Personal Income Tax Return 2021: Deductions applicable to main residence

Personal Income Tax Return 2021: Deductions applicable to main residence. Image: Nicolás Emery

There are several deductions available on the income tax return of your main residence. Nicolás Emery, a lawyer and economist at Moya & Emery, tells us what the conditions are.

If you pay rent in Mallorca, you may have heard that there is a possible deduction on the income tax return for renting your main residence. However, not everyone is eligible for this deduction, as there is a series of requirements to consider.

Firstly, the taxpayer must meet one of the following requirements: be under 36 years of age; have a physical disability equal to or greater than 65 per cent or a mental disability equal to or greater than 33 per cent; or have a large family.

If you fall into one of these groups, you will have to meet the requirements for your annual income, which must not exceed €34,000 for joint income or €20,000 for individual income. If you meet these requirements, you will be eligible for a deduction of up to a maximum of €400 per year.

If you don’t meet any of these requirements, don’t worry. There are also deductions available on housing at the national level. From October 2021, there are an additional three cases in which deductions can be made on your tax return for renovation work on your home.

In this case, 20 per cent is applied to work carried out between October 2021 and December 31, 2022, for the improvement of energy consumption from air conditioning and can be applied both to homes you own and those you have rented or are going to rent.

The next deduction is 40 per cent on boilers that have been installed from October 2021 to December 31, 2022, for the replacement of diesel boilers with natural gas boilers. This deduction may only be applicable to the main residence owned.

Finally, the deduction of 60 per cent on the amount paid for work for the improvement of the energy efficiency of the building as a whole carried out between October 2021 and December 31, 2023.


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Tamsin Brown

Originally from London, Tamsin is based in Malaga and is a local reporter for the Euro Weekly News covering Spanish and international news. Got a news story you want to share? Then get in touch at [email protected]

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