A €2,500 benefit for the birth or adoption of a child

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1. The law creates a €2,500 benefit for each child born or adopted. It is paid either as a deduction from personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. or, if the tax requirements are not met, as a Social Security benefit.
2. The beneficiary is the mother in case of birth, or the woman in adoptions by people of different sexes; if she dies without claiming it, the other parent or adopter qualifies. The beneficiary must also have lived in Spain legally, effectively and continuously for the two years before the birth or adoption.
3. The tax deduction can be paid in advance, and the right to collect it can be transferred to the other parent or adopter. The application can be filed once the child is registered in the Civil Registry.
4. The non-contributory benefit is managed by the National Social Security Institute, though it can be delegated to the State Tax Administration Agency.
5. The benefit only applies to births from July 1, 2007 and to adoptions made from that date. Notifications filed before the law came into force count as applications.
6. The law also amends personal income tax and Social Security rules: family benefits become tax exempt and the amounts of other family benefits, such as the child allowance, are adjusted.

Who it affects

• Mothers who give birth in Spain and meet the residency requirements.: They can receive €2,500 per child, as an income tax deduction or as a benefit.
• People who adopt a child.: They are entitled to the same €2,500 benefit if the adoption is established or recognized by a Spanish authority.
• People with low income or who do not contribute to Social Security.: They receive the benefit as a non-contributory Social Security payment.
• Taxpayers in Navarre and the Basque Country under their regional tax rules (normativa foral).: They are entitled to the Social Security benefit, not the tax deduction.

Words worth knowing

IRPF

Impuesto sobre la Renta de las Personas Físicas: Spain's personal income tax.

Deducción

An amount subtracted from the tax you owe, reducing what you pay.

Prestación no contributiva

A Social Security benefit paid without requiring prior contributions.

Cuota diferencial

The final amount payable or refundable when filing the income tax return.

Normativa foral

The tax rules specific to Navarre and the Basque Country.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries