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Practical Income Manual 2021.

For expenses on credit insurance premiums to cover non-payment of rent on housing leases (landlord deduction)

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

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 real estate, located in the Canary Islands, to a third party intended for housing.

  • The maximum amount of this deduction will be 150 euros per year for 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 competent body of the Administration of the Autonomous Community of the Canary Islands, within the period established for this purpose.

  • 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.

  • That the lessor is up to date with his tax obligations and indicates in his Personal Income Tax returns the NIF of the lessee and the number of cadastral reference of the leased property .

  • That the monthly amount of the lease is not greater than 800 euros .

Note: Taxpayers entitled to the deduction must complete the section "Additional information to the regional deduction for expenses on credit insurance premiums to cover non-payments of rent for housing leases (lessor's deduction) in the Canary Islands" of Annex B.9 of the statement.