Back to school with tax cuts: regional governments apply deductions for education expenses

BarcelonaReturning to school represents a very high expense for many families, more than 422 euros on average. For the entire year, this is more than 2,000 euros in private schools, which is reduced by half in public schools, according to the Organization of Consumers and Users (OCU). However, some of these costs can be deducted from the personal income tax return (IRPF) in the regional bracket. Catalonia, the community to which the school exists a school voucher for each of the 795,000 primary and secondary school studentsOf the fifteen autonomous communities with a common system, it offers the fewest tax benefits of this type. The only one related to education concerns higher education, as it can be applied to loans to finance master's or doctoral degrees. 100% of the interest associated with these loans is repaid.

In the remaining autonomous communities with a common system (excluding the Basque Country and Navarre), there are various deductions ranging from childcare costs to materials such as textbooks or school transportation, languages, cafeteria services, domestic help, extracurricular activities, and even uniforms, according to a study (Aedaf). Andalusia, Aragon, Asturias, the Balearic Islands, the Canary Islands, Cantabria, Castilla-La Mancha, Castilla y León, Extremadura, Galicia, Madrid, Murcia, the Valencian Community, and La Rioja have tax deductions and benefits for different types of school expenses.

Spending on textbooks is one of the most significant. The average is €203 per student, but there are many variations depending on the educational level and type of school, warns the OCU (Spanish Association of Educational Institutions). The fact is that many autonomous communities have programs for access to free textbooks, such as the €60 school voucher in Catalonia. Added to this is an average of €92 for school supplies, and spending on clothing and footwear, including uniforms, which averages €181 per student in schools that require it.

Daycare Centers

Furthermore, the membership fee for the AFA (Association of Families with Disabilities) or similar associations adds about 40 euros annually. In total, equipping a child with the "necessary" equipment for returning to school involves an initial outlay of about 520 euros, a figure that can increase significantly if it is necessary to purchase computer equipment such as tablets or computers. Given this situation, the OCU (Spanish Association of Educational Organizations) reiterates its demand for expanded aid to families, especially those in more vulnerable situations, through tax deductions and other mechanisms to ease the burden of returning to school each year.

The regional panorama is broad. One of the most widespread benefits is related to deductions for childcare or childcare expenses, with percentages ranging from 10% to 50% in some communities and limits on the amount. Deductions are available in Aragon (15%), Asturias (15%), the Balearic Islands (up to 50%), the Canary Islands (15%), Cantabria (15%), Castilla-La Mancha (30%), Castilla y León (100% of tuition fees up to €1,320), and Murcia (20%). In Extremadura, 10% of childcare expenses for children up to 14 years of age can be deducted, up to a maximum of €400. In Galicia, the deduction is up to 30%, with a limit ranging from €400 to €600. A similar case is La Rioja. In the Community of Madrid, the deduction is 25% of childcare fees, rising to 40% for large families. In Andalusia, there is also a 20% deduction on the fixed Social Security contribution rate for employees, with a limit of €500 per year, as is the case in Castilla y León. Murcia has introduced a new tax deduction for glasses and contact lenses for children under 12, and in the Balearic Islands, self-employed workers, for the first time, have deductions for textbook expenses.

In Andalusia, the most populated region, in addition to the deduction for hiring childcare workers, there is a 15% deduction for school and extracurricular language or computer expenses, with a limit of €150. Another large autonomous region, Madrid, has deductions of 15% for educational expenses and language teaching and 5% for the purchase of uniforms, among others. In the Balearic Islands, textbook expenses are 100% deductible up to €220, and extracurricular language expenses are 15% deductible, with a limit of €110 per child, among other advantages. And the Valencian Community, which limits the 15% deduction for childcare and early childhood education expenses to €270, allows a €110 deduction per child for school supplies, in addition to deducting 50% of a caregiver's Social Security contributions.