If you are getting ready to submit your tax return in Spain, there is one detail that could quietly reduce what you pay. From April 8, when the 2025 income tax campaign opens, some homeowners will be able to deduct part of their home insurance. The catch is that not everyone qualifies, and many people miss it simply because they assume it does not apply to them.

This is not a new benefit, but it is one that still catches people out every year. If you bought your home under certain conditions and still have a mortgage, there is a good chance you could be eligible without even realising it.

Who can actually claim the home insurance deduction

The first thing that matters is when you bought your home. This deduction is linked to older tax rules that still apply to properties purchased before January 1, 2013. If your home was bought after that date, this specific benefit will not apply, even if you have a mortgage and insurance in place.

The second condition is just as important. Your home insurance must be connected to an active mortgage, and in most cases, it needs to have been arranged with the same bank that granted the loan.

For many homeowners, that will sound familiar. When taking out a mortgage, banks often require insurance as part of the agreement. That is exactly the situation where this deduction comes into play.

But having insurance on its own is not enough. It has to be tied to the mortgage from the beginning.

Why many homeowners overlook this deduction

Every year, thousands of people go through the same routine. They open their draft tax return, check the main figures, and accept it without making changes. It feels easier and quicker, especially if nothing obvious looks wrong.

The problem is that the draft does not always include everything. Some deductions, particularly those linked to older rules, can be missing. Others may not be calculated correctly because the system does not have all the necessary details.

That is why tax advisers often say the same thing. Do not accept the draft without checking it carefully.

This home insurance deduction is a good example. It is easy to overlook, especially if you have had the same mortgage for years and do not think about it anymore.

What part of your insurance you can deduct

Even if you meet the conditions, there is another point that often causes confusion. You cannot deduct the full cost of your home insurance.

Only the part that is directly linked to the mortgage can be included in your tax return. If your policy includes extra coverage, such as protection for valuables or optional services, that portion does not count.

In practice, this means you may need to look closely at your insurance documents. Some policies clearly separate the different elements. Others bundle everything together, which makes it harder to identify the exact amount that can be deducted.

If you are unsure, it is worth contacting your bank or insurer. A quick check could help you avoid mistakes and make sure you claim what you are entitled to.

When the 2025 tax campaign begins in Spain

The timeline is already underway. The 2025 income tax campaign opened on April 8, and taxpayers can now file their returns online. As in previous years, the process runs over several weeks, with different options available depending on your situation.

For many people, the first step is to review the draft provided by the tax authorities. That is where it is worth slowing down and checking the details carefully.

Mortgage information, insurance payments and any deductions linked to your home should all be reviewed before confirming the return. Taking a bit more time at this stage can still make a difference.

A small detail that can reduce your tax bill

For most homeowners, this deduction will not lead to huge savings. But that does not mean it should be ignored.

Tax returns are built on small adjustments. One deduction on its own may seem minor, but combined with others, it can change the final outcome.

For those who bought their home before 2013 and still have a mortgage, this is one of those details that is easy to miss but worth checking.

It is also one of the few remaining benefits linked to the old rules on primary residence investment, which no longer apply to newer buyers.

That is why it still matters.

Before you submit your tax return, take a second look

If you are planning to file your return as soon as the campaign opens, it may be worth pausing for a moment. Check when you bought your home. Look at your mortgage. Review your insurance.

If everything lines up, you could be entitled to a deduction that is not immediately obvious. And if you skip that step, you may end up paying more than you need to.

In a process that many people rush through every year, this is one detail that deserves a closer look.

New data from Spain’s National Statistics Institute, the Instituto Nacional de Estadística, shows that around two in three people aged 18 to 34 are still living with their parents, highlighting the scale of the country’s housing challenge. The situation is particularly visible among those in their late twenties and early thirties, many of whom remain at home due to rising housing costs and limited purchasing power.

With the average age of leaving home now around 30, Spain remains well above the European Union average of approximately 26, according to Eurostat. Analysts point to a combination of high property prices, increasing rental costs and relatively low wages as the main barriers preventing young adults from achieving independence.

Why are young people unable to leave home in Spain?

The data points to a structural issue rather than a temporary trend. Only around 15 per cent of young people in Spain have managed to live independently, showing how limited access to housing has become. Even among those with stable jobs, many still cannot afford to live alone.

Research from institutions such as the La Caixa Foundation highlights that low salaries and precarious employment are key factors preventing young people from accessing housing. This is not a new issue, but it has intensified over time. Earlier data showed significantly lower figures, meaning the current situation represents a sharp deterioration rather than a stable pattern.

How Spain compares with the rest of Europe

Spain stands out even within the European context. Across the European Union, young people leave home at an average age of around 26 years, according to Eurostat.

In Spain, that age rises to around 30 years, one of the highest in Europe. The proportion of young adults living with their parents is also significantly higher than the European average. While around 48 per cent of young Europeans live at home, the figure in Spain has exceeded 60 per cent in recent years and continues to rise.

This places Spain closer to southern and eastern European countries such as Greece or Croatia, where similar housing pressures exist, and far from northern countries like Denmark or Sweden, where fewer than a quarter of young adults remain in the family home.

What this means for the economy and society

The impact goes far beyond housing. Delays in leaving home affect everything from career mobility to family formation. Young people are postponing major life decisions, including starting families or buying property, which has long-term consequences for economic growth and demographic trends.

There is also a growing divide between those who can rely on family support and those who cannot. For many, living at home is no longer a choice but a necessity. At the same time, the housing market itself is becoming increasingly competitive. In 2025 alone, more than 2 million people searched for housing without success, highlighting the scale of the problem.

A generation under pressure

While headlines often frame the issue in dramatic terms, the data suggests a more complex reality. This is not simply a generation unwilling to leave home, but one facing structural barriers that previous generations did not encounter at the same scale.

With housing affordability still under pressure and wages struggling to keep pace, the trend is unlikely to reverse quickly. For many young adults in Spain, independence is no longer just a milestone. It has become an increasingly difficult goal to reach.

A new economic study by Funcas (Fundación de las Cajas de Ahorros) warns that Spain’s labor market is at a tipping point, with between 1.7 and 3.5 million jobs facing significant disruption from artificial intelligence. While manual labor in construction and hospitality remains safe due to the need for physical presence, “thinking” roles in administration, marketing, and data analysis are highly exposed.

Currently, 20% of Spanish firms have integrated AI into their daily operations, a move that is transforming roles rather than deleting them entirely. For expats and local workers, the consequence is a widening wage gap: those who master AI tools are seeing productivity gains, while those in repetitive digital roles face increasing pressure on long-term career stability.

Which jobs in Spain are most exposed to artificial intelligence?

Unlike earlier waves of automation, which mainly affected factory and manual jobs, artificial intelligence is now targeting tasks that involve thinking, analysing and creating content.

Administrative roles, customer service positions, analysts, marketing professionals and even mid-level managers are among those most exposed. These jobs often involve handling data, writing reports, or processing information, all areas where artificial intelligence tools are advancing quickly.

On the other hand, roles that depend on human interaction or physical presence remain more protected in the short term. Jobs in hospitality, tourism, construction and care services are harder to automate, which is particularly relevant in Spain’s service-driven economy.

How Spain compares with other European countries

Spain’s exposure to artificial intelligence is slightly above the average of countries in the Organisation for Economic Co-operation and Development, a group of developed economies that includes most of Europe. This means a relatively large share of jobs could be affected.

However, the risk of full automation is lower than in more industrial or highly digital economies such as Germany or the Netherlands. In those countries, a greater number of roles involve repetitive technical tasks that can be automated more easily. In southern European countries like Spain, Italy and Greece, the economy relies more heavily on tourism and in-person services. This slows down full job replacement, but increases the likelihood that many roles will be partially automated rather than completely removed.

What this means for expats working in Spain

For expats, the impact will vary depending on the type of work they do. Jobs in marketing, content creation, administration and remote digital services are already being reshaped by artificial intelligence. These are common roles among international workers, particularly those working online or across multiple languages.

Meanwhile, expats working in real estate, hospitality or tourism may find their roles more stable for now, as these sectors depend on face-to-face interaction and local expertise. Even so, artificial intelligence is beginning to enhance these jobs rather than replace them, meaning workers are expected to become more efficient and adaptable.

A shift in skills, not just job losses

One of the key insights from current research is that artificial intelligence is not simply eliminating jobs, but changing the skills required to perform them. Across Europe, studies suggest that up to 60 per cent of roles could see some of their tasks automated. This creates a divide between workers who adapt to new technologies and those who struggle to keep up.

In Spain, around one in five companies is already using artificial intelligence in some capacity, and that number is increasing quickly. As adoption grows, so does the demand for workers who can combine technical knowledge with human skills such as communication, creativity and decision-making.

What workers in Spain should do now

The labour market is entering a period of transition, and preparation will be critical. Workers who begin developing digital skills and learning how to use artificial intelligence tools are more likely to benefit from the changes ahead. This does not require advanced technical training, but a willingness to adapt and integrate new technologies into everyday work.

At the same time, roles that rely on human judgement, empathy and interpersonal skills are expected to become more valuable. Artificial intelligence is unlikely to cause an immediate collapse in employment in Spain. However, gradual changes over the next decade could reshape the workforce in a way that rewards adaptability and leaves others behind.