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Practical manual for Income Tax 2020.

For amounts destined for the acquisition or rehabilitation of habitual residence, coming from public aid

Regulations: Art. 4.One.m) Law 13/1997, of December 23, regulating the autonomous section of the personal income tax and other transferred taxes, of the Valencian Community.

Amount and requirements for applying the deduction

The amount that comes from the following:

  • 102 euros per taxpayer provided that the latter has effectively allocated, during the tax period, to the acquisition or rehabilitation of the dwelling that constitutes or will constitute his habitual residence, amounts from a subsidy for this purpose granted by the Generalitat, charged to its own budget or that of the State.

    The amounts will be understood as effectively allocated to the acquisition or rehabilitation of the habitual residence in accordance with the rules of temporary imputation of income established in the state regulations governing IRPF .

    Note: the criteria for the temporary imputation of certain aid relating to the rehabilitation of the habitual residence are discussed in Chapter 11. 

    When the aid is allocated in several tax periods, the amount of the deduction will be prorated between the years in which such allocation occurs.

    For its part, the concepts of habitual residence and rehabilitation thereof are those established in the aforementioned regulations.

  • The amount resulting from applying the average general regional tax rate to the amount of public aid , provided that the taxpayer has actually used, during the tax period, the amounts from the public aid granted for this purpose by the Generalitat, charged to its own budget or that of the State, to acquire or rehabilitate the dwelling that constitutes or will constitute his or her habitual residence.

    In the case of public aid for rehabilitation, it must be granted in the field of building rehabilitation and urban regeneration and renewal in those neighborhoods or groups of buildings and homes that require the demolition and replacement of their buildings, the redevelopment of their open spaces or the review of their equipment and facilities, including, where appropriate, the temporary relocation of residents.

    Note: The taxpayer must choose to apply one or the other amount (102 euros or the amount resulting from applying the average general regional tax rate to the amount of public aid) when the requirements for both are met.

  • The application of deduction is conditional on the delivery of the monetary amounts derived from the act or legal transaction that gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit institutions .

    This requirement is required by the Sixteenth Additional Provision of Law 13/1997, of December 23, which regulates the autonomous section of the Personal Income Tax and other transferred taxes.

  • It is also required that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the same by at least the amount of the investments made.

    For these purposes, increases or decreases in value experienced during the aforementioned tax period by assets that at the end of the period continue to form part of the taxpayer's assets will not be computed.

    See Chapter 16 for verification of the assets situation

Incompatibility

This deduction is incompatible, for the same amounts, with the deduction "For the first acquisition of a habitual residence by taxpayers aged 35 or under" and with the deduction "For the acquisition of a habitual residence by a person with a disability".