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Practical Income Manual 2022.

For leasing of real estate in the territory of the Balearic Islands intended for housing (landlord deduction)

Regulations: Art. 4 quater Consolidated Text of the Legal Provisions of the Autonomous Community of the Balearic Islands on Taxes Transferred by the State, approved by Legislative Decree 1/2014, of June 6

Amount and maximum limit of the deduction

  • 75 per 100 of the expenses paid by the taxpayer during the year for credit insurance premiums that fully or partially cover the non-payment of income to which the taxpayer is entitled due to the lease of one or more real estate properties, located in the Balearic Islands, to a third party intended for housing.

  • The maximum amount of this deduction will be 440 euros per year in both individual and joint taxation .

    Note: Please note that for taxpayers who died before December 31, 2022, the maximum amount of this deduction will be 400 euros.

Requirements for applying the deduction

  • That the duration of the housing lease contract with the same tenant is equal to or greater than one year .

  • That the deposit of the deposit referred to in article 36.1 of Law 29/1994, of November 24, on urban leases, has been constituted in favor of the Balearic Institute of Living place.

  • That the taxpayer declare in the personal income tax the income derived from the rental income of the home as income from real estate capital.