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Practical Income Manual 2021.

For rental of main residence

Regulations: Art. 4.One.n), Four and Fifth Law 13/1997, of December 23, which regulates the regional section of the Personal Income Tax and other transferred taxes, of the Valencian Community .

Amounts and maximum amounts of the deduction

  • 20 percent , with a limit of 700 euros .

  • 25 percent with a limit of 850 euros if the tenant meets one of the of the following conditions:

    1. Have an age equal to or less than 35 years.

    2. Being physically or sensory disabled, with a degree of disability equal to or greater than 65 percent, or mentally disabled, with a degree of disability equal to or greater than 33 percent.

    3. Be considered a victim of gender violence according to the provisions of Law 7/2012, of November 23, of the Generalitat, comprehensive against violence against women in the area of the Valencian Community.

  • 30 percent with a limit of 1,000 euros , if it meets two or more of the above conditions.

  • The maximum amount of deduction will be prorated by the number of days in which the lease remains in force within the tax period and in which the personal circumstances required for the application of the different percentages are met. of deduction.

Note: In order to be able to make this deduction, the taxpayer, as a tenant, must pay amounts for the rent of his or her habitual residence during the tax period. Therefore, in the case of marriage, whatever its economic regime, only the amounts paid by the spouse who signed the lease contract will be deductible, without prejudice to the fact that such contract has internal effects between the spouses.

Requirements and other conditions for the application of the deduction

  • The date of the lease contract is after April 23, 1998 and its duration is equal to or greater than one year.

    Remember: To address the impact of Covid-19, the requirement relating to the obligation of the taxpayer, as tenant, to present the corresponding self-assessment of the Property Transfer Tax and documented legal acts derived from the rental contract of the habitual residence

  • That it involves the lease of the taxpayer's habitual residence, effectively occupied by him. For these purposes, it will conform to the concept of habitual residence included in the state regulations regulating Personal Income Tax .

  • That, for at least half of the tax period, neither the taxpayer nor any of the members of his family unit are owners , individually or jointly , full ownership or a real right of use or enjoyment, of another distant home less than 100 kilometers from the rented home.

    In the case of a female victim of gender violence, for the purposes of applying this deduction, the aggressor spouse who is not legally separated will be considered not to be part of the family unit. Nor will the property that the taxpayer shared with the aggressor be counted as habitual residence.

    Precision: 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.

  • That the 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 taxable base and the savings taxable base or , boxes [0500 ] and [0510] of the declaration, does not exceed the following quantities:

    • - 25,000 euros in individual declaration.

    • - 40,000 euros in joint declaration.

  • When two or more taxpayers filing tax are entitled to the application of this deduction for the same home , the limit will be prorated between them equally.

Application of the quantitative limits of the deduction according to the taxable base :

  • The maximum limits of the deduction (700, 850 or 1,000 euros, as appropriate) will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base is less than 23,000 euros, in individual taxation, or less than 37,000 euros, in joint taxation.

  • When the sum of the general taxable base and the taxable base of the taxpayer's savings is between 23,000 and 25,000 euros , in individual taxation, or between 37,000 and 40,000 euros , in joint taxation, the amounts and limits of the deduction will be the following:

    1. In individual taxation, the result of multiplying the maximum limit of the deduction (700, 850 or 1,000 euros as appropriate) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 2,000 the difference between the sum of the general taxable base and the taxpayer's savings and 23,000)

    2. In joint taxation , the result of multiplying the maximum limit of the deduction (700, 850 or 1,000 euros as appropriate) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 2,000 the difference between the sum of the general taxable base and the taxpayer's savings and 37,000)

    The proration of the maximum limits of the deduction must only be carried out when there is more than one person who, by submitting a declaration, can apply the deduction for the same home by meeting all the requirements for this, including the maximum amount of the taxable base, although it does not apply it effectively. Therefore, people who do not submit a declaration or those who have a tax base greater than that required are not taken into consideration for the purposes of proration.

  • The application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that entitles its application to be made by credit or debit card, bank transfer, nominative check or deposit into accounts in credit institutions .

    The requirement for this requirement is established in Additional Provision sixteen of Law 13/1997, of December 23, which regulates the regional section of Personal Income Tax and other transferred taxes. 

Compatibility

This deduction is compatible with the one discussed below "For renting a home as a result of carrying out an activity, on one's own account or as an employee, in a different municipality."

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.