Regional Deduction Rules in Castilla-La Mancha - Renta 2023

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on abril 29, 2024 3 minute read

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Welcome to the Castilla-La Mancha Community Tax Deductions Guide for the current fiscal year! This guide is designed to help residents of Castilla-La Mancha understand and capitalize on the various tax deductions available, ensuring they can fully benefit from regional tax policies. Whether you're a new parent, a renter, a homeowner making improvements, or an investor in renewable energies or local businesses, there's likely a deduction tailored to your circumstances.

What are the regional deductions in Castilla-La Mancha?

The tax benefits in Castilla-La Mancha known as regional deductions offer taxpayers a delightful discount on their taxes. These deductions are specifically tailored to the Personal Income Tax system of this autonomy. While the overall income tax return process is conducted nationwide in Spain, Castilla-La Mancha provides its residents with unique deductions. This is because the revenue from income taxes is divided between the state and individual communities. To qualify for these appealing deductions, residency in the specified territory during the previous year and meeting specific criteria are essential. 

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Rental

If you have a rental contract in Castilla-La Mancha, you can deduct 15% of the amounts spent on rent, up to a limit of €450.

Birth

If you had children in 2023, you can deduct €100 for one child, €500 for two children, or €900 for three or more children.

Nursery Expenses

You can deduct 30% of the expenses incurred for childcare for children under 3 years old, with an annual deduction limit of €500, and €250 in the year the child turns 3.

Large Family

If you are the head of a large family, you can deduct €200 for a general category or €400 for a special category. If any child has a disability greater than 65%, the deduction is €300 for a general category and €900 for a special category.

Single Parent Family

If you are the head of a single parent family, you can deduct €200.

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Educational Expenses

You can deduct 100% of the expense on textbooks for your children and 15% of the expense on extracurricular activities, with a maximum limit of €200 based on the sum of your taxable bases.

Disability

If you have a disability greater than 65%, you are entitled to a deduction of €300.

Disability of Descendants or Ancestors

If you have a descendant or ancestor with a disability greater than 65%, you are entitled to a deduction of €300.

Elderly Over 75 Years

If you are 75 years or older, you are entitled to a deduction of €150.

Care for Elders Over 75 Years

If you live with an ancestor who is 75 years or older, you are entitled to a deduction of €150.

Unpaid Foster Care of Minors

If you have taken in a minor under an unpaid foster care regime, you can deduct €500, or €600 if it involves the second or subsequent minors.

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Unpaid Foster Care of Elders Over 65 or with Disability

If you have taken in an elder over 65 or with a disability under an unpaid foster care regime, you can deduct €600.

Donations

If you have made donations to entities that fight poverty, care for people with disabilities, combat social exclusion, support R&D and innovation, or donate goods of cultural interest from Castilla-La Mancha, you can deduct 15% of the donated amounts.

Financing Costs for the Acquisition of Main Residence for Under 40s

If you have incurred foreign financing costs, you can deduct 100% of the amounts paid, within certain limits.

Residence in Rural Areas

If you live in an area classified as rural depending on whether the population is below 2,000 inhabitants or above, you can deduct 20% or 15% of the full regional tax quota.

 

 

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Acquisition of Housing in Rural Areas

If you have purchased a main residence in a rural area, you can deduct 15% of the amounts spent on the acquisition, with an annual limit of €12,000. The total maximum base will be the lesser of €180,000 and the purchase price.

Relocation of Main Residence

If you have relocated your main residence to Castilla-La Mancha, you can deduct €500 in the year you move and the following year.

Investment in Social Economy Entities

If you have invested with the intention of becoming a partner in social economy entities, you can deduct 20% of these amounts, with an annual limit of €4,000. The acquired participation cannot exceed 40% directly or indirectly.

Acquisition of Shares in the Formation of Companies or Capital Increases

If you have acquired shares as a result of the formation of companies or capital increases, you can deduct 20% of these amounts, with an annual limit of €4,000. The acquired participation cannot exceed 40% directly or indirectly.

Discover how Xolo can simplify your tax planning and maximize your deductions in Castilla-La Mancha. Explore Xolo today and take the first step towards smarter financial management!

 

General Deductions

Check out the general deductions rules for Spain here → 

 

 

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Take the hassle out of tax season with Xolo

At this point, you have a couple of options: 

  1. Memorize all the information we've provided and file your tax return on your own, hoping everything goes smoothly. 
  2. Gather your invoices for all of your deductible expenses as a freelancer, upload them to Xolo, and let our team of experts handle your VAT and income tax returns like the pros we are. 

Sign up to Xolo and let us help take the hassle out of tax season.

 

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