Experts Urge Early Tax Planning for Spain's 2025 Income Tax Return

As the 2025 income tax declaration period in Spain approaches, experts emphasize the importance of taxpayers taking proactive financial steps before the December 31 deadline to optimize their tax outcomes. Economic journalist José María Camarero, speaking on COPE's 'La Tarde,' highlights that the income tax campaign starts in April 2026, but key decisions must be made now to fully benefit from savings opportunities. He pointedly notes that regional or autonomous community tax deductions are a "best-kept secret," with some regions offering up to 30 distinct deductions covering areas such as family expenses, investments, or housing.

Taxpayers are advised to carefully save all invoices and receipts—ranging from dental care to electric car purchases and housing investments—to support claims for these deductions, which will apply to the 2025 tax return. Camarero also suggests adjusting IRPF withholdings on pay slips ahead of the year’s close, especially for those with increased earnings, to prevent unexpected tax liabilities. Additionally, receiving part of one’s salary in non-cash benefits like childcare vouchers, health insurance, or meal vouchers, which are exempt from withholding, can be a fiscal advantage.

Contributions to pension plans remain a highly effective method to reduce taxable income, with a deductible cap of 1,500 euros before year-end. Homeowners holding mortgages signed before January 1, 2013, can still utilize existing housing deductions, including those associated with home insurance. Camarero insists on vigilance concerning life changes—such as marital status, residence shifts, or property transactions—as the Tax Agency closely monitors these and uses increasingly sophisticated algorithms to detect discrepancies, including inconsistencies between declared income and lifestyle as seen on social media.

Echoing his views, Camarero warns that large tax refunds often mean taxpayers have effectively loaned money to the government interest-free, underscoring the necessity of fine-tuning IRPF retentions. Any pending refund claims for 2025 must be submitted by December 31 to avoid delayed interest penalties.

Overall, early tax preparation and understanding regional deductions can result in significant savings and fewer surprises during the 2025 income tax return process.