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Practical manual for Income Tax 2020.

For leasing of habitual residence linked to certain transactions of payment in kind

Regulations: Art. 15 bis Revised text of the current legal provisions issued by the Autonomous Community of the Canary Islands on transferred taxes , approved by Legislative Decree 1/2009, of April 21.

Amount and maximum limit of the deduction

  • 25 percent of the amounts paid during the corresponding fiscal year, for the rental of the habitual residence.
  • The maximum deduction amount will be 1,200 euros per year , both in individual and joint taxation.

Requirements and other conditions for the application of the deduction

  • The deduction will only be applicable in the case of the transfer of the habitual residence by its owner in favor of the creditor financial institution, or a real estate subsidiary of its group, because he or she cannot meet the payment of the loans or mortgage credits granted for its acquisition, provided that the transferor continues to occupy the residence through a lease contract with an option to purchase signed with the financial institution.

    See in this regard the cases of leasing linked to certain transactions of payment in kind contemplated in article 35-bis of the Revised Text of the legal provisions in force issued by the Autonomous Community of the Canary Islands on transferred taxes, approved by Legislative Decree 1/2009.

  • That the sum of the general tax base and the savings tax base, boxes [0435] and [0460] of the declaration corresponding to the year in which the right to the deduction originates, is not greater than :

    • - 24,000 euros per year in individual taxation .
    • - 34,000 euros per year in joint taxation .

Note: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction for the rental of a habitual residence linked to certain transactions involving payment in kind in Aragon and the Canary Islands" in Annex B.7 of the declaration.