BUYING A HOME
Young buyers under 35 can claim 5 percent of the purchase price of their first home, with a maximum deduction of 9,015 euros. People with a physical, mental, or sensory disability can also deduct 5 percent of the home price, up to the same 9,015 euros limit. Additionally, 112 euros may be available for the purchase or rehabilitation of the habitual residence using public support funds from the Generalitat Valenciana.
RENT
- Residential rent qualifies for a 20 percent deduction with a maximum of 800 euros for individuals over 35.
- If you are 35 or younger, or if you have certain disability conditions or are a victim of gender based violence, the deduction is 25 percent for the habitual residence rent, up to 950 euros. If two or more conditions apply, the deduction increases to 1,100 euros.
- Five percent of rent for owning a rental property, up to 3,300 euros, not exceeding regional reference prices for Valencia.
- Ten percent of rent, up to 224 euros, if a move is required due to self employment or work, to a municipality at least 50 kilometers away from the usual residence. This is compatible with the habitual residence rent deduction when applicable.
HOME IMPROVEMENTS
- Forty percent of installations in a habitual residence or building may be deducted if energy is used for self consumption or other renewable energy, or twenty percent if installed in a second home, up to 8,800 euros.
- Twenty percent of work to improve accessibility and sustainability, up to 5,500 euros. If accessibility studies are performed due to disability, the deduction rises to fifty percent.
MORTGAGE
- Up to 100 euros can be deducted for interest increases on a home mortgage or loans for rehabilitation or accessibility work.
POPULATION REDUCTION
- Residents in municipalities at risk of depopulation may deduct up to 330 euros, with higher amounts for dependent children up to 594 euros.
CHILDREN
- Three hundred euros per child born, adopted, or raised.
- Two hundred forty six euros for multiple births or adoptions.
- Two hundred forty six or three hundred three euros for births or adoptions involving a child with a disability at or above 65 percent.
- Three hundred thirty or six hundred sixty euros for extended family or single parent families.
- Two hundred ninety seven euros for kindergarten and early childhood centers for children under three.
- Four hundred sixty euros for children aged three to five to help combine work with family life.
- One hundred ten euros per child or minor in a permanent foster family.
Many families benefited from the income campaign in the prior year, with notable savings across the board. The latest balance sheet from the Ministry of Finance and the Economic Model shows that taxpayers in the Valencia Community saved a total of eighty million euros through these regional deductions. In the most common category, rent for habitual residence, more than sixty six thousand taxpayers benefited, saving an average of about five hundred forty euros each. The second most used deduction covered birth, adoption, or foster family allowances, helping around thirty six thousand seven hundred forty five taxpayers with an average payment of roughly one eighty two euros per return. Transfers for tax reductions, extended family claims, and households with two or more grandchildren also appeared among the frequently used options. Local governments continue to address the needs of residents in depopulation risk areas, helping over sixteen thousand residents reduce wages by an average of about three hundred twenty five euros. The framework also supports solar installations and other renewables, school supplies, and entrepreneurship incentives, enabling savings for taxpayers who checked the relevant box on their returns last year, with some benefiting up to two thousand one hundred eighty six euros. The annual income campaign for the 2022 fiscal year begins on April 11, with online filing available. Telephone filing is also supported, and in-person service starts on May 5, with full service available from June 1. The campaign ends for residents with payments due in their municipality on June 27, and generally for others on June 30. The Ministry of Finance and the Economic Model attributes the high uptake to practical reliefs that help households cope with rising costs and inflation. Attribution: Ministry of Finance and Economic Model.