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Practical Income Manual 2020.

For leasing of habitual residence in the territory of the Balearic Islands in favor of certain groups

Regulations: Art. 3 bis 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

  • 15 per 100 of the amounts paid in the tax period for the rental of the habitual residence.

    In the case of marriage, regardless of their matrimonial property regime, only the amounts paid by the spouse who signed the rental contract will be deductible and, consequently, the amounts paid by the spouse who does not appear in the contract do not give the right to said deduction. for not being a tenant. See in this regard Supreme Court Ruling no. 220/2009, of April 3.

  • The maximum deduction amount will be 400 euros .

Requirements and other conditions of the deduction

  • That any of the following circumstances occur in the taxpayer:

    • That on the date of tax accrual is under 36 years of age .
    • That it is a person with a degree of physical or sensory disability equal to or greater than 65 percent or with a degree of mental disability equal to or greater than 33 percent .

      Regarding the degrees of disability, see the first Additional Provision 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.

    • That it is the father or parents who live with the child or children subject to parental authority and who make up a large family .
  • That it is the lease of the taxpayer's habitual residence , effectively occupied by the taxpayer, and that the duration of the lease contract is equal to or greater than one year.
  • That the deposit of the bond 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, for at least half of the tax period, neither the taxpayer nor any of the members of his family unit are owners, of full ownership or of a real right of use or enjoyment, of another home less than 70 kilometers from the rented home, except in cases where the other home is located outside the Balearic Islands or on another island.

    Precisions:

    • The concept of family unit is established in article 82 of the Personal Income Tax Law and is examined in Chapter 2 of this Manual

    • The expression that they are holders of full ownership or a real right implies that it is not appropriate to apply the deduction if the taxpayer or any other member of the family unit holds any percentage in full ownership or in real right of use or enjoyment.

    • The requirement that "during at least half of the tax period there is no full ownership or a real right of enjoyment of another home less than 70 km from the rented home except..." must be met, both in individual and joint taxation and, both by the taxpayer and by the rest of the members of the family unit, in the event that it exists.

  • That taxpayer does not have the right in the same tax period to any deduction for investment in primary residence.
  • That the sum of the general tax base and the tax base of the taxpayer's savings boxes [0435] and [0460] of declaration , do not exceed the following amounts:

    a) In general:

    • 20,000 euros in individual taxation.
    • 34,000 euros in joint taxation .

    b) In the case of families number sas

    • 26,000 euros in individual taxation.
    • 40,000 euros in joint taxation.
  • In the case of joint taxation, only taxpayers integrated into the family unit who meet the established conditions and for the amount of the amounts actually paid by them may benefit from this deduction.