The 2023/2024 income tax campaign in the Balearic Islands begins today, 3 April, and will run until 1 July 2024. This year presents an increase in terms of tax deductions applicable in the Personal Income Tax (IRPF) return, with a significant impact on savings for taxpayers. Specifically, 23 regional deductions are included, of which a total of eight have been improved or are newly created, representing an increase of 35%.
With more flexible income level criteria, approximately eight out of ten taxpayers are eligible to take advantage of these reliefs. A total saving of €36 million is projected, a growth of 85% compared to €19.5 million in the previous year.
What’s new in the Renta 2023/2024
Among the new features are the deduction for birth and adoption, which offer variable amounts depending on the number of children and with the possibility to advance payment retroactively from 1 January 2024. In addition, the deduction for renting a home has been extended for different demographic groups, such as those over 65 years of age who are not in employment, and the deduction for higher education studies outside the island has been increased, eliminating the requirement that there be no educational offer in Mallorca. These measures are in addition to improvements in deductions for the purchase of textbooks, for fostering children under 6 years of age for reasons of conciliation, and for extracurricular learning of foreign languages, among others.
Income Tax Deductions 2023/2024
Area | Deduction | Percentage/Amount | Limit/Conditions |
---|---|---|---|
Housing | Deduction for rental of housing | 15% of expense | Maximum of €530; over 65 years old without work activity. |
Deduction for rental of housing (for under 30 years, disabled, etc.) | 20% of expense | Maximum of €650; specific conditions apply. | |
Deduction for variable mortgage interest | €400 | Improvement compared to the €250 of the previous year. | |
Deduction for improving the sustainability of housing | 50% of expense | Limit of €10,000. | |
Deduction for rental of property intended for housing | Up to 75% of expense | Maximum of €440 in insurance premiums for defaults. | |
Deduction for rentals derived from temporary transfer for work reasons | 15% of expense | Maximum of €440. | |
Education | Deduction for higher education studies off the island | 50% of full fee | Maximum of €1,880 per child; requirement of educational offer in Mallorca suppressed. |
Deduction for purchase of textbooks | 100% of cost | Maximum of €250 per child; specific conditions apply. | |
Deduction for extracurricular learning of foreign languages | 15% of expense | Maximum of €110 per child. | |
Personal situations | Deduction for birth | Variable | €800 (1st child), €1,000 (2nd child), €1,200 (3rd child), €1,400 (4th and subsequent); widening of income limit for large families and single-parent families. |
Deduction for adoption | Variable | Same amounts as deduction for birth; widening of income limit for large families and single-parent families. | |
Deduction for fostering children under 6 years for reconciliation reasons | Up to 50% of expense | Maximum of €900; specific conditions apply. | |
Deduction for taxpayers with physical, sensory, or psychic disabilities | Variable | Details not specified in the summary. | |
Personal and Family Minimum | Personal and family minimum | 10% increase | For taxpayers over 75 years old, for the second child and subsequent ones, for dependents in the charge of the taxpayer. |
Renta Ágil campaign
This year, the Balearic Islands Tax Agency (ATIB) is once again making the Renta Ágil service available to citizens to help them file their personal income tax return. This service is complementary to the one offered in its offices by the State Tax Administration Agency (AEAT).
Taxpayers will be able to make an appointment from 28 May to 28 June, and then file their return in person between 3 June and 1 July.
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