These are the deductions in the Community of Madrid for Income 2021-2022

The 2021-2022 Income Campaign will begin in just three weeks, but taxpayers can already consult a lot of practical information on the official channels of the Tax Agency: from the news for this year to the deductions in each autonomous community that can provide them with a small relief in the presentation of the declaration.

The Community of Madrid is one of the regions with the most taxpayers. All of them can now check what are the deductions available for this Income Campaign. They are explained in the .

By birth or adoption of children

A deduction of 600 euros is contemplated for each child born or adopted, which may be applied in the exercise of the causal event and in the following two. In multiple births and adoptions, the deduction increases by 600 euros for each child born or adopted. The deduction may be prorated if both parents decide to apply it in individual taxation.

The sum of the general tax bases and the savings may not exceed 30,000 euros per year in individual declaration and 36,200 euros per year in joint taxation. In addition, the sum of the bases of all the members of the family cannot exceed 60,000 euros per year.

For international adoption of children

A deduction of 600 euros is granted for each international adoption, which will be the case when “results from the rules and conventions applicable to this matter.” It can also be prorated between the parents and is compatible with the deduction in the previous section.

For foster care of minors

Different deductions are given for each minor in foster care: 600 euros for the first minor, 750 for the second minor and 900 for the third and for each successive minor. In all cases they must be living together for at least 183 days and it will be apportionable between the two members of the couple.

The limits on the sum of the general tax bases and savings are 25,620 euros per year in individual taxation and 36,200 euros per year in joint taxation.

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For unpaid fostering of people over 65 years of age and/or with disabilities

A deduction of 1,500 euros is granted (prorated among the taxpayers of the family unit who are entitled to it) for each person over 65 years of age with a disability of at least 33%, provided that they are dependent on the taxpayer for a minimum of 183 days in exercise and without financial consideration. In addition, this sheltered person cannot be entitled to aid or subsidies from the Community of Madrid and cannot be linked to the taxpayer in a fourth or lower degree of consanguinity or affinity.

The limit on the sum of the general tax bases and savings is 25,620 euros per year in individual taxation and 36,200 euros per year in joint taxation.

For rent of habitual residence

It is the traditional rent deduction, which grants a deduction of 30% of the amounts paid for rent with a limit of 1,000 euros for people under 35 years of age (or under 40 years of age in cases of unemployment and family responsibilities).

The limit on the sum of the general tax bases and savings is 25,620 euros per year in individual taxation and 36,200 euros per year in joint taxation. In addition, the sum of the bases of the family unit cannot exceed 60,000 euros per year. In addition, the rental expense must account for at least 20% of the sum of these bases.

And, importantly: in order to enjoy the deduction, it is essential to present the Property Transfer Tax () to avoid problems with the Treasury.

For donations to foundations or sports clubs

15% of donations made to regulated entities may be deducted. The deduction base may not exceed 10% of the sum of the general tax base and savings.

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For educational expenses

You can deduct 15% of school expenses, 10% of language teaching expenses and 5% of clothing expenses for exclusively school use. For this, only the expenses generated by the children or descendants who give the right to the minimum for descendants will be taken into account.

The limit to the sum of the general tax bases and savings is 30,000 euros per year or the result of multiplying that figure by the number of members of the family unit.

The maximum limit of the deduction is 400 euros for each child in language teaching and clothing expenses, but it goes to 900 euros if expenses are generated for schooling (1,000 euros if it is the first cycle of Early Childhood Education).

For caring for children under 3 years of age

20% of the contributions paid into the Special System for Domestic Employees are deducted, with a limit of 400 euros. This is 30% and a limit of 500 euros for large families.

To do this, one or more people must be registered in the Special System for Domestic Employees of the Social Security and the parents must be registered in some activity as an employee or self-employed for at least 183 days of the financial year.

The sum of the general tax bases and the savings cannot exceed 30,000 euros per year for each member of the family unit.

For families with two or more children and low income

A deduction of 10% of the amount resulting from “reducing the full regional quota in the rest of the regional deductions applicable in the Community of Madrid and the part of state deductions that are applied to said full regional quota” is made.

The sum of the general tax bases and the savings cannot exceed 24,000 euros per year.

For investment in new or recently created entities

30% of the amount invested for the acquisition of shares or social participations in the incorporation of companies or capital increases in public limited companies or limited liability companies are deducted, with a limit of 6,000 euros. This increases to 50% and a limit of 12,000 euros in labor corporations, labor limited liability companies and cooperative companies or companies created or owned by universities or research centers.

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These shares must be kept for at least three years and may not exceed 40% of the share capital at any time. In addition, companies must have their domicile in the Community of Madrid.

For the promotion of self-employment of people under 35 years of age

The deduction is 1,000 euros for those under 35 years of age who register for the first time in the year, as a natural person or as a participant in an entity under the income allocation regime, in the Census of Entrepreneurs, Professionals and Withholders.

The activity must take place mainly in the Community of Madrid and be maintained for at least one year.

For investments in alternative stock market entities

20% of the amounts invested in the year are deducted, with a limit of 10,000 euros. The shares or participations must be held for at least two years and not exceed 10% of the capital during the two years following the acquisition. During this period, the company must also have its registered office and fiscal domicile in the Community of Madrid, and must not have as its main activity the management of movable or real estate assets.

This deduction is incompatible with the one granted for investments in recently created companies or entities, stated above.

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