The Madrid citizens who study and work will have an extra help this year in the Income Tax Declaration. This new regional deduction will allow saving up to 400 euros in the IRPF of 2026. The measure, already in force since January 1, is designed for those who combine employment and formal training and will be applied for the first time in the Income Tax campaign to be presented next spring.
The Community of Madrid has created a deduction in the autonomous part of the Personal Income Tax that allows to subtract 50% of the amount paid for the enrollment of official university studies of Degree or training cycles of FP of Higher Degree, with a maximum limit of 400 euros per taxpayer and year. It does not matter how much the course costs: the maximum saving in the quota will be 400 euros, and it is always calculated on the amount actually paid for enrollment.
According to the regional government’s estimates, around 15,000 young people will be able to benefit from this incentive, for which a maximum allocation of six million euros has been set aside. The measure is included in Law 6/2025 of the General Budget of the Community of Madrid for 2026 and is part of a broader package of tax reductions.
Who can deduct the 400 euros: requirements
It is not enough to be young and studying: the deduction is very much aimed at a specific profile of young workers. In order to be able to apply it, all these conditions must be met at the same time:
- To be under 30 years of age in the corresponding fiscal year.
- To be enrolled in a complete course of studies in official university degree or in cycles of FP of Superior Degree (it is not useful to be enrolled only in some subjects or non-official studies).
- To have worked at least 300 days during the year, self-employed or employed, with registration in Social Security or mutual society.
- At least five months of this work activity must coincide in the same year with the academic period, i.e., study and work at the same time, not consecutively.
- Not having a training contract, which is expressly excluded from this deduction.
The Community thus frames the measure as a recognition of the effort of those who train while contributing to the labor market in Madrid, focusing on the “culture of effort” and the retention of young talent.
How it will be applied in this year’s income tax return
In practice, the deduction will be applied on the regional part of the Personal Income Tax in the Income Tax campaign to be presented in spring 2027 (corresponding to the income and tuition of 2026). The taxpayer must include the 2026 tuition expenses in the regional deductions section of the tax return. In addition to calculating 50% of that amount and checking that it does not exceed 400 euros (if it does, only 400 are deducted) and keeping invoices and proof of payment of the tuition, as well as the documentation accrediting the work activity (work lives, contracts, pay slips, etc.), in case the Tax Authorities require proof.