For leasing of real estate in the territory of the Balearic Islands intended for housing (landlord deduction)
Regulations: Art. 4 quater of the Consolidated Text of the Legal Provisions of the Autonomous Community of the Balearic Islands regarding Taxes Transferred by the State, approved by Legislative Decree 1/2014, of June 6.
Amount and maximum limit of the deduction
- 75 per 100 of the expenses paid by the taxpayer during the year for credit insurance premiums that fully or partially cover the non-payment of income to which the taxpayer is entitled due to the lease of one or more real estate properties, located in the Balearic Islands, to a third party intended for housing.
- The maximum amount of this deduction will be 400 euros per year in both individual and joint taxation .
Requirements for applying the deduction
- That the duration of the housing lease contract with the same tenant is equal to or greater than one year .
- That the deposit of the deposit referred to in article 36.1 of Law 29/1994, of November 24, on Urban Leases, has been constituted in favor of the Balearic Institute of Living place.
- That the taxpayer declare in the personal income tax the income derived from the rental income of the home as income from real estate capital.