7.3.1.4. Reduction for housing rentals
In the case of leasing of real estate intended for housing , the positive net income will be reduced:
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Contracts signed until 05/26/2023: 60%
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Contracts signed since 05/26/2023: The following requirements must be met at the time of entering into the lease agreement, and the reduction will be applicable as long as they continue to be met.
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90% when the same landlord has entered into a new lease agreement for a home located in an area with a stressed residential market, in which the initial rent has been reduced by more than 5% compared to the last rent of the previous lease agreement for the same home, once the annual update clause of the previous agreement has been applied, where applicable.
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70% when the requirements indicated in letter a are not met. above, any of the following circumstances occur:
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The taxpayer must have rented the property for the first time, provided that it is located in an area with a stressed residential market and the tenant is between 18 and 35 years old. When there are several tenants in the same dwelling, this reduction will be applied to the portion of the net income that proportionally corresponds to the tenants who meet the requirements set forth in this letter.
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When the tenant is a Public Administration or non-profit entity to which the special regime regulated in Title II of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, applies, which allocates the dwelling to social rental with a monthly rent lower than that established in the rental aid program of the state housing plan, or to the accommodation of people in a situation of economic vulnerability referred to in Law 19/2021, of December 20, which establishes the minimum vital income, or when the dwelling is covered by a public housing or qualification program by virtue of which the competent Administration establishes a limitation on the rental income.
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60% when, not meeting the requirements of the previous paragraphs, the dwelling has been the subject of a rehabilitation action under the terms provided for in section 1 of article 41 of the Tax Regulations that has been completed in the two years prior to the date of the execution of the lease contract.
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50%, in any other case.
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This reduction will only apply to positive net income calculated by the taxpayer in a self-assessment filed before a data verification procedure, limited verification or inspection procedure has been initiated that includes the verification of such income.
In no case will the reduction be applicable to the portion of positive net income derived from income not included or expenses improperly deducted in the taxpayer's self-assessment and which are regularized in any of the procedures mentioned in the previous paragraph, even when these circumstances have been declared or accepted by the taxpayer during the processing of the procedure. Reductions will also not apply to lease contracts that fail to comply with the provisions of section 6 of article 17 of the Urban Leasing Law.
The reduction also applies when the tenant is a legal entity and it is proven that the property is intended as a residence for certain individuals.
In tourist rentals no reduction is applicable since they are not intended to satisfy a permanent housing need but rather to cover a temporary need.
The areas of stressed residential markets to which the provisions of this section may apply will be those listed in the resolution approved by the Ministry of Transport, Mobility and Urban Agenda, in accordance with state housing legislation.
Municipalities declared as areas of stressed residential market
In the territory of the Autonomous Community of Catalonia:
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The stressed zone will be in effect from October 10, 2024, to October 10, 2027.
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The stressed zone will be in effect from March 16, 2024, to March 16, 2027.