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Practical manual for Income Tax 2023.

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, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Amount of deduction

5 percent of the amounts paid during the tax period for the first acquisition of their habitual residence by taxpayers aged 35 or under , with the exception of the portion of said amounts corresponding to interest .

For these purposes, in accordance with the state regulations governing IRPF the construction or extension of the same is considered to be the acquisition of a habitual residence.

Requirements and other conditions for the application of the deduction

In addition to the requirements established in general terms in state regulations that regulate the deduction for investment in habitual housing, the following must also be met to apply this regional deduction:

  • That this is the first acquisition of your habitual residence .

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

  • That the age of the taxpayer , on the date of accrual of the tax (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 act or legal transaction gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit .

    Note: This requirement is established by Additional Provision Sixteen of Law 13/1997, of December 23, which regulates the autonomous section of the IRPF and other transferred taxes.

  • It is 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 .

  • The deduction may only be applied by taxpayers whose 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.

Deduction limits based on 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 than 27,000 euros, in individual taxation, or 44,000 euros, in joint taxation.

  • When the sum of the general taxable base and the savings taxable base of the taxpayer is between 27,000 and 30,000 euros , in individual taxation, or between 44,000 and 47,000 euros, in joint taxation, the deduction amounts 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 family unit savings 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 family unit savings and 44,000)

Compatibility

This deduction is compatible with the deductions "For the acquisition of habitual housing by persons with disabilities" and "For obtaining income derived from housing leases, the rent of which does not exceed the reference price for private rentals in the Valencian Community."