For leasing of habitual residence in the territory of the Balearic Islands in favor of certain groups

Regulations: Art. 3 bis Revised 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

• 15 percent of the amounts paid in the tax period for the rental of the habitual residence.

  In the case of marriage, regardless of the marital economic regime, only the amounts paid by the spouse who signed the lease contract will be deductible and, consequently, the amounts paid by the spouse who does not appear in the contract do not give the right to said deduction because he or she is not the tenant. See in this regard Supreme Court Ruling No. 220/2009, of April 3 (Civil Chamber), issued in appeal for cassation no. 1200/2004 (ROJ: STS 2464/2009).

• The maximum deduction amount will be 440 euros .

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

Requirements and other conditions for the application of the deduction

• That the taxpayer meets any of the following circumstances :

  • That on the date of accrual of the tax is under 36 years of age .

  • That the person has a degree of physical or sensory disability equal to or greater than 65% or with a degree of mental disability equal to or greater than 33% .

    Regarding the degrees of disability, see the first Additional Provision of the Revised 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.

  • That it is the father or parents who live with the child or children subject to parental authority and who make up a large family in the terms established in article 6 of Law 8/2018, of July 31, on support for families.

    For these purposes, large families are those determined by Law 40/2003, of November 18, on the Protection of Large Families, as well as single-parent families with a child with a recognized disability of 33% or more.

  • That it is the father or parents who live with the child or children subject to parental authority and who form a single-parent family with two or more sons or daughters as provided for in article 7.7 of Law 8/2018, of July 31, on support for families. 

    According to sections 1 and 2 of article 7 of Law 8/2018, of July 31, on family support, single-parent families are considered:

    • Single-parent families are those made up of one or more sons or daughters who meet the requirements established in section 3 of the aforementioned article 7 of Law 8/2018 and who are financially dependent on a single parent, guardian, foster parent or adoptive parent, with whom they live.

    • In addition, the following are also considered single-parent families:

      a) The family in which the parent with dependent children lives at the same time with another person or persons with whom he or she has no marital relationship or stable partnership, in accordance with civil law.

      b) The family in which the parent who has custody of the children does not receive any pension for the maintenance of these children established by court order and has filed the corresponding civil or criminal complaint or claim.

      c) The family in which the parent with dependent children has suffered abandonment of the family by the other parent or cohabitant.

• That it is the lease of the taxpayer's habitual residence , actually occupied by the taxpayer, and that the duration of the lease contract is equal to or greater than one year.

• That the deposit of the security 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 Housing Institute.

• That, for at least half of the tax period, neither the taxpayer nor any of the members of his/her family unit are the owners, of full ownership or of a real right of use or enjoyment, of another dwelling less than 70 kilometres from the rented dwelling , except in cases where the other dwelling is located outside the Balearic Islands or on another island.

  Clarifications:

  • The concept of family unit is established in article 82 of the Personal Income Tax Law and is examined in Chapter 2 of this manual

  • The expression that they are holders of full ownership or a real right implies that the deduction is not applicable if the taxpayer or any other member of the family unit holds any percentage of full ownership or real right of use or enjoyment.

  • The requirement that “for at least half of the tax period there is no full ownership or a real right of enjoyment of another dwelling less than 70 km from the rented dwelling, except...” must be met, both in individual and joint taxation and, both by the taxpayer and by the other members of the family unit, if one exists.

• That taxpayer is not entitled in the same tax period to any deduction for investment in primary residence.

• That the sum of the general tax base and the savings tax base of the taxpayer boxes [0435] and [0460] of the declaration , does not exceed the following amounts:

  • - 33,000 euros in individual taxation.

  • - 52,800 euros in joint taxation .

  Attention: Please note that, as a result of the various modifications that article 3 bis has undergone during 2022, we find the following quantitative limits:

  • For taxpayers who died between January 1 and March 30, 2022, the sum of the general and savings tax bases (boxes [0435] and [0460] ) may not exceed:

    1. In general: 20,000 euros in individual taxation.

    2. For members of a large or single-parent family: 26,000 euros in individual taxation.

  • For taxpayers who died between March 31 and December 30, 2022 , the sum of the general and savings tax bases (boxes [0435] and [0460] ) may not exceed: 

    1. In general: 22,000 euros in individual taxation.

    2. For members of a large or single-parent family: 28,600 euros in individual taxation.

  • For the rest of the taxpayers, l the sum of the general and savings tax bases (boxes [0435] and [0460] ) may not exceed:  33,000 euros in the case of individual taxation and 52,800 euros in the case of joint taxation.

• In the case of joint taxation, only taxpayers who are part of the family unit and who meet the established conditions and for the amount of the sums actually paid by them may benefit from this deduction.

Note: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction for rent" in Annex B.8 of the declaration in which, in addition to the data necessary to quantify the deduction, the NIF/NIE of the landlord of the home must be stated and, if applicable, of the second landlord or, if applicable, if they have stated a NIF from another country, an X must be marked in the corresponding box.