Homeowners in Spain Could Save Over €1,300 on 2025 Income Tax

Homeowners in Spain may be eligible for tax savings exceeding €1,300 when filing their 2025 income tax returns. These savings are linked to home insurance policies associated with mortgages taken out before 2013.

Tax Filing Season Details

The 2025-2026 tax return filing period begins on Tuesday, April 8, 2026. Individuals who earned €22,000 or more from a single employer, or €15,876 from multiple employers, are required to file a return.

Mortgage Deduction for Primary Residences

Homeowners who purchased their primary residence before January 1, 2013, and still have an active mortgage may qualify for a deduction related to investment in a primary residence. This includes a portion of their home insurance premium, provided the policy has been continuously linked to the mortgage with the same lender since the loan originated.

Deduction Amount and Calculation

The maximum amount eligible for this deduction is €9,040 annually. Taxpayers can deduct 15% of this figure, potentially saving up to €1,356. However, only the portion of the insurance premium directly linked to the mortgage – typically the basic buildings cover required by the bank – qualifies for the deduction. Optional extras or additional protection are not included.

Additional Housing-Related Deductions

Other housing-related deductions may also be available during the 2025 tax season.

Impact of Rising Costs

With rising energy prices and increasing rents, homeowners are seeking ways to reduce their tax burden. This deduction offers a potential avenue for savings during financially challenging times.