Regional Deduction Rules in Castilla y León - Renta 2023

✓ verified by Elena Garro Especialista en Contabilidad e Impuestos

Welcome to the Castilla y León Community Tax Deductions Guide for the current fiscal year! This guide is designed to help residents of Castilla y León 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 y León?

The tax benefits in Castilla y León 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 y León 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. 

Birth

If you had a child during 2023, you can deduct €1,010 if it's your first child. The deduction amount increases for the second, third, or subsequent children.

Rental

If you are under 36 years old and have a rental agreement for your main residence, you can deduct 20% of the amounts paid, up to a maximum of €459 per year.

Large Family

If you are the head of a large family, you can deduct €600, or €1,500 if you have four children, and €2,500 if you have five.

Multiple Births

If you had a multiple birth, you are entitled to 50% of the birth deduction for two children. For three or more children, the amount increases to 100% of the birth deduction. This applies to multiple births occurring in the same year.

Child Care

If you have dependents under 4 years old, you can deduct 30% of the amounts paid to a household employee, up to a maximum of €322. If you incurred childcare or schooling expenses, you can deduct 100% up to €1,320.

Adoption Expenses

If you incurred expenses related to adoption, you are entitled to €784 per adoption. If the adoption is international, the amount is €3,625.

Social Security Contributions for Household Employees

You can deduct 15% of the amounts paid for social security contributions, up to €300, provided you have a dependent under 4 years old.

Taxpayers with Disabilities:

If you have a disability under 65% and are under 65 years old, you get a deduction of €300.

If you are 65 or older with a disability equal to or greater than 33%, you get a deduction of €300.

If you are 65 or older with a disability over 65%, you get a deduction of €656.

Acquisition of Housing by Youth in Rural Areas

If you are under 36, you can deduct 15% of the amounts spent on acquiring your first main residence, up to an annual base of €9,040, for houses purchased for less than €150,000 after January 1, 2016. For purchases made between January 1, 2005, and January 1, 2016, there is no price limit.

Environmental and Disability Adaptation Investments in Main Residence

If you have carried out rehabilitation works, you can deduct 15% of the costs, up to a maximum of €20,000.

Investment in Rehabilitation of Rental Housing in Rural Cores

You can deduct 15% of the amounts invested in the rehabilitation of housing priced below €150,000 and with a monthly rent not exceeding €300.

Promotion of Entrepreneurship

If you have acquired shares during the formation of companies or capital increases, you can deduct 20% of the amounts invested, with a maximum deduction of €10,000.

Investments and Donations to Foundations for the Recovery of Historical, Cultural, and Natural Heritage

You can deduct 15% of the amounts invested as long as your taxable bases are below €18,900 for individual taxation and €31,500 for joint taxation. The deduction base limit cannot exceed 10% of the taxable base.

Donations to R&D and Innovation

You can deduct 15% of the amounts donated to public universities in CyL and to foundations and other entities whose main activity is business R&D and innovation. The deduction base limit is 10% of the taxable base.

Promotion of Sustainable Mobility

You can deduct 15% of the amounts spent on purchasing a new pure electric vehicle, an electric vehicle with extended range, or a plug-in hybrid with more than 40km of autonomy, provided the price does not exceed €40,000. The maximum amount of this deduction is €4,000 per electric vehicle.

Acquisition of New Construction Housing

If you have purchased a newly constructed home, you can deduct 7.5% of the amounts invested, with an annual deduction base limit of €9,040.

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

General Deductions

Check out the general deductions rules for Spain here → 

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.