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Practical Income Manual 2020.

B. Deduction for the lessor

Note: This deduction is not applicable in the case of taxpayers who died before December 31, 2020.

Amount and limit of the deduction

  • 50 per 100 of the full regional quota that corresponds to the liquidable base derived from the net returns of real estate capital reduced by the reduction for leasing of properties intended for housing and, where applicable, in the reduction for returns with a generation period of more than two years or obtained in a notoriously irregular manner over time, in the terms provided for in sections 2 and 3 of article 23 of the Personal Income Tax Law , respectively.

    See in this regard Chapter 4 of this Manual dedicated to "Returns on real estate capital".

  • The maximum amount of the deduction may not exceed:

    • - 600 euros annually in individual taxation and
    • - 1,200 euros in joint taxation

Requirements and other conditions for the application of the deduction

  • That the home being rented is located in rural area at risk of depopulation .

    It is understood that this requirement is met in those municipalities or town halls in which any of the following objective criteria are met:

    1. Population less than 2,000 inhabitants.
    2. Population density less than 12.5 inhabitants per square kilometer.
    3. Aging rate greater than 30 percent.

    For these purposes, Order HAC /02/2020, of February 3, which approves the list of municipalities that have the status of Rural Area of Cantabria at Risk, must be taken into account. of Depopulation for the fiscal year 2020.

  • That the home that is rented constitutes or will constitute the habitual residence of the tenant .

    The concept of habitual residence will be that established by the twenty-third Additional Provision of the Personal Income Tax Law and article 41 bis of its Regulations.

  • That the lease does not constitute an economic activity for the lessor.

  • That the landlord's habitual residence is also located in the same area at risk of depopulation .

    To determine the concept of habitual residence in the territory of an Autonomous Community the provisions of article 72 of the Personal Income Tax Law will be followed.