Fees at State-Subsidized Schools and Personal Income Tax (IRPF): What Is Deductible?

Fees at State-Subsidized (Concerted) Schools and IRPF Deductions

Spain’s Ministry of Finance has recently stated that fees paid to state-subsidized (concerted) schools cannot be treated as deductible for IRPF purposes. According to the Spanish Tax Agency (Agencia Tributaria), payments made by parents to these schools are not considered donations, as there is a direct consideration in return—namely, a fixed fee for school services during the school months.

What Is Considered Deductible?

• Donations to foundations linked to state-subsidized (concerted) schools are deductible, provided they are voluntary and do not finance the school’s ordinary activities that directly benefit the student.
• Fixed fees paid for school services, as they are not voluntary, are excluded from this treatment.

The Ministry of Finance has warned that families who have included these fees as deductions must correct their returns by filing an amended return, as they do not meet the legal requirements to be considered donations.

Legal Framework: Law 35/2006

Law 35/2006 on Personal Income Tax establishes that taxpayers can deduct 75% of the first €150 donated, provided the valuation rules set out in the law are met. However, this regulation excludes fixed fees related to services provided by state-subsidized (concerted) schools.

Actions by the Spanish Tax Agency

The Spanish Tax Agency is not conducting a large-scale inspection campaign regarding donations to state-subsidized (concerted) schools, but it does carry out targeted checks. If irregularities are detected, it may require the last four non-time-barred tax years to be regularized, removing improper deductions and issuing new assessments.

On the other hand, state-subsidized (concerted) schools must declare this income at a 25% tax rate, in accordance with the applicable tax rules.