News published in INFORMA 2018

New items published in the INFORMA programme during May

The requirements that must be met in order to apply the regional deduction for investment in air conditioning and/or hot water installations that use renewable energy in the habitual residence and are intended exclusively for self-consumption are indicated.

Residents of the Autonomous Community of Galicia can deduct the amounts provided for in each of the cases set out below for each child born or adopted in 2017 who lives with them on the date the tax becomes due. The amounts indicated for children born or adopted in 2015 or 2016 will also be deductible, provided that they live with the taxpayer on the date the tax is due.

The regional deductions established by the Autonomous Community of La Rioja for 2017 are listed below.

Disabled people who are habitually resident in La Rioja can deduct 15% of the amounts paid for adaptation works on that home which, being located in said community, constitutes their habitual residence, provided that they meet the indicated requirements.

Residents in the Autonomous Community of Valencia who have physical or sensorial disabilities equal to or greater than 65 percent, or intellectual disabilities equal to or greater than 33 percent, may deduct 5 percent of the amounts paid during the tax period on the acquisition of a home that is or will become their place of habitual residence. In order to apply the deduction, the sum of the general tax base and the savings base of the taxpayer must not exceed 15,039.18 euros (double the multiplier for the public income index), both in the individual tax return and the joint return. In joint taxation, the deduction can only be applied to the taxpayers who, taken individually, meet the necessary requirements. This deduction is compatible with the automatic deduction for first-time buyers of 35 years of age or under.

Residents in the Autonomous Community of Valencia may deduct 15 percent of straightforward donations made during the tax period to assets that form part of the Cultural Heritage of Valencia and are listed as General Heritage sites or projects, provided they are donated to the entities listed and do not exceed the maximum stated.

Residents in the Autonomous Community of Valencia can deduct 15 percent of the monetary amounts donated to entities and charities detailed in the question up to the maximum amounts stated.

Residents in the Autonomous Community of Valencia are entitled to deduct 15 percent of donations made during the year in aid of the promotion of the Valencian Language, through the entities listed and up to the maximum amounts stated.

Taxpayers residing in the Autonomous Community of Valencia can apply a deduction for work carried out on their habitual residence from 1 January 2014 to 31 December 2015, provided its purpose was the conservation of the property of the improvement of its quality, sustainability and accessibility. The amount of the deduction will be 10 percent of the amounts paid in 2017 on building or renovation work carried out in 2014 and 25 percent of amounts paid in 2017 on work carried out in 2015.

The refund by the financial institution of mortgage loan arrangement expenses (notary, registrar and management fees) as a result of a court order cancelling the land clause will not give rise to a gain for the taxpayer since its payment solely constituted an application of income, provided these expenses were not deducted in capital gains or income from economic activities. However, if these amounts formed part of the deduction base for investment in habitual residence, it must be adjusted if it corresponds to years that have not prescribed.

If, after a verification procedure, the deductible expenses of declared capital assets were higher, the reduction for leases on properties used as dwellings will be applied to the declared income without increasing this amount since a higher capital gain corresponds due to the increase in income. If a negative return were entered, the reduction is not applicable if, as a result of the procedure, the capital gain were to be positive.

If, after a verification procedure, the deductible expenses of declared capital assets were lower, the reduction for leases on properties used as dwellings will be applied to the declared income without increasing this amount since a higher capital gain corresponds due to the reduction in expenses. If a negative return were entered, the reduction is not applicable if, as a result of the procedure, the capital gain were to be positive.

When the amounts refunded for this item, in previous years were included in the deduction base for investment in a habitual residence, the entitlement shall be lost and the adjustment should be made in the year in which the agreement was entered into with the financial institution, exclusively in relation to the amounts deducted in the years in which the Administration's right to determine the tax payable had not prescribed. The reference date for determining whether it has prescribed will be the date of the financial institution agreement.