10.7.16. For transfer of habitual residence

This deduction will not be applicable to taxpayers who died before June 1, 2021.

Amount

500 euros in the tax period in which the change of residence occurs and in the following one, for the expenses incurred when transferring the habitual residence for work reasons to a municipality in Castilla-La Mancha of those included in the sparsely populated areas (Decree 108/2021, of October 19, by which the rural areas of Castilla-La Mancha are determined, in accordance with the typology established in the article 11 of Law 2/2021 of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha).

Requirements and conditions

• The taxable base of the tax period in which the deduction began to be applied must be less than 22,946 euros in individual taxation or 31,485 euros in joint taxation.

  The year following the change of residence, the taxpayer may apply the deduction regardless of the amount of their taxable base in that year.

• The amount of the deduction may not exceed the autonomous part of the full quota from the income from work and economic activities of the year in which the deduction is applicable.

• The deduction is applicable to both employed workers and self-employed entrepreneurs or professionals as long as the change of residence is due to work-related reasons.

• To be entitled to the deduction, it is necessary for the taxpayer to move his habitual residence and, in addition, carry out his work activity in one of the sparsely populated areas.

• Taxpayers who moved their residence in 2020 to sparsely populated areas of Castilla-La Mancha for work reasons and meet the taxable base limits can apply the deduction in 2021.

• In joint taxation, the deduction of 500 euros will be applied for each of the taxpayers who transfer their residence with the limit of the autonomous part of the full quota from income from work and economic activities that corresponds to the taxpayers who generate the right to the deduction.

  In the event that both spouses generate the right to the deduction, in joint taxation, the maximum limit of the deduction is unique for the declaration as a whole, so its determination will be made taking into consideration all the income from work and economic activities obtained by both spouses and will be applied to the total amount of the deduction (1,000 euros).

• To consolidate the right to the deduction, the taxpayer must remain in the new habitual residence during the year in which the transfer occurs and the following three.

  In the event of the taxpayer's death, the right to the deduction will not be lost even if this requirement is not met.

Failure to comply with any of the above requirements will give rise to the return of the amounts deducted from the full autonomous community fee for the year in which the failure occurs, with the corresponding late payment interest.

Completion

If, as stated above, you meet the requirements to apply the deduction, you will check the box enabled for this purpose.