Tax deductions for individuals and companies: are you taking advantage of everything?

Tax deductions for individuals

Deductions for individuals, beyond the usual expenses, highlight some cases.

We must emphasise the following possibilities:

Donations:

Donations to NGOs and membership in political parties and trade unions are taxed.

What you may not know is that the upper limits of relief have increased substantially.

For example, in 2025, the first 250 euros have a deduction of 80% and, from now on, between 40 and 45% (if the donation is recurring).

Care of dependants:

The Administration also recognises deductions for those people who take care of the elderly or dependants.

This is not only recognised for childcare.

However, for this you have to check the degree of dependence.

In this case, a significant part of the tax base of taxes could be reduced.

Mortgages prior to 2013:

This is an option that exists only for those who contracted a mortgage for their home before 2013.

In this case, you can apply the tax deductions that existed up to that moment and until you cancel it.

Reforms for energy efficiency:

Housing efficiency reforms are also subject to tax deductions.

In some cases, through direct discounts on the personal income tax in the regional or state section.

There are other types such as the direct subsidy, or the bonuses in the Real Estate Tax (IBI), managed by the municipalities.

On the other hand, you have to know that there are other deductions depending on the territory.

For example, in Aragon you will have it for living in depopulation areas.

In the Balearic Islands, the Canary Islands and Catalonia, you will have deductions linked to your studies.

Widowed taxpayers have deductions in Catalonia, Extremadura and the Valencian Community, in Murcia for installing water-saving devices, in the Canary Islands for contracting insurance premiums and, finally, in La Rioja for housing in rural areas.

Tax deductions for companies

Tax deductions for companies are especially important.

Not only for commercial companies, but for the self-employed with their own business.

Let’s include some examples of little-known deductions:

Tax deductions for hiring:

Tax deductions for contracting can be of several types.

For workers with some type of disability (33 to 65%) or for the long-term unemployed (50%), a significant part of the contributions to be paid is reduced.

Free amortisation:

Free amortisation is another of the possibilities that SMEs and the self-employed have with their assets.

Specifically, you can accelerate that amortisation instead of fragmenting it, which means tax savings in a year, if you want.

Levelling reserves:

Capital levelling reserves allow the corporate tax base (IS) to be reduced by 10%.

This is applied as compensation for previous years with losses, for a maximum of 5 years.

Savings of supplies in teleworking:

The supplies of those people who telework on their own account can also be saved.

Electricity, telephone, internet connection, gas, water or others can be reduced in the proportion they occupy of the expense.

Capital reserves:

There is also the possibility of applying capital reserves.

Specifically, to apply reserves in the capital company, which allow reducing up to 10% of the taxable base of the IS.

Deduction for investments in cultural productions:

Investment in cultural products is promoted from the administration.

You can deduct 30% of the tax base up to the first million euros and 25% later.

As we can see, it is convenient to have some kind of specialised advice, because, in addition, this can change year after year.

The approval of Budgets in the State and in the Autonomous Communities introduces these variations.