If you own an empty home and it has not been used and you have rented it in 2025 you can deduct 100% of the net income received for this rental if the rental contract has a duration of at least three years.
  You cannot own more than three houses, regardless of the percentage of ownership.
• For investments in the rehabilitation of housing in rural areas to be used for rental purposes:
  • You can deduct 15% of the amounts invested during the tax year in the renovation of homes in rural areas for rental purposes with a limit of 9,040 euros.

School supplies

The deduction for the purchase of school supplies for descendants is €15.

The limit in the sum of the taxable bases for applying it is €19,000 in the individual taxation and €24,000 in the joint taxation.

If you live in a municipality with less than 3,000 residents, the limits go from €28,000 in the individual and €45,000 in the joint one.

Acquisition of shares and participations

You can deduct 20% of the amount invested in any commercial company such as S.R.L., S.A., S.A.L., S.R.L.L., and S.C., with a maximum of €4,000 per year.

Acquisition or rehabilitation of habitual residence in rural areas

If you bought a house in a rural area (less than 3,000 residents) from January 1st 2022 onwards, you can get a 10% deduction with the limit of 9,040 euros.

Residence in municipalities with less than 3,000 inhabitants

You will have a deduction corresponding to 15% of the full regional tax quota if the sum of your taxable bases is not higher than 28,000 euros in the individual taxation and 45,000 euros in the joint taxation.

Interests in external financing for investment in habitual housing for young people

If you are less than 36 years old, have bought your first house and the sum of your taxable base is not higher than 28,000 euros in the individual taxation or 45,000 in the joint taxation, you can deduct 25% of the interests paid from your mortgage with a limit of 1,000 euros per year. 

Discover how Xolo can simplify your tax planning and maximize your deductions in Extremadura. Explore Xolo today and take the first step towards smarter financial management!

Donations

You can deduct 20% of the donations made to:

• Entities with a fiscal address in Extremadura which make cultural activities 
• Athletes with fiscal address in Extremadura that they dedicate themselves voluntarily and habitually to sports practice
  
  

This deduction has a limit of €500 per taxpayer.

Taxpayers who move their habitual residence to Extremadura

If you've moved to Extremadura during 2025 and mantain for at least three years your residence there, you can get a 50% deduction of the full regional quota.

This deduction gets up to 75% if you are under 36 years old.

Amyotrophic Lateral Sclerosis 

If you have received any aid or subsidy granted by the Autonomous Community of Extremadura for ALS disease, the amount of this deduction will be the result of applying the average tax rates to the amount of the subsidy or aid included in the taxable base.

If you, your spouse or common-law partner, descendant or ascendant who lives with you, are diagnosed with ALS, you can deduct 2,000 euros per each taxpayer.

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.