The income and wealth tax declaration corresponding to 2023 can be submitted starting this Wednesday, April 3, and in the Community of Madrid it will have changes on the regional scale and 18 regional deductions.
The regional government, with the votes of the PP and Vox, approved for the second consecutive year the deflation of the Personal Income Tax (IRPF) in all its sections by 3.1%, to the already existing deductions.
The president of the Community of Madrid, Isabel Díaz Ayuso, on many occasions defends the tax advantages of the region that she directs.
In addition to this reduction in personal income tax, there are other deductions that you can opt for. Among them are state ones, such as deductions for the purchase or rental of housing, for the care of dependent elderly or disabled people, for maternity or for investment in companies or newly created companies.
The possible tax deductions in the income tax return in the Community of Madrid are detailed below:
– For the birth or adoption of a child: Those who have had or adopted a child during 2023 may deduct 721.70 euros for each one.
– International adoption of children: Families will be able to deduct the same amount as for the birth or adoption of a child, 121.20 euros more than last year.
-Family fostering of minors: For the first fostered minor, 618.60 euros will be deducted (600 euros last year), for the second 773.25 euros (750 euros last year) and 927.90 euros (900 euros per year past) by a third party or more.
-Educational expenses: These will be 15% of school expenses, 15% of language teaching expenses and 5% of exclusive school clothing expenses.
-Care of children under three years of age: Families that hire personnel to care for children under three years of age; 25% of Social Security contributions as an employer of one or more people under the special system of Domestic Employees of the General Social Security Regime.
-Unpaid care for people over 65 years of age and/or with disabilities: 1,546.50 euros per year may be deducted.
-Care of ascendants: The deduction is 515.50 euros and to benefit from it the applicant must have the right to apply the minimum for ascendants according to the law.
-Acquisition of a habitual residence due to the birth of children: 10% of the purchase price of the home may be deducted and will be applied in the year of purchase and the following nine, with a maximum limit of 1,546.50 euros per year.
-Obtaining the status of a general or special large family: For a large family in the general category, applicants may deduct 50% of the fee, and for large families in a special category, the deduction increases to 100%.
-Rental of habitual residence: 30% of the amounts paid for the rental of the habitual residence may be deducted, up to a maximum limit of 1,237.20 euros.
-Expenses derived from the rental of homes: They may deduct 10% up to a limit of 154.65 euros per year.
-Investment in the acquisition of shares and social participations of new or recently created entities: 40% of the amount invested may be deducted.
-Investments made in entities listed on the alternative stock market: 20% of the amounts invested may be deducted.
-Donations to foundations and sports clubs: 15% will be deducted from the amounts donated.
-Promotion of self-employment of young people under 35 years of age: 1,031 euros may be deducted that year.
-Payment of interest on loans for the purchase of housing by young people under 30 years of age: Young people under 30 years of age can deduct up to 25% of the interest they pay on the mortgage loan for their primary home, with a limit of 1,031 euros annual.
-Payment of interest on loans for degree, master’s and doctoral studies: You can deduct the amount of interest you have paid during the year on your own studies, those of your spouse or those of your children.
