The Spanish Mortgage Tax Deduction for Residents in 2026: Who Can Still Claim and How Much

Spain abolished its main-residence mortgage tax deduction on 1 January 2013, but a transitional regime lets qualifying residents keep claiming it year after year. The deduction, governed by Disposición Transitoria 18ª of Ley 35/2006 (the LIRPF), reduces your IRPF bill by 15% of up to EUR 9,040 of annual mortgage and related costs, worth at most EUR 1,356 per year in most regions and up to EUR 1,491.60 in Catalonia’s enhanced regional band. It is a resident-only benefit with a strict cut-off, an income ceiling, and several eligibility traps that catch foreign buyers who assume a Spanish mortgage always comes with tax relief.

Who still qualifies for the mortgage deduction in 2026?

The deduction survives only under the transitional regime in Disposición Transitoria 18ª of Ley 35/2006. Ley 16/2012, the consolidation budget law of 27 December 2012, suppressed the deduction for new acquisitions from 1 January 2013, but preserved it for taxpayers who had already started. According to the Agencia Tributaria, you qualify if you meet one of three conditions: you acquired your main home or paid towards its construction before 1 January 2013, you paid for rehabilitation or extension works before that date (provided the works finished before 1 January 2017), or you paid for disability-adaptation works before that date (with the same 2017 completion deadline).

There is a further requirement that catches some late claimants. The Agencia Tributaria states you must have actually applied the deduction in 2012 or an earlier year, with three exceptions: you had no IRPF liability to offset it against, you were not obliged to file a return, or the amount invested did not exceed a reinvestment exemption or prior deduction bases. STS 1626/2023 of 4 December 2023 broadened this further, confirming that a taxpayer who bought before 2013 but never claimed the deduction in earlier years can still begin claiming it, provided all other conditions are met. This removed a barrier that had previously stopped some eligible owners from starting.

How much is the deduction actually worth?

The deduction is 15% of your qualifying base, capped at EUR 9,040 per year. The Agencia Tributaria confirms the rate is split into a 7.5% state tranche and a 7.5% regional tranche, with the regional portion set by each autonomous community. Most regions apply the default 7.5%, but Catalonia sets a higher regional rate for a specific group of taxpayers. At the default 15% rate, a resident paying the full EUR 9,040 base receives EUR 1,356 off their IRPF bill. A resident paying EUR 6,000 in mortgage capital and interest receives EUR 900. The saving is a tax credit, not a deduction from income, so it reduces the final tax liability directly, euro for euro, up to the amount of IRPF you owe.

Regional rate comparison

The state tranche is fixed at 7.5% everywhere, but the regional tranche varies. The Agencia Tributaria’s 2025 manual sets out the position in a single table.

Region	State tranche	Regional tranche	Total deduction rate	Maximum annual saving (on EUR 9,040)
Andalusia	7.5%	7.5% (default)	15%	EUR 1,356
Madrid	7.5%	7.5% (default)	15%	EUR 1,356
Catalonia (general)	7.5%	7.5%	15%	EUR 1,356
Catalonia (enhanced)	7.5%	9%	16.5%	EUR 1,491.60

The enhanced Catalan rate applies only to taxpayers who acquired their main home or paid towards its construction before 30 July 2011, and who meet one of four conditions on the filing date: aged 32 or under, unemployed for 183 days or more in the tax year, disability of 65 per cent or greater, or part of a family unit with at least one child. The same EUR 30,000 income ceiling applies. Note that Andalusia and Madrid both apply the default 7.5% regional tranche for the transitional deduction; their separate regional deductions for vivienda protegida and young buyers are distinct benefits and do not change the transitional rate.

Deduction calculation at a glance

Item	Value	Source
Maximum annual base	EUR 9,040	Art. 68.1.1 LIRPF (redaction 31-12-2012)
State tranche rate	7.5%	AEAT IRPF 2025 manual
Regional tranche rate (default)	7.5%	AEAT IRPF 2025 manual
Total deduction rate (default)	15%	AEAT IRPF 2025 manual
Maximum annual tax saving (default)	EUR 1,356	Derived (15% of EUR 9,040)
Maximum annual tax saving (Catalonia enhanced)	EUR 1,491.60	Derived (16.5% of EUR 9,040)
Income ceiling (base imponible minus minimum)	EUR 30,000	AEAT IRPF 2025 manual

What costs go into the deduction base?

The base is broader than just the mortgage repayment. The Agencia Tributaria lists the following as qualifying amounts paid in the tax year: the capital amortisation portion of the mortgage, the interest portion, and the premiums of life and fire insurance policies where these are required under the mortgage conditions. It also includes the cost of interest-rate hedging instruments regulated under Article 19 of Ley 36/2003, and the purchase costs that ran to the buyer at acquisition (notary, Land Registry, ITP or IVA, architect fees, and licence fees) in the year they were paid.

Several costs are explicitly excluded. Repairs and maintenance, improvements, and independently purchased garages, gardens, pools, or sports facilities do not count. The Agencia Tributaria notes that garages acquired with the home are assimilated to the main residence, capped at two spaces. Cláusula suelo refund amounts that are returned before the IRPF filing deadline also fall outside the base.

Does joint filing double the EUR 9,040 limit?

No, and this is a common misunderstanding. The Agencia Tributaria is explicit: the EUR 9,040 maximum base applies “en idéntica cuantía en tributación conjunta”, meaning the same figure whether you file individually or as a couple jointly. If both spouses contribute to the same mortgage, they share the single EUR 9,040 base between them. The limit does not double to EUR 18,080 in a joint return.

The income ceiling, however, is computed per taxpayer with a right to the deduction in joint filings. The EUR 30,000 threshold (base imponible total minus the personal and family minimum) is assessed individually for each spouse who qualifies, so a couple filing jointly where both paid towards the mortgage each gets their own EUR 30,000 test.

What income ceiling applies?

A EUR 30,000 income cap gates the deduction. The Agencia Tributaria states that your base imponible total, minus the personal and family minimum, must not exceed EUR 30,000 in the year you claim. In a joint filing, this is computed individually for each qualifying taxpayer. If your income exceeds the threshold, you lose the deduction entirely for that year, even if you meet every other condition. This rule was introduced alongside the transitional regime and narrows the benefit to moderate-income residents.

A worked example: resident landlord vs non-resident

Consider two owners of a EUR 450,000 apartment in Marbella, both with a EUR 250,000 mortgage acquired in 2011 and both paying EUR 8,200 in mortgage capital, interest and required insurance in 2026.

Owner A, a Spanish tax resident in Andalusia with EUR 42,000 salary. Her base imponible minus the personal minimum comes to EUR 28,400, below the EUR 30,000 ceiling. She deducts 15% of EUR 8,200, reducing her IRPF bill by EUR 1,230. Because she is resident, she also reports her rental income from a second property within IRPF, where the 60% rental income reduction may apply. The mortgage deduction and the rental reduction sit in the same IRPF return.

Owner B, a UK resident who files under IRNR. She pays the same EUR 8,200 towards the same mortgage, but the IRNR regime has no equivalent main-residence mortgage deduction. She cannot claim the EUR 1,230 relief. Her non-resident income tax is computed on the imputed income of the property and any rental yield at the flat 19% (EU) or 24% (non-EU) rate, with no mortgage deduction against it. The structural gap is permanent: a resident who becomes non-resident loses the deduction from the year they cease residency, even if the mortgage continues.

Can a non-resident claim this deduction?

No. The mortgage deduction is an IRPF benefit, and IRPF is the tax regime for Spanish tax residents. Non-residents file under the IRNR (Impuesto sobre la Renta de no Residentes), which has no equivalent main-residence mortgage deduction. A resident who moves abroad and becomes non-resident loses the right to claim from the tax year in which they cease residency, even if the mortgage continues. The tax residency 183-day rule determines whether you are even in IRPF.

The cross-border dimension has seen recent movement on a related but separate front. In July 2025, the Audiencia Nacional ruled that non-EU residents should be able to deduct rental expenses under IRNR, citing the EU free movement of capital principle. That case concerns rental income expense deductibility, not the main-residence mortgage deduction, and the State Attorney has signalled an appeal. The IRPF mortgage deduction itself remains resident-only.

What happens if you sell and use the proceeds to clear the mortgage?

A TEAC resolution dated 20 October 2025 (recurso extraordinario de alzada 00/02995/2025) clarified a previously ambiguous scenario. If you sell your main home and use part of the sale proceeds to cancel the remaining mortgage, you can still apply the deduction for those amounts in that tax year, provided you meet the standard requirements. The TEAC reasoned that the fungible nature of money means the source of the mortgage repayment is irrelevant; what matters is that your net assets increased by at least the deduction base during the year, per Article 70 of the LIRPF. This is a significant widening for residents near the end of a mortgage term.

How does the 2025 Ley 7/2024 savings-base reform interact?

Ley 7/2024 of 20 December 2024 did not change the mortgage deduction itself, but it reformed the savings base (base liquidable del ahorro) scale with effect from 1 January 2025, and this matters for residents who claim the deduction and also hold savings income. The new scale, set out in the Agencia Tributaria’s novedades page, runs from 9.5% on the first EUR 6,000 to 15% above EUR 300,000, in five brackets. The mortgage deduction applies to the general base (base liquidable general), not the savings base, so the two run in parallel within the same IRPF return.

The practical point is that a resident landlord with both mortgage costs and savings income now faces a slightly different tax bill on the savings portion, while the mortgage deduction continues to offset the general-base liability unchanged. Ley 7/2024 also added a disposición final décima sexta that sets the procedure for claiming DT 2ª refunds (the cláusula suelo-related deductions) for the 2019 to 2022 tax periods, with one period per calendar year from 2025. This is a procedural change that affects how far back a resident can regularise a missed deduction, not the deduction’s value.

How does this fit with other Spanish property tax rules?

The mortgage deduction sits inside the resident IRPF framework, which also covers rental income, imputed income on a second home, and capital gains on sale. If you are a resident who lets out a property, your rental income is taxed within IRPF, and you may also qualify for the 60% rental income reduction under certain conditions. The mortgage deduction applies only to your main home, not to investment properties.

For residents weighing whether to hold a mortgage or pay it down, the deduction is a modest but real factor. At the maximum base, it returns EUR 1,356 per year (or EUR 1,491.60 in Catalonia’s enhanced band). Whether that offsets the after-tax mortgage interest cost depends on your rate, your IRPF marginal band, and whether you also have the non-resident mortgage or Mortgage Law context in mind. The Spanish property tax calendar fixes when your IRPF return is due, and the resident IRPF guide sets the wider framework.

Key eligibility traps to avoid

Several situations disqualify or complicate a claim. First, if you previously claimed the deduction on another main home, you cannot claim on a new one until the amounts invested in the new property exceed those invested in the prior one, to the extent they were deducted. Second, if you sold a main home and the gain was exempt under reinvestment rules, your new deduction base is reduced by the exempt gain. Third, the patrimonial test under Article 70 requires your net assets at year end to exceed those at the start by at least the deduction base, otherwise the deduction is denied for that year.

The deduction also cannot be carried forward. If you pay more than EUR 9,040 in a single year, the excess does not transfer to future years. And the income ceiling is absolute, not tapered, so crossing EUR 30,000 by a single euro removes the entire benefit for that year. If you are near the threshold, the timing of discretionary income can matter.