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Practical guide to 2021 Income Tax.

For obtaining income derived from home leases, whose income does not exceed the reference price of private rentals of the Valencian Community (deduction of the lessor)

Regulations: Art. 4.Uno.j) Act 13/1997, of 23 December, regulating the autonomous range of Personal Income Tax and other taxes transferred, from the Valencian Community.

Amount of the deduction

5% Of the full income in the tax period, provided that the requirements indicated below are met. 100

Requirements and other conditions for applying the deduction

  • Full return is derived from housing lease contracts, in accordance with the legislation on urban leases, initiated during the tax period.

    In accordance with the provisions of article 2 of Act 29/1994 of 24 November on Urban Leases, it considers housing lease when the lease falls on "a living building whose primary destination is to satisfy the tenant's permanent need for a residence."

    Article 3 of the same law states that "lease is considered for use other than housing, a lease that is charged on a building is a primary purpose and is different from that established in the previous article." In addition, "especially, this consideration will be given to leases of urban properties held by season, whether this summer or any other."

    Therefore, the deduction will not be applicable to the incomes originating from seasonal leases and all cases in which the leased property does not constitute the habitual or permanent residence of the lessee, a requirement that, in accordance with Law 29/1994, defines the legal nature of the property lease contract.

  • If the property has been leased previously for a duration of less than three years, the person concerned does not match the one established in the previous contract.

    If the previous contract had a duration of more than three years, the deduction can be applied regardless of whether the new tenants match the previous ones or not.

    If the previous contract had a duration of less than three years, the deduction can only be applied if none of the new tenants coincides with the previous ones.

  • The agreed monthly income does not exceed the reference price of the private rentals of the Valencian Community.

    For the purposes of determining whether the agreed monthly income exceeds the reference price of private rentals should be included as part of the income generated by the lease agreement also includes expenses and taxes, other than supplies, which, according to the contract, are payable by the lessee and which, in as a result, they have been passed on to them, such as the IBI, the owners'association, etc.

  • The leased property is located in the areas indicated, for this purpose, by the competent housing agency, when establishing the reference price of the private rentals of the Valencian Community.

    The prices of the reference rentals are available in the map viewer of the Valencian Community (https://visor.gva.es /). For more information, see the website: Https://calab.es/observatorio-del-habitat/precio-de-referencia/precios-del-alquiler /

  • That the deposit of the bond referred to in the legislation on urban leases has been established before the end of the tax period, in favour of the Generalitat.

Maximum deduction base

The maximum annual basis for this deduction is 3,000 euros.