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Homeowners in Spain could save more than €1,300 on their income tax return
Home insurance linked to pre-2013 mortgages could cut tax bills for many people throughout Spain
The 2025-2026 tax return filing period is fast approaching and in these expensive times, we’ll all be looking for ways to keep a few more euros in our pockets rather than handing it over to the tax man.
On this front, there’s some good news, as Hacienda has confirmed that many homeowners will be able to deduct more than €1,300 in their 2025 income tax return, and the key could be your home insurance.
The 2025 tax filing season opens on Tuesday April 8, 2026, and anyone who earned €22,000 or more from a single employer will need to submit a return. Those who earned €15,876 and had more than one employer must also file.
What you end up paying, or getting back, depends on the deductions you can apply. One of the most significant for property owners relates to mortgages taken out before January 1, 2013.
If you bought your main home before that date and still have an active mortgage, you may qualify for the long standing deduction for investment in a primary residence. This includes part of your home insurance premium, as long as the policy is linked to the mortgage and has been in place with the same lender since the loan began.
The maximum amount that can be claimed each year under this deduction is €9,040. Taxpayers can deduct 15% of that figure, which means the saving can reach up to €1,356.
However, you cannot deduct the full cost of your insurance policy. Only the portion directly linked to the mortgage qualifies, usually the basic buildings cover required by the bank. Optional extras or additional protection are not included.
There are other housing related deductions still available this year. Families who live with relatives aged over 75 may be able to claim up to €2,500, provided they meet certain income limits and cohabitation rules.
Homeowners who carried out energy efficiency improvements may also benefit. Renovations that reduce heating and cooling demand can qualify for a percentage deduction, and in some cases this also applies to rental properties.
More traditional deductions linked to buying or financing a main residence under older transitional rules are still in place, along with tax relief for improvement works designed to meet the needs of people with disabilities.
With the deadline approaching, it is worth checking carefully which deductions apply. For some homeowners, that compulsory home insurance policy could make a significant difference to the final tax bill.
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