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Form 100. Personal Income Tax Return 2024

10.5.26. For the placing of homes on the rental market for habitual residences

Amount 

Owners or usufructuaries of real estate for which they have imputed real estate income during the entire previous tax period, in accordance with the Personal Income Tax Law, may deduct for each property.

Taxpayers who acquire real estate by any means may also apply this deduction, provided that it was not leased in the previous tax period and, within a maximum period of six months from the acquisition, they lease it.

Requirements and conditions

  • The properties must be located in the Canary Islands and intended for residential rental, in accordance with the provisions of Article 2 of Law 29/1994, of November 24, on urban rentals.

  • Leasing cannot constitute an economic activity.

  • The deduction will be unique for each property and applicable in the first tax period in which the property is rented.

  • The amount of the deduction will be prorated based on the percentage of ownership or usufruct of the property.

  • The lease must have an effective duration of at least three years.

    However, the right to the deduction will not be lost if the lease agreement is for a period of less than three years when the property becomes subject to a rental expectation and is again subject to a new residential lease agreement within six months of the end of the previous agreement, provided that the sum of the duration of both lease agreements is at least three years.

  • The tenant of the dwelling may not be the taxpayer's spouse, common-law partner, or a relative, by blood or marriage, up to the third degree inclusive.

  • Each taxpayer will apply this deduction to maximum of properties, intended for residential rental, excluding garages and storage rooms. For the sole purpose of calculating this number of properties, each one will be counted as a unit, regardless of the percentage of ownership.

  • Failure to meet the requirements established in this article to qualify for the deduction will result in the taxpayer having to include the amount deducted in their personal income tax for the year in which they failed to comply, and the corresponding late payment interest will be charged.

Completion

For each property, the percentage of ownership or usufruct of the property and the cadastral reference will be recorded. If the property has no reference, check the box provided for that purpose.