Income Campaign 2022-2023: Regional Deductions and Filing Guide for Valencia

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The Tax Office plans to refund 317 million euros to Alicante taxpayers this year. The initiative kicked off this week as part of the ongoing revenue campaign. Data from the Special Delegation in the Community of Valencia show a 2.1% decline from last year’s refunds. As repayments decrease, the Treasury expects a 10.6% rise in total payments to reach 612 million euros. Net, public coffers stand to gain 296 million euros, while a record 888,868 filings are anticipated, marking an increase of 33,478 over the previous cycle.

In 2021 there was a notable surge in the number of taxpayers required to declare. The rise stems from the Temporary Employment Regulation File (ERTE), where many workers blend multiple employers, and from obligations tied to the Minimum Vital Income. The trend continued last year and is expected to persist. Although the group affected by ERTEs has shrunk, the number benefiting from minimum income rose, and overall employment grew.

Of the total returns, 496,707 euros—nearly two-thirds—will be refunded, averaging 638 euros per case. About 287,306 euros are projected to be more favorable for taxpayers, with an average payment around 2,130 euros. Meanwhile, 104,855 returns will yield neutral or negative results, meaning no payment will be issued or received.

Regarding Wealth Tax, the Tax Office forecasts 28,169 declarations across the Community of Valencia this year, up 2.3% from last year. This is expected to translate into 196 million euros in revenue, compared with 187 million euros in 2022.

Nationally, about 22,899,000 declarations are projected, which is about 3.4% higher than the previous year. Of these, around 13,600,000 would qualify for repayments totaling roughly 9,946 million euros. Taxpayers with about 7,649,000 declarations are projected to contribute 16,448 million euros to the State coffers.

In general, individuals earning up to 22,000 euros annually from employment are not required to file a declaration. Those with income from business, capital, or other activities, as well as certain capital gains from subsidies or awards with a common limit of 1,000 euros and capital losses under 500 euros, face different filing requirements.

Income 2022-2023: A quick guide on how to file an income statement

A major feature of this campaign is the introduction of a virtual assistant by the Tax Office to help taxpayers with Personal Income Tax questions. This new tool complements a previously launched whistleblower service and strengthens overall assistance. Another improvement is the ability to present certain data to mothers who lost their maternity allowance due to job suspension and who may now qualify to receive it again.

Temporary offices

On another note, the Spanish Minister of Finance and Economic Model announced that the Valencia Tax Office will offer free, personalized telephone and in-person support to guide citizens through the income statement process. Temporary offices will be established in 21 municipalities across the Community, including Altea, El Campello, Pinoso, Santa Pola, Torrevieja, Xaló, Xixona, and l’Alfàs del Pi.

Here comes the Income Campaign: Regional deductions available in the Community of Valencia

The filing window for both declarations and refunds runs until June 30, with automatic debit filers having a deadline three days earlier, on June 27. The telephone preparation service begins on May 5, and in-person appointments start on June 1.

New deductions introduced by the Generalitat’s tax reform

The campaign features notable regional reforms that boost deductions by 10% for revenues up to 60,000 euros. Some examples of these bonuses include: buying a first home, with a 5% deduction on the home price up to 9,015 euros if the buyer is 35 or younger (the same rate applies for disabled buyers).

Rent relief offers a 20% deduction, capped at 800 euros for adults and 950 euros for minors, people with disabilities, or victims of gender-based violence. If several conditions apply, the deduction can rise to 1,100 euros.

Home improvement deductions allow up to 8,800 euros, with 40% credit for energy efficiency improvements in the primary residence and 20% for secondary dwellings. Accessibility and sustainability upgrades can be claimed at 20% up to 5,500 euros, and 50% if the person performing the work has a certain level of disability.

Mortgage-related support offers up to 100 euros for increases in mortgage interest or for rehabilitation or accessibility work.

Depopulation measures include a payment of 330 euros for residing in a depopulated municipality, which can rise to 594 euros per child.

Child-related benefits include 300 euros per child born, adopted, or in foster care; 246 euros for multiple births or adoptions; and 246 to 303 euros for the birth or adoption of a disabled child. Larger families can receive 330 to 660 euros, with additional allocations for kindergartens and early childhood support, as well as subsidies to reconcile work and family life. An additional 110 euros per child is available for families in permanent foster care.

Fertility benefits include 100 euros for women aged 40-45 who have undergone fertility treatment.

Disability benefits provide 197 euros for disabled individuals aged 65 and over.

Work-related deductions cover 50% of contributions for long-term unemployed individuals who remain employed to care for children under five.

Mobility incentives include a 10% discount on the purchase of bicycles or city electric vehicles.

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