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Practical Income Manual 2022.

For the first acquisition of their habitual residence by taxpayers aged 35 or under

Regulations: Art. 4.One.k) and Sixteenth Additional Provision Law 13/1997, of December 23, by which The regional section of Personal Income Tax and other transferred taxes of the Valencian Community is regulated

Deduction amount

5 percent of the amounts paid during the tax period for the first acquisition of their habitual residence by taxpayers of the same age or less than 35 years , with the exception of the part of said amounts that correspond to interest .

For these purposes, in accordance with the state regulations regulating personal income tax, the construction or extension of the same is assimilated to the acquisition of a habitual residence.

Requirements and other conditions for the application of the deduction

In addition to the requirements generally established in state regulations that regulate the deduction for investment in habitual residence, for the application of this regional deduction the following must also be met:

  • That it is the first purchase of your primary home .

  • The concepts of habitual residence and its acquisition are those included in the state regulations regulating the Personal Income Tax .

  • That the age of the taxpayer , on the date of tax accrual (normally, December 31), is equal to or less than 35 years.

  • 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 into accounts in credit institutions .

    Note: 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.

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

    For these purposes, the increases or decreases in value experienced during the aforementioned tax period by the 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 financial situation .

  • The deduction can only be applied by taxpayers sum of the general taxable base and the savings taxable base (boxes [0500] and [0510] of the declaration) does not exceed the following amounts:

    • 30,000 euros in individual declaration.

    • 47,000 euros in joint declaration.

    Attention : For taxpayers who died before October 28, 2022 , the sum of the general tax base and the savings tax base may not exceed 16,212.56 euros, an amount equivalent to twice the public multiple effects income indicator (IPREM).

Deduction limits according to taxable base

  • The full amount of the deduction will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base is less to 27,000 euros, in individual taxation, or 44,000 euros, in joint taxation.

  • When the sum of the general taxable base and the taxpayer's savings taxable base is between 27,000 and 30,000 euros , in individual taxation, or between 44,000 and 47,000 euros, in joint taxation, the amounts of the deduction will be the following :

    1. In individual taxation, the result of multiplying the amount of the deduction 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 savings of the family unit and 27,000)

    2. In joint taxation , the result of multiplying the amount of the deduction 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 savings of the family unit and 44,000)

Note: For taxpayers who died before October 28, 2022, the limits that, in relation to the taxable bases, have been indicated in this section will not apply.

Compatibility

This deduction is compatible with the deduction "For acquisition of habitual residence by people with disabilities" and with the deduction "For obtaining income derived from housing rentals, whose income does not exceed the reference price of private rentals in the Valencian Community" .