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Practical guide to 2021 Income Tax.

For amounts intended for the purchase or renovation of a primary residence, from public aid

Regulations: Art. 4.Uno.m) Act 13/1997, of 23 December, regulating the autonomous range of Personal Income Tax and other taxes transferred, from the Valencian Community.

Amount and requirements for applying the deduction

The amount applicable from among the following:

  • 102 Euros per taxpayer, provided that the taxpayer has effectively allocated, during the tax period, to the acquisition or renovation of the a property that constitutes or is going to be established as its habitual residence, amounts from a grant for this purpose granted by the Government, charged to its own budget or that of the State.

    The amounts shall be effectively used to purchase or refurbish the main residence in accordance with the rules for temporary imputation of income established in the state regulation on Personal Income Tax.

    Note: The criteria for temporary allocation of certain aid relating to the renovation of the main residence are discussed in Chapter 11. 

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

    The concepts of the main residence and rehabilitation of the same are those established in the aforementioned regulations.

  • The amount resulting from applying the average autonomous general tax rate on the amount of the public aid, provided that the the taxpayer has effectively stopped, during the tax period, the acquisition or renovation of the property that constitutes or is going to constitute its habitual residence, the amounts from the public aid granted by the Government, charged to its own budget or that of the State.

    In the case of public aid for rehabilitation, it must be granted in the field of building renovation, regeneration and urban renewal in those neighbourhoods or assemblies of buildings and homes that require the demolition and replacement of their buildings, the re-urbanisation of their free spaces or the review of its facilities and facilities, including, where applicable, the temporary relocation of residents.

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

  • The application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that is legally to be applied , it is carried out by credit or debit card, bank transfer, registered cheque or deposit in accounts with credit institutions.

    This requirement is required by the Additional Provision of Act 13/1997 of 23 December, which regulates the autonomous range of Personal Income Tax and other taxes assigned.

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

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

    See chapter 16 for checking the equity situation.

Incompatibility

This deduction is incompatible, for the same amounts, with the deduction "For the first purchase of your main home by taxpayers of age equal to or less than 35 years old" and with the deduction "For the purchase of a main residence by person with disabilities."