Save on Taxes Before Year-End: Deadlines That Matter in 2026

Saving on taxes before year-end is mostly about timing: acting before December 31 closes the window. If you are a tax resident on Mallorca and want to do something for your 2026 Renta while there is still time, this is your last chance for a pension plan payment, offsetting losses in your investment account, and a few other levers that disappear once the year turns. This guide walks through which steps pay off most before the new year, with concrete amounts and the official sources behind them.

Year-end tax planning means every decision a tax resident in Spain makes before December 31 to lower their income tax for the current year, whether through a payment, realizing a loss, or the timing of a sale.

The Pension Plan: Secure Up to 5,750 EUR in Deductions

A payment into a pension plan lowers your taxable base directly, which works harder than a simple deduction from the tax owed. As an employee or retiree, you can pay in up to 1,500 EUR a year, or 30 percent of your income from employment and self-employment, whichever is lower. This is set out in Article 52 of the Ley 35/2006 on income tax.

If you are self-employed (autonomo), you get your own extra allowance of up to 4,250 EUR for simplified employment pension plans where you are both the sponsor and the member. Combined with the general amount, that comes to up to 5,750 EUR you can still pay in before December 31. For a closer look at how this deduction works, see Pension Plans for Autonomos: Deduct Up to 5,750 EUR. What matters is that the money actually lands in the plan's account. A transfer that only clears in early January counts for 2027.

Offsetting Gains and Losses in Your Investment Account

If you sold investments at a loss in 2026, you can still offset that loss against gains from other sales until December 31. Gains and losses are always grouped by calendar year, so a sale on January 2 already counts toward the 2027 Renta.

This matters most for losses from 2022: unused losses can be carried forward for four years, and 2026 is the last year for those. If you do not offset them against a gain now, the deduction is gone for good.

If you do not have a matching gain, a negative balance from asset transfers can also be offset up to 25 percent against investment income such as interest or dividends. On 1,500 EUR of interest income, that is up to 375 EUR. For more on how investment accounts are taxed, see our guide Capital Gains in Spain: Taxing ETFs, Stocks, and Investment Accounts.

Donations to approved organizations also only count if the money reaches the organization by December 31. The first 250 EUR carry an 80 percent deduction. For exactly how that works, see Tax-Deductible Donations in Spain: Up to 80% Back.

Landlords: Pay IBI and Running Costs on Time

If you rent out an apartment or house on Mallorca, expenses count for the year in which you actually pay them. The property tax, repairs, community fees, or insurance on the rented property all reduce your rental income on the tax return, but only if the payment is made by December 31.

If you already have the property tax bill for 2026 but have not paid it yet, check your town hall's payment deadline. Some municipalities on Mallorca allow installments into the autumn, others do not issue the second installment until November. Pay before December 31 and the amount still counts toward the 2026 Renta. Pay in January and the deduction shifts to next year instead.

Timing a Sale Right

If you sell a property, a sizeable stock position, or cryptocurrency at a profit in 2026, it is worth looking at the tax brackets on the base del ahorro (savings tax base):

• Up to 6,000 EUR in gains: 19 percent
• From 6,000 to 50,000 EUR: 21 percent
• From 50,000 to 200,000 EUR: 23 percent
• From 200,000 to 300,000 EUR: 27 percent
• Above 300,000 EUR: 30 percent

If a large sale is coming up right around year-end, it can be worth splitting it into two parts or pushing it into early January, especially if you already have a large gain this year. Whether that pays off for you depends on your overall tax situation, and it is a question for a local tax advisor.

Frequently Asked Questions

By when does my pension plan payment need to arrive to count for 2026? The money has to be in the plan's account by December 31, 2026. A transfer that only goes through in the new year counts toward the 2027 Renta.

What happens to investment losses from 2026 that I do not offset? Unused losses from the current year can be carried forward for four more years. Losses from 2022, though, can only be used on the 2026 Renta, and after that they expire for good.

Do I need to pay the IBI before December 31 even if I live in the property myself? No. The timing of the payment only matters for your tax return if the property is rented out and the IBI is claimed as a deductible expense. For an owner-occupied home, the payment date has no effect on your taxes.

Conclusion

The biggest levers before year-end are limited, but they expire for good on December 31: the pension plan payment, offsetting losses in your investment account, expenses paid on time for a rented property, and a deliberately timed sale. If you still have open losses from 2022, keep a close eye on them in the coming weeks, since this is the last chance before they disappear. At the same time, check whether you will hold more than 50,000 EUR abroad at year-end, because that means Modelo 720 or 721 in the new year. For larger amounts or a planned sale, it is worth talking to a local tax advisor who knows your full situation beforehand.