Returns with a generation period of more than two years or obtained in a notoriously irregular manner over time
Regulations: Articles 23.3 Law Personal Income Tax and 15 Regulations
Yields to which it is applied and reduction percentage
Once the reduction for leasing of properties used for housing has been carried out, if applicable, the reduction of 30 per 100 of the resulting net income may be made in the following cases:
Net income whose generation period is greater than two years, provided that they are attributed to a single tax period.
Net income obtained in a notoriously irregular manner over time, when imputed in a single tax period .
They are considered returns on real estate capital obtained in a notoriously irregular manner over time. exclusively the following:
Amounts obtained from the transfer or assignment of the lease contract for business premises.
In cases of transfer or assignment of the lease contract for business premises, it must be specified that the amount received by the owner of the property, that is, the owner or the holder of a right to enjoy it, is considered performance. of real estate capital obtained in a notoriously irregular manner over time.
However, the amount received by the tenant for the transfer or assignment of the lease contract, as he does not hold any real right over the property, does not constitute a return on real estate capital, but rather capital gain. See the example contained in Chapter 11 of determining the capital gain in the cases of transfer or assignment of the lease contract for business premises .
Compensation received from the tenant, subtenant or assignee for damages or defects to the property.
Amounts obtained from the constitution or transfer of rights of use or enjoyment of a lifetime nature.
Maximum amount of performance to which the reduction applies
Once the reduction for housing rental has been applied, if applicable, the amount of the resulting net income to which the 30% reduction will be applied may not exceed the amount of 300,000 euros per year .
Keep in mind that in the event that there are positive and negative irregular returns, the maximum base of the reduction will be its algebraic sum.
In the event that several irregular returns of the same nature are obtained, and that their amount exceeds the limit of 300,000 euros of maximum amount on which to apply the 30% reduction, the maximum reduction will be distributed proportionally among all returns of that nature.
Income received in installments before January 1, 2015 Transitional regime
Regulations: Twenty-fifth transitional provision. 3 Law Personal Income Tax
The income that was received in fractions prior to January 1, 2015 with the right to the application of the reduction for income with a generation period greater than two years or obtained in a notoriously irregular manner in the time provided for in article 23.3 of the Personal Income Tax Law , in its wording in force on December 31, 2014, may apply the current reduction of 30 percent with the limit of the maximum reduction base of 300,000 euros, to each of the fractions that are imputed as of January 1, 2015, provided that the quotient resulting from dividing the number of years of generation, computed from date to date, by the number of tax periods of fractionation, is greater than two .
However, in the case of income derived from commitments acquired prior to January 1, 2015 that were scheduled to begin to be collected in fractions in tax periods beginning on that date, the replacement of the form of collection initially agreed upon for its collection in a single tax period will not alter the beginning of the yield generation period.