Regional Deduction Rules in Valencia

✓ verified by Elena Garro Especialista en Contabilidad e Impuestos

Welcome to the Valencian Community Tax Deductions Guide for the current fiscal year! This guide is designed to help residents of Valencia 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.

From significant deductions for family-related expenses such as childbirth and childcare, to incentives for renting or purchasing primary residences, especially for the young or those with disabilities, these deductions aim to support a diverse range of residents. Furthermore, contributions toward cultural preservation, environmental conservation, and local enterprise development also offer opportunities for tax savings.

We'll explore how you can leverage these deductions to potentially reduce your tax liabilities and support your financial well-being in the Valencian Community. Whether you're enhancing your home, supporting your family, or investing in your future, understanding these opportunities is the first step towards maximizing your benefits.

What are the regional deductions in Valencia?

The tax benefits in Valencia 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, Valencia 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

You are entitled to a deduction of €300 per child born, which will vary if it is a multiple birth, or if the descendant has a disability.

Rent

If you have a rental contract for your primary residence, you can deduct 20% of the amounts paid up to a limit of €800, which will increase depending on whether you are under 35 years old, have a disability, etc.

Purchase of primary residence for young people

You can deduct 5% of the amounts paid during the year for the first purchase of a primary residence, excluding interest, as long as the taxpayer is under 35 years old.

School supplies

You can deduct €110 per child for amounts spent on school supplies if you are unemployed or registered as a job seeker.

Work-life balance

This deduction is intended exclusively for women and entitles you to €460 per child as long as you are engaged in self-employed or employed activity.

Large family

If you are the holder of a large family, you will have a deduction of €330 if it is of general category and €660 if it is of special category.

Custody of children under 3 years

You can deduct 15% of the amounts paid for childcare in nurseries and early childhood education centers for your descendants under 3 years old. The deduction limit per child is €297, which will vary depending on the sums of your bases.

For taxpayers with disabilities

If you have a disability equal to or greater than 33% and are over 65 years old, you will have a deduction of €197.

Ancestors over 75 years old or 65 with a disability

If you live with an ancestor who is 75 years old or has a disability equal to or greater than 33% at 65 years old, you will have a deduction of €197 per ancestor. Ancestors cannot have annual incomes over €8,000.

Permanent contract for household employees

If you have formalized an indefinite contract with your domestic worker for the care of your descendants under 5 years old and/or ancestors over 65 years old with a disability or 75 years old, you can deduct 50% of the Social Security contributions made.

Rent for the landlord

If you have a property that you have rented out, you can deduct 5% of the income if the monthly rent does not exceed the reference price of private rentals in Valencia. The maximum annual base will be €3,300.

Acquisition of housing by taxpayers with disabilities

If you have a disability greater than 33%, you can deduct 5% of the amounts paid in interest.

Acquisition of first habitual residence under 35 years

You can deduct 5% of the amounts invested.

By leasing or payment for the transfer of use of the primary residence

You can deduct 20% with a limit of €800, 25% with a limit of €950 if you are under 35 years old, have a disability equal to or greater than 33%, or are considered a victim of gender violence, and 30% with a limit of €1,100 if you meet more than two of the previous conditions.

For amounts allocated to the acquisition or rehabilitation of a primary residence, coming from public aid

If you have received public aid from the Generalitat for the acquisition or rehabilitation of your residence, you will have a deduction of €112.

Rent due to work in a different municipality

If you have rented a house in a municipality different from where you were living due to self-employed or employed activity, you will have a deduction of 10% of the amounts paid. The maximum amount of the deduction will be €224.

Investments in self-consumption of electricity installations

Or for the use of certain renewable energy sources in the homes of the Valencian Community, as well as for the share of participation in investments in collective facilities where the homes are located

You can deduct 40% of the amounts invested in your primary residence or 20% if it is a second residence with a maximum deduction base of €8,800.

Donations with an ecological purpose

of Valencian cultural goods, for the promotion of the Valencian Language, of use or loans with cultural purposes, for the conservation of the Valencian cultural heritage: If you have made donations, you can deduct 20% of the amount donated up to €150. On the excess, the deduction will be 25%. These donations cannot exceed 30% of the taxable base.

Conservation of Valencian cultural goods

If you are the holder of a good with the qualification of Valencian Cultural Heritage and have incurred expenses for its conservation, repair, and restoration, you can deduct 20% of the amounts paid up to €150, and on the excess 25%.

Taxpayers with two or more descendants

If you have two or more descendants, you can deduct 10% of the total regional quota.

Increase in foreign financing costs for habitual residence

If you have taken out a loan for your habitual residence, you can deduct 50% of the positive difference between what was paid in the previous year and its predecessor, with an annual limit of €100.

Improvement works for quality, sustainability, and accessibility of primary residence

If you have carried out works, you can deduct up to 20% of the amounts invested. If you have a disability equal to or greater than 33%, you can always deduct 50% of what was invested. If you had carried out the house works between January 1, 2014, and December 31, 2015, the percentage to deduct will be 10% in 2014 and 25% in 2025 with a maximum annual base of €5,500.

Cultural subscriptions

If you have acquired cultural subscriptions, you can deduct 21% of the amounts paid with a maximum deduction base of €165 and provided that your incomes are less than €50,000.

By acquisition of new vehicles

If you have acquired bicycles, including electric ones, electrification kits for bicycles, or personal mobility vehicles, you can deduct 10% of the amounts invested.

By investment in the acquisition of shares and social participations of new entities or of recent creation:

If you have acquired shares or participations for the constitution or capital increase of commercial companies, you can deduct 30% of the amounts invested with a maximum annual limit of €6,600. You will have an additional increase of 15% in certain circumstances with a limit of €9,900 if they are small and medium-sized innovative companies and have their domicile in a municipality with a population of less than 300 inhabitants.

Residence in a municipality at risk of depopulation

If you reside in a municipality at risk of depopulation, with a population of less than 300 inhabitants, you will have a deduction of €330 which will increase for each descendant living with you.

Expenses on fertility treatments in authorized centers or clinics

If you have incurred expenses for fertility treatments, you will have a deduction of €100, if you are a woman aged between 40 and 45.

Health expenses

You can deduct up to €100 of the amounts paid for the treatment and care of people with rare diseases and Alzheimer's. 30% of the expenses in dental health up to a maximum of €150, mental health up to a maximum of €150, and in expenses for glasses and their prescription up to €100.

Sports and healthy activities expenses

You can deduct 30% with a maximum limit of €150 of the amounts paid for the practice of sports and healthy activities.

Donations for research and to alleviate Covid expenses

You can deduct 20% on the first €150 donated and 25% on the excess.

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