Liquidable base of Personal Income Tax

In joint returns of family units consisting of both non-separated spouses (and their minor children or incapacitated adult children subject to extended parental authority): €3,400 per year.

In joint returns where only one parent forms the family unit with their children (cases of legal separation or absence of a marital bond): €2,150 per year.

This reduction does not apply when the taxpayer lives with the father or mother of any of the children forming their family unit.

In cases of shared custody, if there is no prior agreement between the parents on who opts for joint taxation, neither of them may use it for the common children.

Contributions may be reduced by the lesser of the following two limits:

2025 update: From 1 January 2025, vested rights from contributions made up to 31 December 2015, with their returns (DT 7ª of the TRLRPFP), are available for long-term unemployment, serious illness or a minimum of 10 years of seniority.

The maximum additional contribution the employee may make to the same occupational plan depends on salary and employer contribution:

Contributions exceeding the limits or that cannot be deducted due to insufficient taxable base may be applied in the five following tax years, provided a request was made in the return for the relevant year.

Regardless of the general regime, contributions to the spouse's pension plan (when the spouse has net earned and economic activity income below €8,000 per year) may reduce the taxpayer's general taxable base up to a maximum of €1,000 per year.

Pan-European personal pension products regulated by EU Regulation 2019/1238 have the same tax treatment as pension plans for the purposes of the taxable base reduction.

Social security systems established in favour of persons with the following are valid:

• Physical or sensory disability equal to or greater than 65%
• Mental disability equal to or greater than 33%
• Judicially declared incapacity, regardless of degree

• The person with disability themselves
• Blood relatives in the direct or collateral line up to the third degree
• The spouse
• Those who have the person in their care under guardianship, foster care or as appointed curators

Contributions made in favour of the person with disability by their relatives are not subject to Inheritance and Gift Tax.

When multiple contributions are made, the €24,250 limit is met first by contributions from the person with disability themselves.

Unreduced excesses may be applied in the five following tax years.

Persons with mental disability ≥ 33% or physical/sensory disability ≥ 65% who are holders of a protected asset constituted under Law 41/2003. Also holders of protected assets under regional civil law with the same purpose.

• Blood relatives in the direct or collateral line up to the third degree of the person with disability
• Spouse of the person with disability
• Those who have the person in their care under guardianship, foster care or representative curatorship

Non-monetary contributions are valued pursuant to Art. 18 of Law 49/2002. They do not generate capital gains or losses up to the limit giving entitlement to the reduction.

Unreduced excesses may be applied in the four following tax years.

Assets contributed to the protected asset may not be disposed of in the year of the contribution or in the four following years. Non-compliance (except in the event of death of the holder, contributor or workers) requires the contributor to repay the reductions applied plus late-payment interest.

For the person with disability who is the holder, contributions received are treated as earned income with the exemption under Art. 7.w) Personal Income Tax Law.

Child maintenance annuities fixed by court order do not reduce the taxable base of the payer; instead they give rise to a special method for calculating the gross tax liability (discussed in the gross tax liability chapter).

For the children who receive them, they constitute exempt income.

Annuities in favour of persons other than children, fixed by court order, do reduce the payer's general taxable base (without it becoming negative). For the recipient, they constitute earned income.

• Maximum annual contributions: €24,250 (including those of the promoter attributed as earned income)
• Maximum reduction limit: the lesser of 30% of net earned and economic activity income, or €24,250

Contributions are not accepted once the professional sports career has ended or the status of high-level athlete has been lost.

Vested rights may be realised in the same cases as pension plans (long-term unemployment, serious illness and, from 2025, contributions with at least 10 years of seniority), plus one year after the professional sports career ends.