These are the benefits of leasing when filing your tax return

A. Noguerol

Viernes, 4 de abril 2025, 14:10

Vehicle leasing in Spain has seen significant growth in recent years, becoming an increasingly popular alternative to traditional car purchases.

In the first quarter of 2025, registrations through this system amounted to 82,939 units, a 2.87% increase compared to the first quarter of 2024, when 80,623 vehicles were registered.

The share of leasing in total registrations in the first quarter of 2025 is 25.21%, whereas in the first quarter of 2024, it was 27.72%. The segment where leasing is most represented is in derivatives, vans, and pick-ups, where the sector holds 28.45% of the market, according to the Spanish Leasing Association (AER).

In March, 35,929 cars were registered in the leasing sector, compared to 34,357 in March 2024, marking a 4.58% increase. Meanwhile, the total market increased by 21.12%, with 134,884 registrations in the month.

Leasing is a long-term rental contract that allows you to enjoy a new vehicle in exchange for a fixed monthly fee. This fee generally includes services such as maintenance and repairs, comprehensive insurance, roadside assistance, taxes, or tyre changes.

Leasing for individuals is aimed at those who want to enjoy a new car without the worries of ownership, while leasing for freelancers and companies allows for efficient fleet management with tax advantages.

During the tax season, leasing also offers a series of benefits, as explained by Northgate. Firstly, and most importantly, Northgate reminds us that to claim leasing deductions for freelancers and companies, it must be justified that the vehicle is primarily used for professional purposes. In this regard, the Tax Agency reserves the right to verify this, and the requirement is significant, making it essential to prove the declared use of the vehicle. Some indicators to determine whether vehicles are used for professional or personal purposes include whether the vehicle is marked with the company's logo or name, if it is an industrial vehicle type, or if it is parked at the workplace when the workday ends.

1. VAT deduction in leasing

Leasing allows professionals to reduce their tax burden by deducting up to 100% of the VAT on monthly rental fees. In the specific case of freelancers, it is possible to deduct VAT on leasing from 50% to 100%, depending on the vehicle's use, whether it is entirely dedicated to professional activity or mixed use.

2. Deduction of expenses in personal income tax or corporate tax

Monthly leasing fees are considered an expense that can be fully deducted in Personal Income Tax (IRPF) for freelancers or in Corporate Tax (IS) for companies, providing significant tax relief for businesses of any size.

3. No need for amortisation

By not acquiring a vehicle as property, there is no need to register the asset as fixed. Thus, leasing allows the expense to be directly charged without the need for amortisation.

4. Lower taxation thanks to deductible expenses

Leasing allows for better tax adjustment of the business, reducing the taxable profit and, therefore, the base on which taxes are calculated. This translates into a reduction in the tax impact.

5. Financial predictability and tax control

Another advantage of leasing for companies or freelancers is that, with fixed monthly fees, it facilitates fiscal and financial planning without surprises.

6. Improvement of the annual fiscal closure

Choosing the leasing option allows all associated company expenses to be recorded in the same fiscal year, helping to adjust the result and optimise the declaration.

Other tax deductions for freelancers

In addition to these leasing-specific tax benefits, freelancers can not only deduct the service itself but also have deductions associated with work-related travel. For example, the Tax Agency establishes deductions for other expenses such as fuel consumption, up to 50%, or parking fees, provided these expenses are related to professional activity and receipts are presented to prove these payments.

Those who have opted for the incorporation of electric vehicles and have undertaken the installation of charging points can also access the depreciation of investments made in materials, equipment, installation, and necessary labour, excluding amounts subsidised by public aid.

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