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Madrid Highlights Two IRPF Deductions as Renta Nears: €1,031 for Young Mortgage Interest, €515.50 for Caregivers

Strict eligibility rules deliver targeted relief to young mortgage holders alongside families caring for cohabiting elders.

Overview

  • Residents under 30 can deduct 25% of mortgage interest paid, capped at €1,031 per year, in the regional section of the IRPF.
  • The mortgage and home purchase must be dated on or after 1 January 2023 and the loan must finance the taxpayer’s habitual residence.
  • The mortgage-interest deduction applies only up to the month before the taxpayer turns 30, after which the right to claim ends.
  • Families may deduct €515.50 per qualifying ascendiente who lives with the taxpayer, either aged 65 or over or with a disability of at least 33%, with at least six months of cohabitation and income limits.
  • For caregiver claims, reported limits include the ascendiente earning under €8,000 a year and not filing a return with income above €1,800, and taxpayers are advised to review the Madrid boxes in the draft return and keep loan and bank records in case Hacienda requests proof.