Deductions on principal residence in the valencian community: Renta 2023

Below we will tell you about the deductions available to taxpayers in the Valencian Community for the 2023 income tax year.

The year has just started and, with it, a new tax year. This has been made clear by the Tax Agency with the publication of the taxpayer’s calendar for 2024, a calendar that includes an important new feature: this year, the 2023 income tax campaign will begin on 3 April, eight days earlier than last year. From this date, taxpayers will be able to request the draft tax return and the deadline for filing the income tax return online will open.

Regional deductions for main residence

At Hispania Homes, we have prepared a PDF with all the existing deductions for main residences in the Valencian Community for the 2023 Income Tax Year. Download the 2023 Income Tax Guide and learn all the details about the housing deductions you can apply for in your community.

Below, we provide a summary of each of them

For income derived from renting

Deduction of 5% of the income obtained from renting a home, provided that the following requirements are met:

• That the rental income is obtained in accordance with current legislation on urban leases.
• If the property has been previously rented for less than three years, the current tenant must not be the same as the previous tenant.
• That the monthly rent does not exceed the reference price for private rents in the Valencian Community.
• That a deposit has been deposited as indicated in the legislation on urban leases in favour of the Comunidad Valenciana.

For the purchase of a habitual residence for people under 35 years of age

Deduction of 5% of the amounts paid for the purchase of a primary residence for taxpayers under 35 years of age, provided that the following circumstances are met:

• That it is the purchase of a first main residence
• The taxpayer is 35 years old or younger on the date of accrual of the tax (normally 31 December)
• That the purchase of the property is made by credit/debit card, bank transfer, nominative cheque or deposit in accounts in credit institutions.
• The taxpayer’s wealth at the end of the tax period exceeds, at least, the amount of the investments made compared to the beginning of the tax period.
• That the general net taxable income and the savings net taxable income of taxpayers who qualify for the deduction does not exceed 30,000 euros in an individual tax return or 47,000 euros in a joint tax return.

For the purchase of a primary residence for people with disabilities

Deduction of 5% of the amounts paid for the purchase of a primary residence by persons with the following recognised degrees of disability:

• Degree of physical or sensory disability equal to or greater than 65%
• Degree of mental disability equal to or greater than 33%

For the acquisition or rehabilitation of housing from public subsidies

112 euros for amounts from a subsidy granted by the Generalitat for the purchase or renovation of a permanent home or the amount resulting from applying the average general regional tax rate to the amount of the public subsidy.

For renting a permanent residence

20%, with a limit of 800 euros, in general.

25%, with a limit of 95 euros, if the tenant meets any of the following conditions:

• Be 35 years of age or younger.
• Have a recognised degree of physical or sensory disability equal to or greater than 65%, or a mental disability greater than 33%.
• Be considered a victim of gender violence according to the provisions of Law 7/2012, of 23 November, of the Generalitat against violence against women in the Valencian Community.

For renting housing for carrying out an activity

Deduction of 10% of the amounts paid for the rental of a dwelling used for carrying out a self-employed or employed activity in a municipality other than the one in which the taxpayer resides. For this, the following requirements must be met:

• The rented property (in the Valencian Community) must be more than 50 km from the property in which the taxpayer resided immediately prior to the rental.
• That the amounts paid for the rental are not paid by the employer.
• That the taxpayer’s general and savings taxable base does not exceed 30,000 euros in an individual tax return or 47,000 euros in a joint tax return.
• That the rental amounts are paid by credit/debit card, bank transfer, nominative cheque or deposit in accounts in credit institutions.

For investment in self-consumption of electricity facilities

Deduction of 40% of the amount of the sums invested in the main residence destined to:

• Installations for self-consumption of electricity
• Installations for the production of thermal energy from solar energy, biomass or geothermal energy for the generation of domestic hot water, heating and/or air conditioning
• Installations for the production of electrical energy from solar photovoltaic or wind energy for the electrification of homes isolated from the electricity distribution grid and whose connection to the grid is technically, environmentally or economically unfeasible.

Deduction of 20% of the amount invested in the installations mentioned in the previous point, but on second homes.

Other regional deductions

In addition to the deductions for main residence in the Valencian Community that we have just described, taxpayers in this community will be able to enjoy a series of new deductions during the 2023 tax year, which have nothing to do with main residence.

• Deduction of 30%, with a maximum of 150 euros, for expenses related to oral health.
• Deduction of 30%, with a maximum of 100 euros, for the purchase of prescription glasses, contact lenses and cleaning solutions.
• Deduction of 30%, with a maximum of 150 euros, for expenses generated by members of the family unit who need help due to suffering from any pathology assimilated to mental health problems.
• Deduction of up to 100 euros for expenses generated by members of the family unit with highly complex chronic illnesses (150 euros in the case of large families or single-parent families).
• Up to 100 euros for expenses generated by members of the family unit with brain damage or Alzheimer’s (150 euros in the case of large families or single-parent families).
• Spend 150 euros for sports expenses (e.g. gymnasium) or for becoming a member of a federation.

We remind you that the 2023 Income Tax Guide with the deductions for main residences in the Valencian Community is now available. Download the Guide in PDF and learn all the details about the housing deductions you can apply for to pay less in your next Tax Return.

Download Income Tax Guide [PDF] >>