Regional Deduction Rules in Galicia

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to the Galicia Regional Deductions guide for the current fiscal year.  Galicia 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 Galicia. 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.

Birth or adoption

The deduction for having or adopting children in 2025 varies depending on the sum of your taxable bases and whether it's for the first or subsequent children:

• Sum of bases minor or equal to €22,000:
  • €360 for the first child
  • €1,200 for the second child
  • €2,400 for the third and following child 
• Sum of bases higher than €22,000:
  • €300 for each child
  • €360 in case of multiple birhts

Families with two children

If you have two children living with you as of December 31, you can deduct €250. If any child has a disability of 65% or more, the deduction increases to €500.

Rental

If you are under 35 years old and have a rental contract for your main residence, you can deduct 10% of the amounts paid, up to a limit of €300 per year or 20% if you have two or more minor children with a limit of €600.

These percentages of deduction will be doubled in case you have a disability equal to or over 33%.

The sum of the taxable bases for applying this deduction cannot be higher than €22,000 in both individual and joint taxation.

New technologies in households

If you've contracted high-speed internet lines, you can deduct 30% of the amounts paid, up to a limit of €100, for individual tax returns and for joint tax returns. This deduction is only applicable in the year the contract starts and does not apply if you switch providers.

Large family

If you're the head of a large family, you can deduct €250 for a general family or €400 for a special category, with an increment of €250 for each child starting from the third.

If any child has a disability of more than 65%, the deduction is €500 for general and €800 for special, with an increment of €500 starting from the third.

Foster care of minors

You can deduct €300 for each minor. If the child is adopted during the year, the deduction cannot be applied and in cases of marriage or civil partnership, the deduction will be prorated equally.

Care for minors

If you have dependents under 3 years old, you can deduct 30% of the amounts paid to a household employee or to nursery schools, up to a maximum of €400. The limit is €600 if you have two or more dependents under the age of 3.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €22,000 for individual tax returns, and €31,000 for joint tax returns.

Taxpayers with disabilities aged 65 or older needing assistance

You can deduct 10% of the amounts paid to third parties, up to a maximum of €600 annually, provided your taxable bases are below €22,000 for individual taxation and €31,000 for joint taxation.

You cannot be a user of public or subsidized residences or a beneficiary of the Xunta's assistance check.

Acquisition of shares and participations in newly created entities

If you've 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, up to a maximum of €6,000 annually. Your participation cannot exceed 40% directly or indirectly, and less than 1%.

The company must meet certain requirements; for example, it must carry out an economic activity for the three years following its incorporation or capital increase.

If the company is accredited as a small and micro innovation company, promotes a technology project or is participated by a university or another research organization, the deduction can be 45% of the investments, up to a maximum of €9,000.

Acquisition of shares and participations in newly created entities and their financing

If you've 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, up to a maximum of € 20,000, and 30% of the amounts lent during the year may be deducted, as well as the amounts personally guaranteed by the taxpayer, provided that the loan is granted or the guarantee is established in the year in which the company is incorporated or its capital is increased. Your participation cannot exceed 40% directly or indirectly, and less than 1%.

The company must meet certain requirements; for example, it must carry out an economic activity for the three years following its incorporation or capital increase.

If the company is accredited as a small and micro innovation company, promotes a technology project or is participated by an university or another research organization, the deduction can be 45% of the investments, up to a maximum of €35,000.

Acquisition of shares and participations in entities listed on the stock exchange

If you've acquired shares or participations through a capital increase of entities listed on the stock exchange, you can deduct 15% of the investments, up to a maximum of €4,000 annually. Your participation cannot exceed 10% directly or indirectly, and the acquired shares must be held within the taxpayer's assets for a period of at least three years.

The company receiving the investment must have its registered office and tax residence in Galicia, and the acquisition must be formalized in a public deed.

Donations to entities promoting R&D and Innovation

You can deduct 25% of the amounts donated to research centers affiliated with Galician universities and non-profit entities, with a limit of 10% of the full regional tax quota.

Investment in heating and/or domestic hot water systems using renewable energy

You can deduct 5% of the amounts paid (not in cash), up to a limit of €280.

The installation must be properly registered. The installation must be duly registered by the installer, who must be authorized for this purpose, in the Industrial Virtual Office (OVI).

Rehabilitation of real estate in historical centers

You can deduct 15% of the amounts invested in the rehabilitation of Real Estate in Historical Centers, with a maximum deduction limit of €9,000.

Investment in agricultural activities

You can deduct 20% of the amounts invested as a result of the constitution or capital increase of companies, or of a leasing, with a maximum deduction limit of €20,000.

The investment must be held within the taxpayer's assets for a period of at least five years, and it must be formalized in a public deed.

Improvement works for energy efficiency of residences

You can deduct 15% of the amounts invested, with a maximum deduction base of €9,000. You can also deduct 100% of the fees for obtaining the energy efficiency certificate, up to a limit of €150.

The registration number of the energy efficiency certificate within the Registry of Energy Efficiency Certificates for Buildings of the Autonomous Community of Galicia, as provided by the Registry itself on the property's energy efficiency label, must be included in the taxpayer's tax return.

Acquisition and rehabilitation of housing in model village projects

You can deduct 15% of the amounts invested in the acquisition of housing. The acquisition or rehabilitation must have been made after January 1, 2021.

The deduction base limit is €9,000 annually if the housing is to be your main residence, and €4,500 annually if it is not your main residence but used as a second or occasional residence.

For subsidies and/or aid received as a consequence of damages caused by forest fires that triggered the activation of PEIFOGA in Level 2 Situation, occurring in Galicia in 2025

The amount of this deduction shall be the result of applying the average tax rates to the amount of the subsidy or aid included in the net taxable base.

For the aid and subsidies received by top-level sportsmen and sportswomen in Galicia

The amount of said deduction will be the result of applying the average tax rates to the part of the general taxable base that corresponds to said subsidy or aid. 

For investment in the acquisition of shares or equity interests in entities that carry out certain projects declared to be of special public, social or economic interest

20% of the amounts invested during the financial year in the acquisition of shares or equity interests, as a result of agreements for incorporation of companies or capital increases , of those entities whose exclusive corporate purpose is the execution of projects that are declared to be of special public, social or economic interest, up to the maximum maximum base of €10,000 is established for each entity regardless of whether the investment is made in one or several tax periods. 

Expenses derived from the adaptation of a vacant property for residential lease

You can deduct 15% of the amounts paid for repair and maintenance works, as well as any other expense necessary for the property to be in suitable condition for residential lease within the tax period in which the lease is established.  The expenses must be justified with invoices, and kept by at least 4 years.

The maximum deduction base is up to €9,000 per property, both for individual and joint tax returns. The maximum annual deduction base is €3,000 per property (also for both individual and joint returns). Any amounts paid that can’t be deducted because they exceed this annual limit can be carried forward and deducted in the following two years, up to €3,000 per year.

In case that the deduction is applied for two or more properties, the maximum annual deduction base is €6,000, and any amounts not deducted can be carried forward and deducted in the following four years.

The property and the rental contract must meet some requirements. For example, the real estate properties must have been vacant for at least one year prior to the start of the works, and these works must be completed within a maximum period of 2 years.

Following the completion of the works, the property must be leased within a maximum period of 6 months, and the lease agreement must have an effective duration of at least 3 years.

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For the lease of vacant housing

500 euros for each of the real estate properties intended for residential lease, provided that the owner holds a maximum of three dwellings.

The deduction is applicable in the first tax period in which the housing is placed on the rental market. The real estate properties must have been vacant for at least one year prior to the formalization of the lease agreement, and the lease agreement must have an effective duration of at least three years.

The tenant of the dwelling may not be the spouse or a relative of the taxpayer, whether by consanguinity or affinity, up to the third degree inclusive. The monthly rental price of the dwelling, including its annexes, may not exceed 700 euros.

For grants and subsidies received by individuals diagnosed with ALS or its phenotypes

The amount of this deduction shall be the result of applying the average tax rates to the amount of the public subsidy or grant included in the net taxable base.

School supplies

15% of the amounts paid for the purchase of textbooks or school supplies for descendants, which have been published for Primary Education, Compulsory Secondary Education (ESO), and Special Education, up to a maximum annual limit of €105 per descendant.

The descendants generating the right to apply the deduction must be enrolled in educational centers supported by public funds, and the family unit's per capita income must be equal to or less than 30,000 euros.

The accreditation of expenses for the purchase of textbooks and school supplies shall be carried out by means of a detailed invoice for the goods purchased and proof of payment made (non-cash).

For aid received by individuals affected by thalidomide in Spain during the period 1950-1985

The amount of this deduction shall be the result of applying the average tax rates to the amount of the public aid included in the net taxable base.

The deduction shall be applicable to public aid received and included by the taxpayer in the general taxable bases for the 2023 tax year and subsequent years.

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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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