Europa Press, DAPA Images, Kanchanachitkhamma Good News from the Tax Office: If You've Done This, Your Tax Return Will Smile at You
Don't forget to add this deductible expense to your Income Tax Return, whose campaign starts next April 2.
Did you know that your donations to NGOs, unions, or political parties can reduce what you pay in the 2025 Income Tax Return? Hacienda offers tax deductions for those who support these causes. We explain how these deductions work and how you can benefit from them.
Donations made to non-profit organizations, unions, and political parties have tax benefits. These deductions allow taxpayers to reduce the amount of taxes they must pay, encouraging support for various social and political causes.
Hacienda Returns These Expenses in 2025: How to Deduct Donations to NGOs
When donating to NGOs, you can apply the following deductions in your 2025 Income Tax Return. You can deduct up to 80% of the first 150 euros (€150) donated. This means that if you donate 150 euros (€150), Hacienda will return 120 euros (€120) to you.
For donations exceeding 150 euros (€150), you can deduct 35% of the excess amount. If you donate 200 euros (€200), the first 150 euros (€150) have an 80% deduction (120) and the remaining 50 euros (€50) at 35% (17.5), totaling 137.5 euros (€137.5).
If you have donated to the same entity in the previous two years and the amount did not decrease, the deduction on the excess increases to 40%. This encourages loyalty in contributions to the same organization.
What About Donations to Unions and Political Parties?
Union membership fees are considered deductible expenses in the general taxable base, directly reducing the income on which the tax is calculated. This decreases the total amount of income subject to taxation.
Contributions to political parties, federations, coalitions, or electoral groups allow a 20% deduction on the total amount, with a maximum limit of 600 euros (€600) annually. This encourages participation and support for political formations.
For This Reason, It's Worth Taking Advantage of These Deductions
Benefiting from these deductions has several advantages, such as tax savings. They reduce the amount of taxes you must pay, allowing you to recover part of the donated money. Additionally, they promote support for organizations and entities that work for social, labor, and political well-being.
To ensure that your donations are correctly reflected in your 2025 Income Tax Return, follow these steps:
- Keep the receipts: Save the donation certificates or membership fee receipts. These documents are necessary to prove the contributions made.
- Verify that the entity is recognized: Ensure that the organization you donate to is covered by the tax incentive regime for patronage or is an officially recognized entity. This is essential for the donation to be deductible.
- Declare the donations in the corresponding section: When filing your return, include the donations in the designated boxes. This will ensure that Hacienda applies the relevant deductions.
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