Good news for many residents on the Costa Blanca as the government has approved changes that could increase tax savings for residents.
The new measure increases the income limits that allow taxpayers to claim deductions for certain everyday health and wellbeing expenses.
These include costs linked to dental treatments, glasses or contact lenses, treatments for rare diseases and gym memberships.
Higher income limits
Until now, tax savings for residents were only available to people with lower incomes. However, the new rule significantly raises the limits.
The maximum income allowed to claim these deductions increases:
- From €32,000 to €60,000 for individual tax declarations
- From €48,000 to €78,000 for joint declarations
Because of this change, around 300,000 additional taxpayers will now qualify for these deductions.
In total, close to one million people are expected to benefit from the measure in the next tax return.
Around €100 million in tax savings expected
Officials estimate that the expanded deductions could lead to around €100 million in savings for taxpayers in the next tax campaign.
According to government figures, deductions related to healthcare and sports expenses will represent about €27.2 million in additional savings in 2025 alone.
For comparison, the total savings from these deductions were about €45 million in 2023 and roughly €67.4 million in the last tax campaign.
The changes apply to the upcoming tax season
Importantly for taxpayers, the changes will apply retroactively. This means they will be included in the next La Renta campaign starting on 8 April.
That means residents who have paid for things such as dental work, prescription glasses, contact lenses or gym memberships may be able to claim a deduction when submitting their next tax return.
Part of wider tax reforms
The measure is part of a broader tax reform introduced in recent years. According to official figures, residents have already saved more than €398 million in different taxes since the reforms began in 2023.
This includes savings from changes to inheritance and donation tax, property transfer taxes for young buyers and other tax reductions.
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