Reduction for returns with a generation period of more than two years or obtained in a notoriously irregular manner over time
Regulations: Articles 26.2 Law Personal Income Tax and 21 Regulation Personal Income Tax
Reduction 30 percent
A reduction of 30 percent of the net amount of the income that is included in the general tax base 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 .
For these purposes, only the following are considered income from movable capital, obtained in a notoriously irregular manner over time, provided that, in addition, they are allocated in a single tax period:
Amounts obtained from the transfer or assignment of the lease contract.
Compensation received from the tenant or subtenant for damages or defects, in the case of leasing.
Amounts obtained from the constitution or transfer of rights of use or enjoyment for life.
Maximum amount of performance to which the reduction applies
The amount of net income to which the reduction will be applied may not exceed the amount of 300,000 euros per year .
In the event that several irregular returns of the same nature are obtained, and their amount exceeds the limit of 300,000 euros of the maximum amount on which to apply the 30% reduction, the maximum reduction will be distributed proportionally among all the returns of that nature.
Transitory rules: Income received in fractions before January 1, 2015
Regulations: Transitional provision twenty-fifth Law IRPF
Income from movable capital, with a generation period of more than two years, that was received in fractions prior to January 1, 2015, with the right to apply the reduction of article 26.2 of the Personal Income Tax Law in its wording in force on December 31, 2014, may continue to apply the reduction due to irregularity provided for in the aforementioned article, with the current reduction of 30 percent and the limit of the maximum reduction base of 300,000 euros, to each of the fractions that are charged from 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.