30 Sep, 2025 @ 18:15
1 min read

EXPLAINER: How to claim the new €1,200 tax deduction for renters in Andalucia (and who’s eligible)

Costa Blanca has two of Spain's poorest big city areas based on income tax payments
Imagen de Bruno /Germany en Pixabay

RENTERS in Andalucia can now claim back a cool €1,200 on their annual tax bill – here’s how to do it.

Who qualifies for €1,200?

You can claim the maximum €1,200 annual deduction if you’re renting your main residence (vivienda habitual) in Andalucia and fall into one of these groups:

  • Under 35 years old
  • Over 65 years old
  • Victims of gender violence
  • Victims of terrorism

The catch? Your annual income must not exceed €25,000 in individual taxation. That threshold has increased from the previous €19,000 limit, opening the door to thousands more renters.

READ MORE: CYBER SHIELD: Andalucia in Spain to launch app to protect kids from online porn, gambling and scams

Higher limit for disabled renters

If you have a recognised disability, you can claim even more – up to €1,500 annually, increased from the current €1,000 limit. The same €25,000 income threshold applies.

How it works

The deduction reduces your regional income tax (IRPF) bill when you file your annual tax return.

You’ll need to provide proof of rental payments – typically your rental contract and bank statements showing monthly transfers to your landlord.

To claim, declare your rental expenses in the Andalucia regional section of your declaracion de la renta. The deduction applies to the regional portion of income tax, not the national portion.

The enhanced deduction, which comes into force with the 2026 regional budget, represents a €300 jump from the current €900 limit and will apply when you file your tax return in spring 2026 covering the 2025 tax year.

READ MORE: 5,000-year-old ‘lost tomb’ discovered in Teba – one of Andalucía’s biggest archaeological finds

The backstory

When the current PP-led regional government took power in 2019, the rental deduction stood at just €500 for under-35s earning up to €19,000.

It’s been progressively increased, with this latest bump bringing it to €1,200 for eligible groups.

An estimated 35,000 Andalucians will benefit from the increased limits, saving renters an additional €8 million on top of the €18 million already being saved under current deductions.

The measure forms part of Andalucia’s seventh round of tax cuts since 2019, which the regional government claims saves residents a combined €1 billion annually.

Click here to read more Explainer News from The Olive Press.

Walter Finch

Walter Finch, is the Digital Editor of the Olive Press and occasional roaming photographer who started out at the Daily Mail.
Born in London but having lived in six countries, he is well-travelled and worldly. He studied Philosophy at the University of Birmingham and earned his NCTJ diploma in journalism from London's renowned News Associates during the Covid era.
He got his first break working on the Foreign News desk of the Daily Mail's online arm, where he also helped out on the video desk due to previous experience as a camera operator and filmmaker.
He then decided to escape the confines of London and returned to Spain in 2022, having previously lived in Barcelona for many years.

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