Regional Deduction Rules in Murcia - Renta 2023

✓ verified by Cristina Gómez Torrens Senior International Accountant

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

The tax benefits in Murcia 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, Murcia 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 5% of the amounts spent on acquiring, constructing, rehabilitating, or expanding your main residence, with a maximum deduction of €300.

Nursery Expenses

You can deduct 20% of nursery costs, up to €1,000 per child.

Birth

Deductions of €100, €200, or €300 per child are available depending on whether the child is your first or subsequent offspring.

School Supplies

A deduction of €120 per descendant for the purchase of school supplies.

Rental

If you have a rental contract for your main residence, you can deduct 10% of the amounts paid, up to a limit of €300 per contract.

Working Women

This deduction is specifically for women who are employed or self-employed and have children under 18 years of age or dependent persons. The amount of the deduction varies depending on the number of dependents.

Donations for the Protection of Cultural Heritage and Promotion of Cultural and Sports Activities

You can deduct 50% of monetary donations aimed at protecting Murcia's cultural heritage and promoting cultural and sports activities.

Donations of Goods Listed in the Cultural Heritage Inventory

You can deduct 15% of the market value of pure and simple donations of goods.

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.

Donations for Biomedical Research

You can deduct 50% of the amounts donated to the Community of Murcia or nonprofit entities registered in Murcia's registry.

Taxpayers with Disabilities

If you have a recognized disability of 33% or more, you can deduct €120.

Reconciliation

If you have a child under 12 years old and employ someone to care for them, you can deduct 20% of the amount paid, up to a maximum of €400.

Unpaid Foster Care of Individuals Over 65 or with Disabilities

You can deduct €600 for each person over 65 or with a disability of 33% or more fostered in an unpaid arrangement, provided they live with you for more than 183 days.

Acquisition of Stock Market Shares

You can deduct 20% of investments made in the capital increases of publicly traded companies, with an annual limit of €10,000. Your participation cannot exceed 10%.

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Acquisition of Shares and Participations in Newly Created Entities

You can deduct 20% of the amounts invested in the formation or capital increase of S.A., S.L., S.Lab., and/or Cooperatives, up to €4,000 annually. Your participation cannot exceed 40%.

Investment in Renewable Energy Resource Installations

You can deduct 10% of the investment in installations of renewable energy sources such as solar thermal, photovoltaic, and wind energy, with a limit of €1,000 annually. The installation must be in your main residence or in a rental property, provided the latter is not part of your economic activity.

Investments in Domestic Water-Saving Devices

You can deduct 20% of investments in water-saving devices, with an annual maximum deduction of €60.

Acquisition of New Main Residence or Expansion of Current Main Residence for Large Families

If you are part of a large family, you can deduct 10% of the amounts paid for acquiring or rehabilitating your main residence, with a maximum deduction 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. 

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