If you are a resident or business owner in Valencia, Spain, you need to know what tax deductions are available to you in 2023. In this article, we will cover topics such as deductions for individuals, families, companies and organizations, deductions due to medical expenses and much more. We will also explain why it is important to understand these tax deductions in Valencia and how you can get the most out of them.
What are tax deductions in Valencia, Spain?
Tax deductions in Valencia, Spain, are a government incentive to reduce the amount of taxable income and thus decrease the tax burden of individuals and legal entities. By taking advantage of these deductions, taxpayers can save money and increase their take-home pay.
In the Valencian Community, there are two types of tax deductions. On one hand, those permitted by national legislation (known as “deductibles”) and, on the other hand, those permitted by regional legislation. Generally speaking, national tax deductions can be claimed in all regions, while regional deductions apply only to one region.
What deductions are allowed in Valencia in 2023?
In 2023, taxpayers in Valencia can deduct a variety of expenses and income, including the following:
1. General taxable income and family savings: The sum of the general taxable income and family savings cannot exceed 25,000 euros for individual tax returns and 40,000 euros for joint tax returns. However, under certain conditions, such as being under 36 years of age, people with a certain degree of physical, sensory or mental disability, or those who are considered victims of gender violence, up to 25% may be deducted, with a limit of 850 euros, or 30%, with a limit of 1,000 euros.
2. Deductions for Home Improvements: If you are making improvements to your home in Valencia, up to 50% of the total expenses may be deducted, with a limit of 10,000 euros.
3. Points in the refinancing of mortgages: When buying a home in Valencia, Spain, part or all of the points paid on your mortgage loan may be deducted, depending on the amount.
4. Taxes: All payments made to the regional government, such as paying for taxes on property, vehicles, businesses, etc., can be deducted from your gross income.
5. Charitable Donations: Donations to charities are deductible from your gross income, up to a certain percentage of your adjusted gross income (AGI).
6. Miscellaneous deductions: Deductions for expenses such as business trips or union dues are usually allowed for previous years but are usually limited to a certain percentage.
7. Individual credits: Depending on your circumstances, you may be able to apply for tax credits that reduce the amount of taxes you owe or increase the amount of your tax refund, even if you owe no taxes.
How can I maximize my tax deductions in Valencia?
The best way to maximize your tax deductions in Valencia is to do some research and make sure you are aware of all the deductions that are available to you. Also, it is important to keep track of all your expenses throughout the year and be sure to record them so you can take advantage of these deductions. If you are unsure about a specific deduction, you should seek the advice of a tax specialist.
Maximizing your deductions can be a great way to reduce your taxable income and save money on taxes, so it is important to make sure you understand how they work and how they can benefit you. With the right information and guidance, you will be able to make the most of these deductions in 2023.
Do you want to know more about filing the Income Tax Return in Valencia?
In Entre Trámites we invite you to know about all our services, including the service to file the 2022 Income Tax Return.
We want to listen to you and know what your questions are about your taxes in Valencia and if there are other tax declarations you have to file. Count on the advice of our experts to clarify all your doubts. Fill in our contact form and we will call you to help you as soon as possible or simply text our WhatsApp.
