Skip to main content
Practical Income Manual 2021.

For habitually residing in a municipality at risk of depopulation

Regulations: Art. 4.Uno.aa) Law 13/1997, of December 23, which regulates the regional section of the Personal Income Tax and remaining transferred taxes, from the Valencian Community.

Deduction amounts

  • 300 euros

  • The previous amount will be increased by:

    • 120 euros in the event that the taxpayer has the right to apply the minimum for descendants for one person .

    • 180 euros in the event that the taxpayer has the right to apply the minimum for descendants for two people

    • 240 euros in the event that the taxpayer has the right to apply the minimum for descendants for three or more people .

    Precisions for the application of the increased amounts :

    • The amount of the increase is unique depending on the number of descendants.

    • When two or more taxpayers have the right to apply the minimum for descendants by the same person and meet the required requirements, the additional amounts will be prorated among them in equal parts.

    • The descendants to be taken into account, for the purposes of determining the applicable increased amounts, are only those for whom the minimum is applicable for descendants and who, in addition, do not give the right to the deductions “Due to birth, adoption or foster care.” ", "By birth or adoption of multiples" and "By birth or adoption of children with disabilities " (see in this regard the "Incompatibility" section of this deduction).

    Example:

    The taxpayer Mr. AR resides in a municipality at risk of depopulation and has two descendants for whom the minimum can be applied for descendants of different mothers: his ex-spouse Mrs. BS who resides in Valencia capital, and his current spouse Mrs. CH, who has no other children, and with whom he lives.

    Determine the amount of the deduction that corresponds to each one and the amount that would correspond to Mr. AR and Mrs. CH. if they will file a joint return.

    Solution:

    1. Amount of deduction applicable by Mr. AR: 300 + 120 + [(180 -120) ÷2] = 450

      The applicable deduction will be the result of adding the increase in the deduction to 300 euros: 120 euros for the son who lives in Valencia capital with Mrs. BS and for which only don AR You are entitled to the deduction plus 30 euros for the child in common with Mrs. CH which results from the difference between the increase that would correspond to Mr. AR. in your individual declaration (180 euros) less the amount corresponding to the common child with CH (120 euros) divided by two.

    2. Amount of deduction applicable to Mrs. BS: You are not entitled to the deduction because you do not reside in a municipality at risk of depopulation

    3. Amount of deduction applicable to Ms. CH: 300 + (120 ÷ 2) = 360

      In this case the increase will be 120 euros because the taxpayer has the right to apply the minimum for a descendant and the proration will proceed because Mr. AR: also has the right)

    4. Amount of the deduction applicable in case of joint declaration of Mr. AR and Mrs. CH: 300 +120 + (180-120) = 480

      In the case of a joint return, the applicable deduction will be the result of adding to 300 euros the increase in the deduction that corresponds to Mr. AR's son. and Mrs. BS which is 120 euros plus the difference between the increase that would correspond to Mr. AR. in your individual declaration (180 euros) less the amount corresponding to the common child with CH (120 euros).

    Conditions for applying the deduction

    • Regarding habitual residence the concept of habitual residence included in the state regulations regulating the tax will apply.

    • Municipalities at risk of depopulation.

      1. For the purposes of considering a municipality as at risk of depopulation, it must be a beneficiary of the Municipal Cooperation Fund to combat the depopulation of the municipalities of the Valencian Community in the budget year in which the tax accrual occurs or in the previous one for meeting at least five of the following requirements:

      1. Population density . Number of inhabitants: less than or equal to twenty inhabitants per square kilometer.

      2. Population growth . Population growth rate in the period included in the last twenty years: less than or equal to zero percent.

      3. Vegetative growth rate . Percentage that represents the natural balance (difference between births and deaths) of the population in the period between the last twenty years: less than or equal to -10%.

      4. Aging index . Percentage represented by the population over 64 years of age over the population under 16 years of age: greater than or equal to two hundred fifty percent.

      5. Dependency index . Quotient between the sum of the population of those under 16 years of age and over 64 years of age and the population between 16 and 64 years of age, multiplied by 100: greater than or equal to sixty percent.

      6. Migration rate . Percentage that represents the migratory balance in the period between the last ten years (difference between population entries and exits for migratory reasons) over the total population of the last year: less than or equal to zero.

      These data will be determined in accordance with the population figures approved by the Government that appear in the latest current municipal register, and official statistics published by the National Institute of Statistics, by the Valencian Institute of Statistics and official data from public administrations.

      2. Municipalities that, even without meeting the indicated requirements, belong to functional areas with a demographic density equal to or less than 12.5 inhabitants per square kilometer will also have this condition. The functional areas will be determined in accordance with the official data on territorial demarcations registered in the Registry of Local Entities of the Valencian Community, created by Decree 15/2011, of February 18, of the Consell.

      See in this regard the Resolutions of June 11, 2020 (DOCV June 17, 2020) and August 5 (DOCV August 9, 2021), of the Generalitat, on the allocation of the specific line of the Municipal Cooperation Fund for the fight against depopulation of the municipalities of the Valencian Community corresponding to each beneficiary entity, for the 2020 and 2021 budget years, respectively.

    • In the case of joint taxation the same deduction amounts that are established for the purposes of individual taxation are applied.

    Incompatibility

    This deduction is incompatible, for the same descendant or assimilated, with the deductions "For birth, adoption or foster care", "For multiple births or adoption" and "For birth or adoption of children with disabilities".