The little-known tax relief scheme in Spain for living with a close relative aged over 65

Do you live with someone aged over 65 in Spain? Or even over 75 years old? We're talking about direct lineage: parents, grandparents, great-grandparents or other people with close ties "in a straight line by blood or adoption", as detailed by the Treasury. If this is the case for you, then, if also a taxpayer, you should take note that the national tax agency (AEAT) offers assistance in the form of a deduction against your personal income tax allowance (IRPF) of up to 1,150 euros per year, provided that a series of requirements are met.

What does this allowance for living with elderly people in the home entail? As stated in the AEAT leaflet explaining the 2024 personal income tax regulations for the over-65s, there is a deduction for elderly ascendants and the leaflet sets out the conditions to be met.

Firstly, the ascendant must be "over 65 years of age on the tax accrual date (normally 31 December) or, regardless of their age, must be a person with a degree of disability equal to or greater than 33%."

Secondly, the elderly person must have lived with the taxpayer for at least half of the tax period. "With regard to this requirement, disabled ascendants who, depending on the taxpayer, are admitted to specialised centres, are considered to be living with the taxpayer," specifies the leaflet.

The final requirement is that the ascendant must not have earned more than 8,000 euros in annual income during the fiscal year in question, excluding tax-exempt income, and also "that the ascendant does not submit an income tax return with an income exceeding 1,800 euros".

Therefore, according to the tax agency leaflet, the minimum tax relief available per ascendant will be 1,150 euros per year for each ascendant over the age of 65. The amount will increase to an additional 1,400 euros per year for each ascendant over 75 years of age. Finally, in the event of the death of an ascendant, which generates the right to the minimum benefit for this reason, "the applicable amount is 1,150 euros".