Regional Deduction Rules in Catalonia

✓ verified by Elena Garro Especialista en Contabilidad e Impuestos

Welcome to your guide on Catalonia's tax deductions for the year 2023! This comprehensive overview will help you understand the various deductions available to Catalonian residents across different life events and financial activities. Whether you’re dealing with family changes, educational investments, residential updates, or supporting local initiatives, these deductions can provide significant financial relief.

From deductions for new births and rental payments for younger or disadvantaged residents, to specific benefits for those funding Catalan language promotion or investing as an angel investor, each category is designed to offer support where it's most impactful. Additionally, unique provisions cater to widowed taxpayers and those contributing to research and development or environmental conservation, ensuring a wide range of situations are covered.

By leveraging these opportunities, you can reduce your tax burden while contributing positively to societal and economic goals within Catalonia. Dive into the details to find out how you can benefit from these tax incentives this year.

What are the regional deductions in Catalonia?

The tax benefits in Catalonia 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, Catalonia 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 have had children during 2023, you can deduct €150.

Rent

If you have a lease contract for your habitual residence and you are under 32 years old, have been unemployed for more than 183 days, or have a disability degree higher than 65%, you can apply a deduction of 10% of the amounts paid, with an annual limit of €300.

Obligation due to more than one payer

This deduction applies to those taxpayers who, due to having more than one payer, are required to file a tax return.

Payment of interests on loans for master's and doctoral studies

 If you have paid interest on loans for master's and doctoral studies, you can deduct the amount of interest if the loans are granted through the University Aid and Research Management Agency for financing master's and doctoral studies.

Widowed taxpayers

If you became widowed during 2021, 2022, or 2023, you can deduct €150 in the year it occurs and the following two years. If you also have one or more descendants, the amount will be €300.

Donations to entities promoting the use of the Catalan language

You can deduct 15% of the amounts donated to these entities.

Donations to entities promoting R&D&I

You can deduct 30% of the amounts donated to university institutes and other research centers affiliated with Catalan universities and other research centers promoted by the Generalitat.

Rehabilitation of habitual residence

If you have rehabilitated your habitual residence, you can deduct 1.5% of the amounts invested, with a maximum annual limit of €9,040 for deduction base.

Donations to certain environmental, natural heritage conservation, and land stewardship entities

You can deduct 15% of the amounts donated, with a limit of 5% of the taxable base.

Investment by angel investor for the acquisition of shares or participations

 If you have acquired shares or participations through the establishment or increase of share capital of commercial companies, you can deduct 40% of the invested amounts, with a maximum annual limit of €12,000. If these entities are owned by universities or research centers, the deduction increases to 50% with an annual limit of €12,000. In no case can your participation directly or indirectly exceed 35%.

Discover how Xolo can simplify your tax planning and maximize your deductions in Catalonia. 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.