Do you have a large family? Become a familia numerosa!
It is easier than you may expect to become a familia numerosa, or large family. And the benefits are worth it. Here’s an overview of who is eligible.
State deductions – The parents of a familia numerosa can claim a deduction of up to €1,200 a year off their income tax (IRPF), or €2,400 if you belong to a special category. Requirements are:
- Be in employment (self-employed or employee) and be paying into the Social Security or equivalent scheme. However, pensioners and the unemployed who are drawing unemployment benefit are included in this category.
- Have the official title of familia numerosa as issued by the region of Spain within which you live.
When contacting Cervantes Alarcón Consulting to do your annual tax return (IRPF) make sure you have your title up to date! (See below)
Regional deductions –
Most of the regions of Spain offer additional benefits to familia numerosas. For example, the Islands and north African cities offer discounted travel to such families resident there. There may also be additional tax breaks.
In Andalucía, there are additional financial benefits available to those families whose income is low enough to qualify. A list (in Spanish) of such benefits is available from the Junta de Andalucía.
Municipal benefits –
Many towns will offer benefits to large families, check with your social services at the town hall. Some larger towns offer lower municipal taxes to such families.
Who can get the designation
It’s easier than you think. The following examples both qualify:
- A two parent family needs to have three dependants, or two dependants of which one has a 65% handicap
- A one parent family where the other parent has died only needs two dependants and no disability.
- In Andalucía, having twins or more also qualifies.
The two parents have to be married in order to qualify. With the exception of some regions, if the parents are not married then only one has the right to access tax deductions and be included in the familia numerosa.
When counting children as dependants, the children don’t have to belong to both parents. If two people, each with children, marry then the whole family unit is considered to be one family.
The children must live with their parents and be under the age of 21 (unless handicapped). An exemption to the age of 25 is granted when the child is in full time education and still lives in the family house.
Children must not earn more than the SMI (minimum wage, which is €9.907.80 for 2017).
Get the paperwork in order
You need to apply for a título de familia numerosa. This will come with an expiry date and you have to renew it before the date. The Tax Office receives a monthly update from the regions on these titles and will automatically withdraw any tax deduction upon expiry, although this can be recovered once the title is renewed.
In Andalucía, each member of the family unit over the age of 14 will receive an individual identity card allowing them access to services, and granting them free entry to many government run schemes and organisations.