Tax Deductions in Spain when Buying Property and Vehicles

Investing the income earned at sea into property or vehicles in Spain is a common path for maritime professionals. Understanding how to leverage Spanish tax deductions can save you thousands of euros. This guide explores the current tax landscape for seafarers who are tax residents in Spain.

Real Estate: The End of the Federal Mortgage Deduction

Historically, Spain offered a generous federal income tax (IRPF) deduction for purchasing a primary residence (vivienda habitual). However, this was abolished for properties purchased after January 1, 2013. If you buy an apartment in Spain today, you cannot claim a federal tax deduction simply for paying a mortgage.

More information on Confirming Sea Service for a Pension in Spain

Regional Real Estate Deductions

While the federal deduction is gone, many Autonomous Communities offer their own regional deductions. For example, in the Valencian Community (which includes popular coastal areas like Alicante and Torrevieja), you may qualify for deductions if you fit certain demographics:

• Young Buyers: Deductions for buyers under 35 years old acquiring their first primary residence.
• Large Families: Special tax relief for legally recognized familias numerosas.
• Energy Efficiency: Significant IRPF deductions (up to 60%) are available if you undertake renovation works that substantially improve the energy efficiency rating of your home.

Purchasing Vehicles: The Electric Transition

Buying a standard petrol or diesel car yields no tax benefits for private individuals. However, Spain is heavily incentivizing the transition to electric vehicles (EVs).

Under the MOVES III plan and recent federal tax updates, individuals purchasing a new electric or plug-in hybrid vehicle can claim an IRPF deduction of 15% on the purchase price, up to a maximum base of €20,000 (yielding a maximum tax credit of €3,000). Additionally, installing a home charging station qualifies for a 15% deduction on costs up to €4,000.

Note: Direct government grants received (such as the €4,500-€7,000 from MOVES III) must be declared as capital gains in your annual tax return.