2. Spanish Property Law
For the most comprehensive analysis of
Property Law in Spain written in English go to:
Spanish Property Law
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3. Income Tax Deductions in Spain
There are 17 autonomous communities or regions in Spain
and each has competency to regulate tax exemptions and
deductions within it’s territory.
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4. Income Tax Deductions in Spain
However, the central state government also regulates income
taxes.
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5. Income Tax Deductions in Spain
Both systems work together in a complex arrangement that
means that taxpayers pay a proportion of their taxes to the
central government and the remainder to their local
government.
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6. Income Tax Deductions in Spain
So when we refer to a tax deduction available in a particular
region, this may not be the whole story.
Additional deductions, with different qualifying criteria, may
also exist at a state level.
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7. Income Tax Deductions Castilla La Mancha
If you have dealings with property and pay income tax in
Castilla La Mancha then you may be in line for a tax break.
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8. Income Tax Deductions in Castilla La Mancha
The regional level exemptions available in the Castilla La
Mancha were enacted by the parliament in Toledo with the
most important provision contained in Ley 9/2008
The deduction relates to investment in the principal private
residence as follows:
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9. Deductions for Purchase of Personal Private
Residence
In addition to the deductions available at the state level, 1%
of the amount invested in acquiring the personal private
residence may be deducted from income tax of that same
fiscal year.
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10. Deductions for Purchase of Personal Private
Residence
1% of the amount invested in refurbishing a personal private
residence to make it suitable for use by the disabled may be
deducted similarly.
.
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11. Deductions for Purchase of Personal Private
Residence
The deduction is subject to the following criteria being
fulfilled:
1) The purchase of the property must be carried-out using a
mortgage obtained from a financial institution in the list
referred to in Article 2 Ley 2/1981 (Regulation of the
Mortgage Market)
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12. Deductions for Purchase of Personal Private
Residence
In the case of refurbishing a home to make it suitable for the
disabled, a loan from any financial institution on the same list
is acceptable.
2) The income tax declaration for claiming the deduction
should contain the reference number of the loan/mortgage
contract.
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13. Deductions for Purchase of Personal Private
Residence
3) The net income of the taxpayer must not exceed €50,000
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14. For more information or assistance with legal or tax
matters from our network of local English-speaking
property lawyers in Castilla La Mancha, go to:
Property Lawyers in Castilla La Mancha
Source AEAT
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