Are you preparing your tax return? Have you taken into account all the deductions you can take advantage of? From 11Onze we detail eleven deductions that allow some type of saving when it comes to sorting your accounts with the Tax Agency.

In the income tax return we can take advantage of various tax deductions depending on the type of taxpayer we are, whether we are an individual or a legal entity. It should be borne in mind that, as well as state deductions, there are also regional deductions, depending on the autonomous community where you live and work. In the case of Catalonia, the Tax Agency provides the relevant information on its website.

It is important to bear in mind that deductions are limited by age, income, and other circumstances. Therefore, we cannot forget to read the small print. Having said that, here are the main state and regional deductions that are in force:

1. For large families or disabled dependents.

As detailed by the Tax Agency, among the state deductions for families, there is the specific one for large families, which is 1,200 euros for three children, 1,800 euros for four children, and 2,400 euros for five children. Even so, in some cases, a deduction of 1,200 euros can be applied for each of the descendants or ascendants with a disability or a spouse who is not legally separated and has a disability. These last deductions are only applicable if the annual income does not exceed 8,000 euros.

2. For maternity, birth, or adoption

Working mothers can apply a deduction of 1,200 euros per year for each child under the age of three, provided that they live with them. Childcare expenses can increase this amount by up to 1,000 euros. For residents in Catalonia, a deduction for birth or adoption of 300 euros is recognised in the case of a joint declaration by the parents, or 150 euros for each of the parents if this is done individually.

3. For donations to foundations and associations declared to be of public utility

Donations to NGOs, foundations, and public research bodies dependent on the General State Administration have deductions ranging from 10% to 80% of the amounts paid. At the regional level, deductions are also available for donations to organisations that promote the use of the Catalan or Occitan language, as well as for entities that promote Y+D+Y and environmental conservation.

4. For membership fees and contributions to political parties

A deduction of 20% is applied for membership fees and contributions to political parties, federations, coalitions, or groups of voters, with a maximum limit of 600 euros per year. It should be borne in mind that contributions made once you have ceased to be a member do not form part of the base on which the aforementioned deduction has to be calculated.

5. For investment in new or recently created companies

It is possible to deduct 30% of the amounts paid for the subscription of shares in new or recently created companies. The maximum deduction base will be 60,000 euros per year and will be formed by the acquisition value of the shares or holdings subscribed.

6. For building work to improve the energy efficiency of housing.

There are three types of possible deductions:

• Deduction of 20%, with a maximum of 5,000 euros, for reforms to improve the energy efficiency of a property that reduces energy consumption by at least 7%.
• Deduction of 40%, with a maximum of 7,500 euros, for improvement works that reduce the consumption of non-renewable primary energy by 30%.
• Deduction of up to 60%, with a maximum of 15,000 euros, for home improvements that reduce the primary energy consumption of a residential building by at least 30%.

7. For renting the main residence

These are deductions under a transitional regime and are to be abolished, which only apply if you are the holder of a rental contract dated prior to 1 January 2015. We can deduct 10.05% of the amounts paid in the tax period, provided that the taxable base is less than 24,107.20 euros.

8. For investment in the main residence

As in the previous case, this is a deduction that was abolished in 2013, but which is maintained on a transitional basis for taxpayers who acquired or paid amounts for the construction of their main residence before 1 January 2013. We have to bear in mind that the maximum deduction base for investments in the acquisition, rehabilitation, or extension of the main residence is 9,040 euros per year.

9. For investment by a ‘business angel’ for the acquisition of shares or stock holdings

• Deduction of 30%, up to a maximum of 6,000 euros, on amounts invested during the year in the acquisition of shares or holdings in companies as a result of agreements for the incorporation of companies or capital increases in commercial companies.
• Deduction of 50%, up to a limit of 12,000 euros, in companies created or owned by universities or research centres.

10. For taxpayers who were widowed in 2020, 2021 or 2022

A general reduction of 150 euros can be obtained, and of 300 euros if the person who becomes a widow or widower has one or more descendants who qualify for the application of the minimum for descendants.

11. For income obtained in Ceuta and Melilla

Taxpayers can deduct 60% of the state and regional tax liability corresponding to income obtained in Ceuta and Melilla. This deduction is also applicable for periods of residence in these cities of no less than three years for income obtained outside Ceuta and Melilla if at least one-third of the net assets are located in the aforementioned cities.

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