Regional Deduction Rules in Valencia

✓ verified by Elena Garro Accounting and Tax Specialist

Welcome to the Valencian Community Tax Deductions Guide for 2026! 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.

Birth or adoption

You are entitled to a deduction of:

• €600 for one child
• €750 for the second one
• €900 for the third or more children

Additionally, if the child has a disability (permanent physical disability of 65% or more, or permanent mental/intellectual disability of 33% or more), an extra €246 deduction can be applied. Or if the child also has at least one sibling with a permanent physical disability of 65% or more, or permanent mental/intellectual disability of 33% or more, an additional €303 deduction may apply.

In the case of a multiple birth, or two or more adoptions finalized on the same date within the tax period, an additional €246 deduction may apply. 

If the taxpayer passed away before June 1, 2025, a deduction of €300 per child born may be applied. Additionally, if the child has a disability (physical disability of 65% or more, or mental/intellectual disability of 33% or more), an extra €246 deduction can be applied. Or if the child with a disability also has at least one sibling with a physical disability of 65% or more, or mental/intellectual disability of 33% or more, an additional €303 deduction may apply.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

School supplies

You can deduct €110 per child for amounts spent on school supplies if you are unemployed or registered as a job seeker, which must be paid using non-cash methods.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

Work-life balance

This deduction is intended exclusively for women and entitles you to €460 per child between 3 and 5 years old, as long as you are engaged in self-employed or employed activity, which will vary depending on the sums of your bases.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

Large or single-parent family

You will have a deduction of €330 if it is of general category and €660 if it is of special category, which will vary depending on the sums of your bases.

For large or single-parent families under the general category, the sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

For large or single-parent families under the special category, the sum of the taxpayer’s general taxable base and savings taxable base must not exceed €35,000 for individual tax returns, and €58,000 for joint tax returns.

Custody of children under 3 

You can deduct 15% of the amounts paid using non-cash methods for childcare in nurseries and early childhood education centers for your descendants under 3 years old, as long as you are engaged in self-employed or employed activity. The deduction limit per child is €297, which will vary depending on the sums of your bases.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

For taxpayers with disabilities

If you have a disability equal to or greater than 33% and are 65 years old or older, you will have a deduction of €197, which will vary depending on the sums of your bases.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

Ancestors over 75 years old or 65 with a disability

If you live with a family ancestor who is 75 years old or has a permanent disability equal to or greater than 33% at 65 years old, you will have a deduction of €197 per ancestor, which will vary depending on the sums of your bases. Ancestors cannot have annual incomes over €8,000, or €1,800 if the ancestor doesn’t file Personal Income Tax return.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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, as long as you are engaged in self-employed or employed activity. This amount will vary depending on the sums of your bases, and on your family situation.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

Rent (landlord deduction)

If you have a property that you have rented out within the tax period, you can deduct 5% of the income if the monthly rent does not exceed the reference price of private rentals in Valencia. The security deposit must be deposited in favor of the Generalitat before the end of the tax period. The maximum annual base will be €3,300.

Acquisition of main residence

Two deductions:

• For taxpayers with disabilities:
  If you have a permanent mental/intellectual disability greater than 33%, or a physical disability equal to or greater than 65%, you can deduct 5% of the amounts paid in interest.
  The exact amount you can deduct may vary depending on the total of your taxable bases, and the sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.
  
  
• For taxpayers under 35 years old:
  You can deduct 5% of the amounts invested during the tax year, as long as they’ve been paid using non-cash methods, excluding interest amounts.
  The exact amount you can deduct may vary depending on the total of your taxable bases, and the residence must be your first habitual residence purchase. 
  The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.
  
  

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, or 30% with a limit of €1,100 if you meet more than two of the previous conditions.

The lease payments must be in respect of the rent for the taxpayer's primary residence during the tax period. The contract date must be after April 23, 1998, and its duration must be equal to or greater than one year. Neither the taxpayer nor any members of their family unit may own another property located less than 50 km from the rented dwelling.

In the case of payments for the 'assignment of use' (cesión en uso) of the primary residence, the portion corresponding to this concept must appear separately on the receipt issued by the owner entity.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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, or the amount resulting from applying the average regional general tax rate to the total amount of the public aid.

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 amount paid using non-cash methods. The maximum amount of the deduction will be €224.

The rented property must be located more than 50 km from the previous habitual residence.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

Investments in self-consumption of electricity installations

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.

You’ll need to keep all supporting documents for the expenses, as well as proof of payment, for at least four years after applying the deduction.

The deduction base includes payments made towards the installment cost, but not interest, insurance, or maintenance fees. Also, payments must be made using non-cash methods.

Donations 

Several different deductions:

• Donations with an ecological purpose:
  If you have made non-cash donations, you can deduct 20% of the amount donated up to €€250, or €150 for taxpayers who passed away before June 1st, 2025, of the autonomic tax quote.. On the excess, the deduction will be 25%. 
  
  
• Donations of assets forming part of the Valencian Cultural Heritage:
  

  For non-cash donations made in favor of any of the authorized entities for cultural, scientific, and non-professional sports patronage within the Valencian Community, you can deduct 20% of the amount donated up to €250, or €150 for taxpayers who passed away before June 1st, 2025.. On the excess, the deduction will be 25%.

• Donations for research and to alleviate Covid expenses:
  You can deduct 20% on the first €150 donated and 25% on the excess. These donations must be aimed at financing research, innovation, and scientific or technological development programs in the field of treatment and prevention of infections caused by COVID-19, or to alleviate Covid expenses.
  
  
• Donations for the conservation, repair and restoration of assets part of the Valencian Cultural Heritage:
  You can deduct 20% on the first €150 donated and 25% on the excess. 
  These must be non-cash donations for the financing of expenditure programs or actions aimed at the conservation, repair, and restoration of the aforementioned assets.
  
  
• Donations allocated for the promotion of Valencian language:
  You can deduct 20% on the first €150 donated and 25% on the excess, when the donee is the Generalitat or one of its cultural public entities.
  
  
• Donations or transfers of use or loans for other purposes of a cultural, scientific or non-profesional sports nature:
  You can deduct 20% on the first €250 donated, or €150 for taxpayers who passed away before June 1st, 2025, and 25% on the excess. 
  These non-cash donations or loans for use (comodato) must be made to cultural, scientific, or non-professional sports projects or activities declared or considered to be of social interest. The maximum base shall be limited to the fair market value of the asset or right transferred at the time of its transfer. 
  The base for deductions for loans for use (comodato) shall be 4% of the asset's value as determined by the Valencian Cultural Heritage Asset Valuation Board, in proportion to the number of days corresponding to each tax period. In the case of loans for use of premises, 4% of the cadastral value shall be applied, in proportion to the number of days corresponding to each tax period.
  
  
  

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 using non-cash methods 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. The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000.

Increase in foreign financing costs for habitual residence

If you have taken out a loan for the acquisition or rehabilitation of 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.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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

If you have carried out works to preserve or improve your habitual residence, you can deduct up to 20% of the amounts invested within the tax year. If you have a disability equal to or greater than 33%, you can always deduct 50% of what was invested, within the tax year, with a maximum annual base of €5,500.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €25,000 for individual tax returns, and €40,000 for joint tax returns.

Cultural tickets

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. The acquired cultural subscription must be  from companies or institutions participating in the specific agreement signed with CulturArts Generalitat regarding the Valencian Cultural Pass.

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.

The maximum deduction base will depend on the kind of vehicle. The investments must be supported by invoices, paid using non-cash methods, and kept for at least 4 years.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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.

Those companies must be qualified as Emerging Companies (Empresas Emergentes) of the Valencian Community; this requirement is not applicable in the case of taxpayers who passed away prior to December 30, 2025.

The maximum limit of the deduction in these cases is 15,000 euros, for both individual and joint tax returns, or 9,900 euros in the case of taxpayers who passed away before December 30, 2025.

If the taxpayer lacks sufficient regional gross tax liability to apply all or part of this deduction in the period in which the right to its application is generated, the undeducted amount may be applied in the following three tax periods until the total amount is exhausted, where applicable.

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.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €30,000 for individual tax returns, and €47,000 for joint tax returns.

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.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €32,000 for individual tax returns, and €48,000 for joint tax returns.

The services received must be as a result of medical treatments are provided by healthcare establishments, centers, services, or professionals registered in the Official Registry of Healthcare Centers, Services, and Establishments, or in the National Registry of Healthcare Professionals.

The expenses must be supported by invoices, paid using non-cash methods, and kept for at least 4 years, and for the purposes of review by the tax administration, the aforementioned records must be accompanied by a report issued by a competent physician.

Sports and healthy activities expenses

You can deduct 30% of the amounts paid for the practice of sports and healthy activities.

• If you are over 65 years old or have a disability equal to or greater than 33%, the deduction is 50% of the amounts paid. 
• If you are over 75 years old or have a disability equal to or greater than 65%, the deduction is 100% of the amounts paid. 

The maximum limit is €150 per taxpayer.

The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €32,000 for individual tax returns, and €48,000 for joint tax returns.

For amounts from public aid granted to workers affected by an ERTE and to those who have reduced their working hours for family conciliation due to the declaration of the state of alarm due to the health crisis caused by Covid-19 

The amount of said deduction will be the result of applying the average general regional tax rate to the amount of the sums from the public aid granted.

Addressed to people affected by the floods caused by the DANA of October 2024 

You can deduct 100% of the repair costs incurred to deal with the damage caused directly and decisively by the storm in habitual residences,paid using non-cash methods, up to the maximum of €2000.
The sum of the taxpayer’s general taxable base and savings taxable base must not exceed €45,000 for individual tax returns, and €60,000 for joint tax returns.

Also, 45% of the amounts invested in the subscription and disbursement of shares or equity interests as a result of agreements for the incorporation or capital increase of public limited companies, limited liability companies and worker-owned companies or voluntary or compulsory contributions made by partners to cooperative societies, up to the maximum of limit of €9.900.
In this case, the deduction base may not exceed 30 percent of the taxpayer's net taxable income and companies must meet certain requirements. 

In both situations, the deduction must be claimed in the tax period in which the contribution is made. In the event that the taxpayer lacks sufficient regional gross tax liability to apply all or part of the deduction in the period in which said right is generated, the undeducted amount may be carried forward to the following three tax periods until the total amount is exhausted, where applicable.

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 → 

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