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Practical Income Manual 2021.

For the amounts allocated to non-occasional custody in daycare centers and first cycle early childhood education centers of children or children under the permanent foster care modality, under three years of age.

Regulations: Art. 4.One.e), Four and Fifth Law 13/1997, of December 23, which regulates the autonomous section of the Income Tax of Natural Persons and other transferred taxes, of the Valencian Community.

Deduction amount

15 percent of the amounts paid , during the tax period, destined for the custody in daycare centers and early childhood education centers, of children or permanent foster care, under three years of age.

Requirements and other conditions for the application of the deduction

  • That the parents or caregivers who live with the minor carry out activities on their own or as an employee for which they receive income from work or economic activities.

  • That the sum of the general taxable base and the savings taxable base , is not greater than :

    • 25,000 euros in individual declaration.

    • 40,000 euros in joint declaration.

  • When two reporting taxpayers are entitled to the application of this deduction for the same child or foster child, their limit will be prorated between them in equal shares.

  • If throughout the year the child or foster child stops being under three years old, the limit of this deduction will be prorated by the number of days of the tax period in which he or she was under three years old . The same treatment is also applicable when the child was born or the foster care occurred during the financial year.

  • Furthermore, the application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that entitles its application to be made by credit or debit card, bank transfer, nominative check or deposit in accounts in credit institutions .

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

Quantitative limits of the deduction

  • The maximum limit of the deduction will be 270 euros, for each of the children or permanent foster children, under three years old , enrolled in daycare centers and first cycle early childhood education centers.

  • This maximum limit of 270 euros will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base (boxes [0500] and [0510] of the declaration) is less than 23,000 euros, in individual taxation, or less than 37,000 euros, in joint taxation.

  • When the sum of the general taxable base and the taxable base of the taxpayer's savings is between 23,000 and 25,000 euros , in individual taxation, or between 37,000 and 40,000 euros , in joint taxation, the limits of the deduction will be the following:

    1. In individual taxation, the result of multiplying the maximum limit of the deduction (270 euros) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 2,000 the difference between the sum of the general taxable base and the taxpayer's savings and 23,000)

    2. In joint taxation , the result of multiplying the maximum limit of the deduction (270 euros) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 3,000 the difference between the sum of the general taxable base and the taxpayer's savings and 37,000)