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Practical manual for Income Tax 2022.

By habitual residence in rural areas

Regulations: Art. 12 bis and Second Additional Provision of Law 8/2013, of November 21, of the Autonomous Community of Castilla-La Mancha, on Tax Measures

See also the sixth Additional Provision of Law 2/2021, of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha

Amount of deduction

A distinction must be made between:

A) Habitual residence in a municipality included in an area of intense depopulation :

  • 20 percent of the full regional quota, if the municipality has a population of less than 2,000 inhabitants.

  • 15% of the full regional quota, if the municipality has a population equal to or greater than 2,000 and less than 5,000 inhabitants.

B) Habitual residence in a municipality included in an area of extreme depopulation:

  • 25% of the full regional quota, if the municipality has a population of less than 2,000 inhabitants.

  • 20 percent of the full regional quota, if the municipality has a population equal to or greater than 2,000 and less than 5,000 inhabitants.

C) Habitual residence in a municipality included in an area at risk of depopulation:

  • 15% of the full regional quota, if the municipality has a population of less than 2,000 inhabitants.

  • 10% of the full regional quota, if the municipality has a population equal to or greater than 2,000 and less than 5,000 inhabitants.

D) Habitual residence in municipalities including one of the intermediate rural areas with a predominance of agricultural activity referred to in the Sixth Additional Provision of Law 2/2021:

  • 15% of the full regional quota, if it is a municipality in an intermediate rural area with a predominance of agricultural activity, with a population of less than 2,000 inhabitants, which has lost population during the five years prior to January 1, 2021.

Requirements for applying the deduction

  • Taxpayers must have their habitual residence in one of the municipalities included in the following areas:

    a) The sparsely populated areas referred to in article 12 of Law 2/2021 , of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha

    According to article 12 of Law 2/2021, those groups of municipalities or population centres made up mainly of small municipalities, with a combined population density of less than 12.5 inhabitants per km2, high rates of ageing and intense population loss, with significant geographical isolation from municipalities with more than 30,000 inhabitants, a high percentage of land used for forestry, and a high significance of agricultural activity, will be classified as sparsely populated areas.

    Taking into account the degree of depopulation, the following categories of sparsely populated areas are established:

    1. Areas of intense depopulation : Those groups of municipalities with a density greater than 8 inhabitants per km2.

    2. Areas of extreme depopulation : Those groups of municipalities with a population density of less than 8 inhabitants per km2.

    Note: For the application of this deduction, the population of the municipalities will be taken as that which, according to their respective municipal register, they had on January 1 of each year.

    For the purposes indicated in the previous paragraph, population variations with respect to the 2021 municipal register that entail a reduction or non-application of the deductions that are applicable in accordance with it will not be taken into consideration. In such cases, these deductions may continue to be applied under the conditions and amounts that are appropriate according to the population of the aforementioned municipal register.

    However, in exceptional cases where one of the spouses resides in an area that gives rise to the right to the deduction and the other does not, or where the spouses reside in municipalities included in different rural areas, the amount of the deduction in joint taxation will be the sum of the deductions corresponding to each of the taxpayers included in that declaration.

    List of sparsely populated areas

    See Decree 108/2021, of October 19, which determines the rural areas of Castilla-La Mancha , in accordance with the typology established in article 11 of Law 2/2021 of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha ( DOCM 10-25-2021).

    b) The areas at risk of depopulation referred to in article 13 of Law 2/2021 , of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha

    According to article 13 of Law 2/2021, those groups of municipalities or population centers with a population density of less than 20 inhabitants per km will be classified as areas at risk of depopulation.2, but greater than 12.5 inhabitants per km2, high rates of ageing and a negative evolution of its population, with medium or low accessibility compared to municipalities with more than 30,000 inhabitants, with a high significance of agricultural employment, with more than 75% of its population residing in municipalities with less than 2,000 inhabitants, with both agricultural and forestry land uses.

    List of areas at risk of depopulation

    You can check if your municipality is included in one of the indicated areas in the following link: Municipalities

    c) Intermediate rural areas with a predominance of agricultural activity, with a population of less than 2,000 inhabitants, which have lost population during the five years prior to January 1, 2021.

    Article 14 of Law 2/2021, of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha defines intermediate rural areas as "those groupings of municipalities or population centers, with a population density greater than 20 inhabitants per km2 and less than 50 inhabitants per km2, outside the direct area of influence of urban areas and average accessibility to them, with a population density around the regional average, stable or increasing population and with more than 75% of its population residing in municipalities with more than 2,000 inhabitants.

    The following categories of intermediate zones are distinguished, taking into account economic activity:

    1. With a predominance of agricultural activity.

    2. With diversified economic activity.

    In accordance with the provisions of the Sixth Additional Provision of Law 2/2021, only municipalities with a predominance of agricultural activity, with a population of less than 2,000 inhabitants, which have lost population during the five years prior to January 1, 2021, will be able to benefit from the deduction in these intermediate rural areas, in accordance with the provisions of the Sixth Additional Provision of Law 2/2021, of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha.

    List of intermediate rural areas with predominance of agricultural activity, with population less than 2,000 inhabitants

    See the Agreement of 02/07/2023 , of the Governing Council, which determines the municipalities to which the Sixth Additional Provision of Law 2/2021, of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha applies ( DOCM of 02-10-2023)

    That the taxpayer meets the requirement of “effective stay” referred to in article 5 of Law 2/2021, of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha.

    According to article 5 of Law 2/2021, an “effective stay in a municipality of Castilla-La Mancha” is considered to be one that can be accredited with the certification of the respective municipal registers and that coincides with the following indicators of permanence in the municipality:

    – Health card certification, assigned to the health center assigned in the basic health zone of the municipality where you are registered.

    – Certification, where applicable, that minors of compulsory school age have an enrolment in one of the educational centres in the reference town, for the municipality where they are registered.

Loss of the right to the deduction made

Failure to comply with any of the indicated requirements entails the loss of the tax benefit, and the taxpayer must integrate the deducted amounts into the full autonomous quota for the year in which the failure occurs, plus any accrued late payment interest.