Regional Deduction Rules in Extremadura - Renta 2023

✓ verified by Cristina Gómez Torrens Senior International Accountant

Welcome to the Extremadura Regional Deductions guide for the current fiscal year.  Extremadura offers a range of tax advantages that can enhance your income tax refund. From rental deductions, and family-related benefits to specific incentives for young entrepreneurs and investments in newly created entities, you'll find a variety of tax reliefs tailored to support different aspects of life and economic activity in Extremadura. By understanding and utilizing these deductions, you can significantly reduce your tax liabilities and optimize your financial planning. Dive into the specifics and learn how you can benefit today.

What are the regional deductions in Extremadura?

The tax benefits in Extremadura 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, Extremadura 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. 

Rental

If you have a lease for your main residence, you can deduct 30% of the amounts paid, with a limit of €1,000 per year, provided you are under 36 years old, part of a large family, or have a disability greater than 65%.

School Supplies

The deduction for the purchase of school supplies for descendants is €15.

Mortgage Interest for Young Homebuyers

If you have paid interest on mortgage loans for acquiring your main residence, you can deduct 25% of these interests, up to a limit of €1,000 per year, provided you are under 36 years old.

Dependent Work

If your work income does not exceed €12,000 and other incomes do not exceed €300, you will have a deduction of €75.

Multiple Births

If you have had multiple children in the same year, you will have a deduction of €300 for each child born.

Foster Care of Minors

If you have fostered a minor who has lived with you for more than 183 days during the year, you will receive a deduction of €250. If the minor has lived with you for more than 90 days but less than 183 days, the deduction amount is €125.

Relatives with Disabilities

If you live with a family member with a disability, you will receive a deduction of €150, which increases to €220 if the right to dependency aid has been recognized but not received by December 31.

Childcare Expenses up to 14 Years Old

If you incur expenses for the care of your children up to 14 years old, you can deduct 10% of the amounts paid to a household employee or authorized centers.

Widowed Taxpayers

If you have become widowed, you can deduct €100 in the year it occurs. If you also have one or more descendants, the amount will be €200, subject to the base limits that vary depending on the population of the municipality where you reside.

Acquisition or Rehabilitation of Main Residence for Youth and Victims of Terrorism

You can deduct 3% of the amounts spent on acquiring or rehabilitating a property that will constitute your first main residence. The deduction is 5% if the population of the municipality is less than 3,000 inhabitants and the acquisition was made after January 1, 2015.

Acquisition of Shares and Participations

You can deduct 20% of the amount invested in any commercial company such as S.R.L., S.A., S.A.L., S.R.L.L., and S.C., with a maximum of €4,000 per year.

Acquisition of Housing in Rural Areas

If you have purchased a main residence in a rural area, you can deduct 10% of the amounts spent on the acquisition, with an annual limit of €9,040. The total maximum base will be the lesser of €180,000 and the purchase price.

Residence in Municipalities with Less Than 3,000 Inhabitants

You will have a deduction corresponding to 15% of the full regional tax quota.

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

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