Regional Deduction Rules in La Rioja - Renta 2023

✓ verified by Cristina Gómez Torrens Senior International Accountant

Welcome to the La Rioja Regional Deductions guide for the current fiscal year.  La Rioja 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 La Rioja. 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  La Rioja?

The tax benefits in  La Rioja 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,  La Rioja 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. 

Investment in Main Residence for Young People

You can deduct 3% of the amounts spent on the acquisition, construction, expansion, or rehabilitation of your main residence, with a cap of €300, provided you are under 36 years old.

Rental

If you have a rental contract for your main residence and are under 36 years old, you can deduct 10% of the amounts paid, up to €300 per contract.

Birth

Depending on whether the child is your first or subsequent child, the deduction can be €600, €750, or €900 per child born in 2023.

Utility Costs for Emancipated Youth Under 36

You can deduct 15% of the annual utility costs if the contract is in your name and has been active for more than 6 months as of December 31.

Electric Vehicle Purchase

If you have purchased a new electric vehicle not used for professional activities, you can deduct 15% of the costs, up to a maximum of €50,000.

Acquisition, Construction, or Rehabilitation of Main Residence in Small Municipalities

You can deduct 5% of the amounts spent on your main residence, with an annual cap of €452, for properties purchased after January 1, 2017.

Nursery Expenses

You can deduct 20% of nursery costs for children up to 3 years old, or 30% if you reside in a small municipality, up to €600 per child annually.

Foster Care of Minors

If you are fostering a minor and they have lived with you for more than 183 days within the year, you can deduct €300. If they lived with you between 90 and 183 days, the deduction is €150.

Acquisition of Shares and Participations in Newly Created Entities

If you've acquired shares or participations through the constitution or capital increase of an S.A, S.L, S.Lab., and/or Coop., you can deduct 30% of the investments, up to a maximum of €6,000 annually. Your participation cannot exceed 40% directly or indirectly.

Acquisition of Shares and Participations in Entities Listed on the Stock Exchange

If you've acquired shares or participations through a capital increase of entities listed on the stock exchange, you can deduct 15% of the investments, up to a maximum of €4,000 annually. Your participation cannot exceed 10% directly or indirectly.

Donations to Entities Promoting R&D and Innovation

You can deduct 25% of the amounts donated to research centers affiliated with Galician universities and non-profit entities, with a limit of 10% of the full regional tax quota.

Investment in Heating and/or Domestic Hot Water Systems Using Renewable Energy

You can deduct 5% of the amounts paid, up to a limit of €280. The installation must be properly registered.

Children Under 3 in Small Municipalities

If you reside or move to a small municipality and maintain residence for 3 consecutive years, you can deduct €100 for each child under 3 years old.

Internet Access for Emancipated Youth

If you are under 36 and have contracted internet service that has been active for more than 6 months as of December 31, you can deduct 30% of your annual expenses. This deduction does not apply if the internet is linked to an economic activity.

Non-assisted Pedal Bicycles

You can deduct 15% of the cost of purchasing unassisted pedal bicycles, up to €50 per bicycle, with a limit of 2 bicycles per family unit.

Rehabilitation of Main Residence

If you are under 36 years old, you can deduct 5% of the amounts invested in rehabilitation, increasing to 7% if your taxable bases are no more than €18,030 individually or €30,050 jointly. If you don't meet these conditions, you can still deduct 2% of the invested amounts, but only if you paid the amounts before January 1, 2013. The annual cap for this deduction is €9,040.

Acquisition or Rehabilitation of Second Residence in Rural Areas

You can deduct 8% of the amounts spent on a single second residence, with an annual cap of €450.76, provided the residence was purchased before January 1, 2013.

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

Adaptation of Housing for Disabled Individuals

If you have a disability and have undertaken adaptation works on your residence, you can deduct 15% of the amounts spent, provided the residence was purchased before January 1, 2013.

Donations for Promotion of Patronage Activities

You can deduct 15% of the amounts donated towards the promotion and stimulus of patronage activities, with a combined annual limit of €500.

Donations for Research, Conservation, Restoration, Rehabilitation, Dissemination, Exhibition, and Acquisition of Cultural Heritage of La Rioja

You can deduct 15% of the amounts donated, with a combined annual limit of €500.

Donations to Cultural Companies or Donations of Cultural Goods by Authors and Heirs

You can deduct 20% of the amounts donated, with a combined annual limit of €500.

Funds for Research, Conservation, Restoration, Rehabilitation, or Consolidation of Cultural Heritage

You can deduct 15% of the amounts dedicated to these purposes, with a maximum deduction of €500 per taxpayer per year.

Promotion of Physical Exercise and Sports

You can deduct 30% of expenses on gym memberships and sports facilities, sports licensing fees, with a limit of €300 per year.

Mitigation of Mortgage Interest Rate Increases

You can deduct 15% of the amounts allocated to the payment of interest, with a maximum annual base of €5,000.

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.