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If your salary is on the lower end of the scale, you might be able to benefit from a new tax deduction allowing a bonus of up to €340 when you file your 2026 Spanish income tax return.

 

This measure, introduced by Law 5/2025 and retroactive to January 1 2025, aims to help workers with the lowest salaries. The deduction won´t be added to your monthly pay, as such, but reduces the tax you owe, or increases your refund when you file your taxes the next year.

 

To qualify, your total annual earned income must not exceed €18,276. If you receive other income, such as rent, this amount cannot exceed €6,500 a year. Those earning less than €16,576 will get the full €340 deduction. For incomes between €16,576 and €18,276, the deduction gradually decreases - you subtract €0.20 for every euro over €16,576. Anyone earning above €18,276 will not qualify for this tax break.

 

This new deduction offers some welcome relief for lower-income workers and rewards their efforts in a practical way through the tax system.

 

If you think you might qualify, keep it in mind for your 2026 tax return - it could mean a bit of extra money back in your pocket.

 

 

 

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