If you want to know what are the autonomic deductions in Catalonia 2022, do not miss this post.
The Autonomic Deductions represent those key aspects to be able to save in the Income Tax Declaration and also that are usually updated year after year. It is one of the main reasons why the figure of a Tax Advisor is so necessary.
The Autonomous Community Deductions are not the same for each Community. They vary. In this post I am going to focus on the Autonomous Deductions in Catalonia 2022 and how in Asesoría y Consultoría Fénix we are going to enter the final stretch with the Income Tax Campaign, I hope to come with another one, in which I can share information about other communities. I remind you that you can download your Guide for free, from our section of Free Resourcesto inform you of everything relevant to the Income Tax Return! So you won’t miss anything!
The Autonomous Community Deductions are tax advantages that each community offers to its residents. They consist of “discounts” that are applied to the total regional tax liability. This quota is obtained after considering your whole economic situation, subtracting the personal and family minimums, and after having applied the IRPF brackets.
The first requirement to be able to apply the deductions of an Autonomous Community, is to have resided at least 183 days in it (half a year) and within your Draft the section will be activated to add all the necessary information, once you have updated your Tax Address.
Let’s see what these are Autonomous Deductions in Catalonia 2022What they consist of and what are the requirements to be able to access them:
Deduction for birth or adoption of a child
If you have had a son (or daughter) in the year 2021, you can deduct €150 from the full autonomic quota, if you make the Individual Declaration. If you file Jointly, the deduction is 300€. It is 150€ for each one (mother and father).
Deduction for renting a primary residence
If you live renting, pay close attention to this point because you can deduct 10% of the total annual amount you paid. That’s right! There is a limit of 300€ or 600€ if you are a large family. That is to say, father, mother with three or more children. In this case, you deduct half each (300€ each).
To qualify for this deduction, at least one of the requirements must be met:
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- Age 32 years or younger (tax accrual date)
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- Having been unemployed for 183 days or more
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- Have a recognized disability equal to or greater than 65%.
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- Be a widow or widower and be 65 years of age or older.
In addition, the following requirements must be met:
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- The sum of your taxable income (general and savings) minus the personal minimum and the family minimum cannot exceed €20,000 gross per year.
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- In addition, what you have paid in rent in 2021 has to be more than 10% of your earnings (so that it is understood that it is a big expense for you).
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- There must be a formalized legal contract between both parties (lessor and lessee).
Deduction for master’s degree and doctorate loans
Did you know that your training can be an expense included in the autonomous deductions in Catalonia 2022?
If you have taken out a loan to study for a master’s degree or doctorate, you can deduct an amount from what you have paid in interest. The deduction is not directly related to the amount you borrowed, but to the interest you paid to the entity that financed you.
The positive part is that there is no limit, the negative part is that it is applicable only in the case of student loans contracted through the Agency for the Management of University and Research Grants.
Deduction for widowhood
Another of the autonomic deductions in Catalonia 2022 is the deduction for widowhood. >It is applicable in the year when you become a widow or widower and in the following two years.
The amount you can deduct is €150, but if you have one or more dependent children under 25 years of age (who do not yet file the Income Tax Return on their own), the amount to deduct is €300.
Deduction for the promotion of the Catalan or Occitan language
That is to say, if you have donated some money to entities that promote the use of Catalan or Occitan you will be able to deduct 15% of your donation. With a maximum of 10% of the autonomous community tax. The entity in this case has to be one of the following:
The Institut d’Estudis Catalans
The Institut d’Estudis Aranesi-Aranese Academy of the Occitan Language
Any private non-profit organization
Any organization, collective or corporation whose purpose is to promote Catalan or Aranese and that is in the Census of entities for the promotion of the Catalan language of the Department of Culture and the Secretariat of Linguistic Policy of the Generalitat de Catalunya. De Catalunya
Deduction for donation to scientific and technological research
If you have made a donation of money, you can deduct 25% of that amount, with a maximum of 10% of the regional tax liability.
Deduction for renovation of the principal residence
If during 2021 you decided to renovate your apartment or house, you can recover some of that investment through this deduction. It is one of the most interesting and common, so I recommend you pay attention to it.
The deduction consists of subtracting 1.5% of what you spent on renovating the house, with a limit of 9.040€. A quite interesting amount and to be able to access it, the house must be the habitual one (or where you are going to live) or one in which you are owner or co-owner.
Deduction for environmental and heritage preservation
It consists of 15% of the money you have donated to entities for the benefit of the environment, conservation of natural heritage and land stewardship. The limit is 5% of your regional tax liability.
The entities that count are those registered in the Registry of Environmental Entities of the Gen. de Catalunya.
Deduction for being an angel investor or for investing in new entities.
An Angel Investor is someone who invests in startups or new companies in exchange for shares. What you can deduct is 30% of the amount, with a limit of €6,000 for normal companies. But if the company in which you have invested is created or is owned, even in part, by a University or a Research Center, what you can deduct is 50% of the amount contributed, with a maximum of €12,000.
There are several requirements. On your side:
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- What you invest together with the part of the company held by a relative of yours cannot be more than 35% of the business.
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- In the case of a capital increase, the company must have been founded in the fiscal year (2021) or the two preceding years.
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- You may not have any professional or employment relationship with the company in question.
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- You will be obligated to remain an investor in such company for 3 years.
As for the company, it also has to meet certain requirements. Quite a few, too:
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- It must be a Sociedad Anónima (S.A.), a Sociedad Limitada (S.L.), a Sociedad Anónima Laboral (S.A.L.) or a Sociedad Limitada Laboral (S.L.L.).
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- It must have a tax domicile and registered office in Catalonia.
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- It is mandatory that it develops an economic activity. If it is an entity for which you do not have to work and which does not generate wealth, it does not count.
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- At a minimum, you must have one person hired.
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- It cannot be a real estate or property management company (buying and selling of properties).
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- The company may not be publicly traded.
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- The annual turnover of the company must be less than 1.000.000€.
Deduction for having to file income tax returns for having more than one payer.
This deduction is especially interesting for those people who have been in ERTE. So, if you have had more than two payers you can apply this autonomic deduction. The amount to deduct is the result of subtracting the state integral quota from the autonomic integral quota. The difference is what you can at the same time subtract from the autonomic quota.
It sounds complicated and complicated, that is why I remind you that you can count on the services of Asesoría y Consultoría Fénix for any management. Especially if you need help with your Income Tax Return. Contact HERE
