Tax experts from TaxDown have indicated that, despite no new deductions being introduced, Madrid residents can optimize their IRPF tax burden by utilizing existing ones. Notably, a deduction of up to 1,000 euros is available for landlords who rent out empty properties, aiming to stimulate the rental market in the region.
In the housing sector, one of the most significant regional deductions in the Community of Madrid allows tenants to deduct up to 1,237.20 euros for their primary residence rental. This measure was strengthened last year by extending the maximum age to qualify from 35 to 40 years, thereby benefiting a larger number of Madrid residents.
Furthermore, the Community of Madrid introduced two new housing-related deductions last year for municipalities at risk of depopulation, which remain in effect this year. These include benefits for home acquisition and for changing residence to these areas.
The initial draft provided by the Tax Agency usually does not include regional deductions, as experts affirm. Yet, these are precisely what allow citizens to achieve greater savings and the best possible outcome.
Tax specialists also advise considering other important deductions. Donations to NGOs can generate a national deduction of 80% on the first 250 euros donated. Pension plans also offer advantages, allowing for a reduction in the general IRPF tax base. Additionally, there is a 1,200 euro deduction for mothers with children under 3 years old.
Experts warn about the five most common errors taxpayers make. The most widespread is accepting the Tax Agency's draft without reviewing it, which can lead to missed deductions or incorrect declarations. Other mistakes include not declaring all income, being unaware of eligible deductions (77% of taxpayers, according to TaxDown, are unaware), filing the declaration late, and not evaluating the option of joint taxation, especially for families or married couples where one spouse has low income or is unemployed.
