Return on real estate property

Deductible expenses for determining net income

Doubtful balances

Article 15 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and tax matters ( BOE of 23) , reduces in the years 2020 and 2021 from six to three months the period for the amounts owed by tenants to be considered doubtful balances and can be deducted from the full returns of the capital real estate.

Likewise, the possibility is established that this period may be modified by regulation.

Reduction in rental income for renting premises to certain entrepreneurs during the 2021 tax period

Article 13 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and tax matters ( BOE of 23) , has added a new forty-ninth Additional Provision to the Personal Income Tax Law , which allows landlords other than “large holders” who have signed a rental contract for use other than housing and whose tenants use the property for the development of an economic activity, compute as a deductible expense from the real estate capital returns the amount of the reduction in the rental income that they had voluntarily agreed to as of March 14, 2020, corresponding to the monthly payments accrued. in the months of January, February and March 2021, when it comes to rentals of premises made to certain entrepreneurs, as long as the requirements demanded by the standard are met.

Amounts intended for amortization: Properties acquired free of charge

The Supreme Court in its Ruling no. 1130/2021, of September 15, has established as an interpretative criterion that, for purposes of determining the amortization applicable in the case of properties acquired free of charge by inheritance or donation, the acquisition cost satisfied will be the value of the property acquired in application of the rules on Inheritance or Donation Tax or its value verified in these liens (excluding the value of the land from the calculation), plus the expenses and taxes inherent to the acquisition that correspond to the construction and , if applicable, all of the investments and improvements made in the acquired assets.

Net Yield Reductions

Reduction for leasing of properties intended for housing

Article 3.Two of Law 11/2021, of July 9, on measures to prevent and combat tax fraud, with effect from July 11, 2021, modified article 23.2 of the Law of Income Tax to clarify the wording of the reduction for the rental of real estate used for housing, so that said reduction can only be applied to the positive net return calculated by the taxpayer in their declaration-settlement or self-assessment, without its application being applicable to the positive net return calculated during the processing of a verification procedure