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Practical Income Manual 2020.

Example: deduction for rent of habitual residence

Don MAV He has rented his habitual residence since 2006 and has been deducting this concept in Personal Income Tax . In fiscal year 2020, the landlord paid the amount of 6,900 euros per year for this concept.

The general tax base of the taxpayer in the 2020 financial year, who pays taxes individually, has amounted to 21,500 euros and the tax base of savings to 600 euros.

Determine the amount of the deduction for renting the primary residence in fiscal year 2020.


Amounts paid for the rent of the habitual residence = 6,900

Maximum base of the deduction :

As your tax base is greater than 17,707.20 euros, the maximum deduction base will be determined by subtracting from 9,040 euros the result of multiplying the difference between the tax base and 17,707.20 euros per year by 1.4125.

That is to say: 9,040 – [1.4125 x (22,100 – 17,707.20)] = 2,835.17

Deduction amount: (2,835.17 x 10.05%) = 284.93

The amount of the deduction thus determined will be recorded in boxes [0562] and [0563] of the declaration, entering in each of them 50 percent of the total deduction.

That is, 284.93 x 50% = 142.46.