Foral IRPF versus state IRPF

The foral IRPF is an agreed tax: each historical territory sets its own bands, minimum allowances and deductions.

That is why the same income can be taxed differently in Bizkaia, Gipuzkoa or Araba, and always according to the taxpayer’s registered tax address, not according to where they work.

Deadlines and the self-assessment proposal

Each Provincial Council opens its annual return campaign with its own calendar, usually in spring. Many taxpayers receive a self-assessment proposal (the foral equivalent of the draft return) which they can confirm, amend or reject.

Confirming it without reviewing it is the most common mistake: it may leave out deductions for family circumstances, for housing or for EPSV contributions.

Deductions specific to the Basque Country

  • Deduction for the main residence (purchase and rental), with foral particularities.
  • Family deductions: dependent descendants, ascendants and people with disabilities.
  • Contributions to EPSV (Entidades de Previsión Social Voluntaria), an arrangement characteristic of the Basque Country.
  • Deductions for donations and for participating in the financing of newly created companies.

Self-employed workers and business income

Self-employed workers under the direct assessment method include the income from their activity in their foral IRPF, with the possibility of deducting expenses allocated to the activity and, in Bizkaia, with the information already fed through the LROE of Batuz.

Good planning between IRPF and, where appropriate, the move to a company structure can mean significant savings.

Your annual return, with Grupo Asegi

We review your self-assessment proposal, apply every foral deduction you are entitled to and plan your annual return with a full-year view.

In Bilbao, Vitoria-Gasteiz and Donostia, with command of all three sets of foral rules.

Frequently asked questions

Is the annual tax return in the Basque Country the same as in the rest of Spain?
No. It is governed by the foral IRPF of Bizkaia, Gipuzkoa or Araba, with its own bands, deductions and calendar.
Should I simply confirm the self-assessment proposal?
That is not advisable. It may not include all your deductions, so review it before confirming it.
What is an EPSV and why does it matter in the annual return?
It is the Basque Country's voluntary social welfare arrangement; contributions can reduce the foral IRPF base within certain limits.
Which tax authority applies to me?
The one for the territory of your registered tax address: Bizkaia, Gipuzkoa or Araba.

General information only; it does not replace professional advice. Foral legislation changes frequently — check the date it was last updated.