For obtaining income derived from housing leases, whose income does not exceed the reference price of private rentals in the Valencian Community (lessor's deduction)

Regulations: Art. 4.One.j) Law 13/1997, of December 23, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Amount of deduction

5% of the gross income in the tax period, provided that the requirements indicated below are met.

Requirements and other conditions for the application of the deduction

• That the total income derives from housing lease contracts , in accordance with urban leasing legislation, initiated during tax period .

  According to the provisions of article 2 of Law 29/1994, of November 24, on Urban Leases, a residential lease is considered when the lease falls on "a habitable building whose primary purpose is to satisfy the permanent housing need of the tenant."

  Article 3 of the same law provides that "a lease for use other than housing is considered to be a lease that, falling on a building, has as its primary purpose a use other than that established in the previous article." He added that "in particular, urban property leases held for a seasonal period, whether summer or any other, will be considered as such."

  Therefore, the deduction will not be applicable to income from seasonal rentals and all those cases in which the rented property does not constitute the habitual or permanent residence of the tenant, a requirement that, in accordance with Law 29/1994, defines the legal nature of the housing rental contract.

• In the event that the property had been previously rented for a period of less than three years, the tenant does not match the person established in the previous contract .

  If the previous contract lasted more than three years, the deduction can be applied regardless of whether the new tenants coincide with the previous ones or not.

  If the previous contract lasted less than three years, the deduction can only be applied if none of the new tenants coincide with the previous ones.

• That the agreed rent not exceed the reference price for private rentals in the Valencian Community.

  In order to determine whether the agreed monthly rent exceeds the reference price for private rentals, the expenses and taxes, other than supplies, which according to the contract are the responsibility of the tenant and which, consequently, have been passed on to him, such as property tax, community of owners, etc., must also be included as part of the income generated by the rental contract.

• That the deposit of the security ## in favor of the Generalitat.

Maximum deduction base

The maximum annual base for deduction is set at euros.

Note: Please note that for taxpayers who died before October 28, 2022 , the maximum deduction base will be 3,000 euros.