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Practical Income Manual 2021.

For rental of main residence

Regulations: Articles 8 and 18.1 and 4.c) Text Recast of the legal provisions of the Community of Madrid regarding taxes transferred by the State, approved by Legislative Decree 1/2010, of October 21.

Amount and maximum limit of the deduction

  • 30 percent of the amounts paid for the rental of the habitual residence in the tax period.

    Precision: The rent to be paid for the lease contract signed by only one of the spouses is a debt that corresponds, exclusively, to the signatory himself, regardless of the internal relations that may subsequently arise within the matrimonial property regime. Therefore, the amounts paid by the spouse who does not appear in the contract do not give rise to the right to said deduction for not being a tenant, regardless of the matrimonial property regime. See in this regard the Supreme Court Ruling number 220/2009, of April 3 (Civil Chamber), issued in the appeal number 1200/2004 (ROJ: STS 2464/2009).

  • The maximum deduction limit will be 1,000 euros , both in individual and joint taxation.

Requirements and other conditions for the application of the deduction

  • Taxpayer age.

    The taxpayer must be less than 35 years of age on the tax accrual date (normally December 31).

    However, the deduction may also be applied if the taxpayer is over 35 years old and under 40 years old as long as, during the tax period, he or she has been unemployed and has borne family responsibilities.

    Definitions:

    - Unemployment situation : It will be understood that the taxpayer has been unemployed when he has been registered as a job seeker in the Employment Offices of the Community of Madrid for at least 183 days within the tax period.

    - Family responsibilities : It will be understood that the taxpayer has borne family responsibilities when he has at least two relatives, ascendants or descendants, in his care, considered as such those for whom he has the right to the application of the minimum for ascendants or descendants .

  • Limits of the sum of the general and savings tax bases (sum of boxes [0435] and [0460] of the declaration) in order to apply the deduction.

    A double limit is required; one general one, which must be complied with by the taxpayer who intends to apply the deduction, and another specific one that must be complied with by the family unit of which he or she is a part:

    a. Taxpayer: The sum of the general tax bases and the taxpayer's savings may not exceed:

    • 25,620 euros in individual taxation .

    • 36,200 euros in joint taxation .

    b. Family unit: The sum of the general tax bases and savings of all members of the family unit of which the taxpayer may be a part may not exceed 60,000 euros.

    Rules for your application of limits to the family unit:

    • If it is a conjugal family unit (those regulated in article 82.1.1 of the Personal Income Tax Law ), the tax bases of each of the members of the unit must be added. family members integrated into it, regardless of whether or not they opt for the joint taxation regime and whether or not they are required to file a declaration.

      Thus, for each spouse, the tax base will be that corresponding to both plus those of the children (minors or judicially incapacitated adults subject to extended or rehabilitated parental authority), common or not, who cohabit with the marriage.

      In the case of joint taxation, the tax base of said declaration will be taken into account for the purposes of the established limit.

    • If it is a single-parent or non-marital family unit, only the tax bases of the members of the family unit that theoretically correspond to each taxpayer must be added, in accordance with the provisions of article 82.1.2 of the Law of Personal Income Tax : the taxpayer himself and his children (minors or judicially incapacitated adults subject to extended or rehabilitated parental authority) who live with him. And all of this, too, regardless of whether or not they choose to pay taxes under the joint taxation regime and whether or not they are required to file a return. In the case of joint taxation, the tax base of said declaration will be taken into account for the purposes of the established limit.

  • The amounts paid for the rental of the habitual residence must exceed 20 per 100 of the aforementioned sum of the taxpayer's general and savings tax bases.

  • To apply the deduction, the taxpayer must be in possession of a copy of the receipt of the deposit deposit at the Social Housing Agency of the Community of Madrid formalized by the landlord, in accordance with the provisions of article 36 of Law 29/1994, of November 24, on Urban Leases, and in Decree 181/1996, of December 5, which regulates the deposit deposit regime for leases in the Community of Madrid, or possess a copy of the complaint filed with said body for not having been given said proof by the landlord .

  • Additionally, the taxpayer at the time he expresses his intention to apply this regional deduction must, as a tenant, have settled the Tax on Property Transfers and Documented Legal Acts derived from the rental of the home, unless he is not required to submit a self-assessment for applying the bonus provided for in article 30 quater of Legislative Decree 1/2010.

    However, said intention does not have to be limited to a single moment in time and, therefore, the time limit to demand said liquidation will depend on when it is manifested. Thus, without the intention of being exhaustive, the moment in which the taxpayer who wishes to apply the deduction must have settled the tax of TPO is set at:

    • The end of the declaration period, in the case of submitting the tax return with application of the regional deduction.

    • The moment in which the taxpayer requests the rectification of a previously submitted declaration, in which the aforementioned deduction had not been included.

    • The moment in which the Tax Administration initiates the procedure to verify a declaration in which the deduction has not been included.

    Note: Taxpayers entitled to the deduction must complete the section "Additional information to the regional deduction for leasing" of Annex B.8 of the declaration in which, in addition to the data necessary to quantify the deduction, the must be stated. NIF ##1##/ NIE of the landlord of the home and, if applicable, that of the second landlord or, where applicable, if he has registered a NIF from another country, an X will be marked, respectively, in the corresponding boxes.