The 2025 tax season is just around the corner,and residents of the Community of Madrid under the age of 40 will be able to deduct up to €1,237 for the rent of their primary residence.
The deadline for filing tax returns will start on April 8 and last until June 30, and it is important to review the draft carefully and ensure that all the requirements for benefiting from the deduction are met.
In this case, it is a regional tax advantage that allows you to deduct 30% of the amount paid for the lease. The aim is to alleviate the rise in rents in the Community.
Age and financial requirements
Income tax return form. | Editorial credit: Tax Agency
According to the Community of Madrid, applicants for the tax reduction must be under 40 years of age on December 31, 2025, an age limit that was extended in 2024 and which, until then, only included people under 35.
The deduction is intended for those who pay high rent, so the amount paid for their primary residence must exceed 20% of their taxable income (the sum of the taxpayer’s general taxable income and savings).
In addition, another requirement is not to have exceeded certain limits in the income tax return:
- €26,414.22 for individual taxation .
- €37,322.20 for jointtaxation .
- €61,860 when adding the taxation of the members of the family unit.
Contracts and proof of payment
Submission of documents. | Editorial credit: Shutterstock
The tenant must keep the contract and proof of payment of their rent, as the tax authorities may require them. They will also have to provide a copy proving that their landlord has made the corresponding deposit of the security deposit with the Social Housing Agency of the Community of Madrid.
If the landlord has not done this or does not provide a copy, the tenant may still be eligible for the tax reduction. To do so , they must file a complaint with the Social Housing Agency of the Community of Madrid and include a copy of the document with their application.