Supplies

Personal income tax on utility costs for the taxpayer's habitual residence that is partially affected by the development of economic activity

Regulations: Art. 30.2.5.b) Law Income Tax

From 1 January 2018, when the taxpayer partially uses his or her habitual residence for the development of his or her economic activity, the costs of supplies for said residence, such as water, gas, electricity, telephone and Internet, will be deductible in the percentage resulting from applying 30% to the proportion between the square metres of the residence used for the activity and its total surface area, unless a higher or lower percentage is proven.

Prior to the amendment made by Article 11 of Law 6/2017, of October 24, on Urgent Reforms of Self-Employment (BOE of the 25th), only expenses arising from the ownership of the home, such as amortizations, IBI, community of owners, etc., were considered fully deductible in these cases, in proportion to the part of the home affected to the development of the activity and its percentage of ownership in the property, unless the taxpayer was a tenant of the home, in which case he could deduct the expense corresponding to the income paid for the rental of the home in proportion to the part exclusively affected by the economic activity in relation to the entirety of the same. On the contrary, it was required that the expenses derived from supplies (water, electricity, heating, telephone, Internet connection, etc.) be used exclusively for the exercise of the activity, and the same apportionment rule that was applied to the expenses derived from the ownership or rental of the home could not be used in relation to these.