Canary Islands Tax Deductions Guide 2025: Rent, Health, and Studies

The Canary Islands have one of the most unique tax regimes in Spain, reflected in a generous catalog of regional deductions for the 2025 Income Tax season. Due to their insularity, the Canary Islands Government offers specific aid to compensate for health, education, and housing costs.

Housing and Rent in the Canary Islands

Rental deductions are particularly strong in the archipelago, with percentages higher than the national average:

1. Main Residence Rental

You can deduct 24% of the amounts paid during the year:

• ✅ General Maximum Limit: €740 per year.
• ✅ Increased Limit: €760 if you are under 40 or over 75 years old.
• ✅ Income Requirement: The sum of the taxable base must not exceed €22,000 (individual) or €33,000 (joint).

2. Energy Efficiency Renovation and Deed-in-Lieu

The Canary Islands also reward works that improve home energy efficiency and offer 25% deductions for rentals linked to "dación en pago" (deed-in-lieu of foreclosure) operations.

Health and Medical Expenses

Unlike other regions, the Canary Islands allow for the deduction of direct health expenses:

• ✅ Illness Expenses: Deduction for medical expenses, dentists, and other health services not covered by Social Security (subject to income limits).
• ✅ Disability: A fixed deduction of €400 for taxpayers with a disability degree of 33% or more.

Education and Insular Mobility

Living in an archipelago entails additional education costs that the 2025 Tax season aims to mitigate:

Concept	Max Deduction	Requirements
Studies off-island	€800 per child	For university or higher studies outside the island of residence
School Supplies	Variable	For compulsory education (Primary and ESO)
Relocation Expenses	Fixed amount	For work-related moves to another island in the archipelago
Childcare Expenses	15% - 18%	For children under 3 years old

Deductions for Specific Groups

• ✅ Seniors (Over 65): A €160 deduction for taxpayers in this age group.
• ✅ Unemployed: Specific fiscal aid for people who have been unemployed for a significant part of the year.
• ✅ Single-Parent Families: A €133 deduction for fathers or mothers raising children alone.

Tips for Canary Islands Taxpayers

1. Keep Health Invoices: To apply the illness expense deduction, a detailed invoice is vital. A simple pharmacy receipt is not enough.
2. Study Certificates: If you have children studying on another island or the mainland, request the official enrollment certificate.
3. Electronic Payments: The Canary Islands Tax Agency focuses on rental and medical payments being made via bank to prevent fraud.

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Frequently Asked Questions (FAQ)

Can I deduct my dentist bills in the Canary Islands?

Yes, dental expenses are included in the illness expense deduction, provided you meet the established income limits.

What counts as "studies off-island"?

It refers to children who must move to another island in the archipelago or to the mainland to pursue higher studies because they are not taught on their island of residence.

Is the unemployment deduction automatic?

Generally, no. You must verify that you meet the required number of days in unemployment and check the corresponding box in your tax return.