Reduced net yield

The reduced net return on real estate capital corresponding to each of the properties producing said returns is, in general, the result of applying to the net return the reductions that correspond to those previously mentioned and which are then represented in the following diagram:

(=) PREVIOUS NET YIELD

(-) Reduction for housing rental (60 %), only applicable:

In the case of properties intended for housing.
For positive net income that has been calculated by the taxpayer in a self-assessment filed before a data verification, limited verification or inspection procedure has been initiated that includes the verification of such income.

(-) Reduction of returns with a generation period of more than two years or obtained in a clearly irregular manner when they are imputed in a single fiscal year (30%).

Maximum reduction base: 300,000 euros.
Transitory rules: fractional perception of the returns prior to 1-1-2015.

(=) REDUCED NET YIELD

When the purchaser, assignee, lessee or sub-lessee of the real estate or the real right that falls on it is a family member, in the terms previously discussed, the reduced net income will be the greater of the following two amounts:

Net income corresponding to the leasing or transfer of the property, once the reductions arising from those previously mentioned have been applied to it, where applicable.
The minimum computable income for the aforementioned property in the case of kinship.

Example:

Mr. SPT has had a commercial premises and two homes of its property rented throughout the year, with the respective gross income and deductible expenses for the year 2023 amounting to the following amounts:

Information	Housing 1	Housing 2	Premises
Gross income	6.865	7,980	10.230
reparation and conservation	2.150	9.210	5.890
Taxes, surcharges and fees ( IBI )	500	900	350
Community of owners	580	1.385	540
Amortization of real estate ^(*)	200	300	320

^(*) The amounts allocated to the amortization of the properties have been calculated by applying 3% of the cadastral value of the properties. ^(Back)

Determine the reduced net return on real estate capital for the year 2023.

Solution:

1. Determination of the net return on real estate capital from leased properties.

Information	Housing 1	Housing 2	Premises
Gross income	6.865	7,980	10.230
reparation and conservation	2.150	7,980 ⁽¹⁾	5.890
Taxes, surcharges and fees (IBI)	500	900	350
Community of owners	580	1.385	540
Amortization of real estate	200	300	320
Net performance	3.435	–2.585	3.130

2. Reduction in income from leasing of dwellings 1 and 2:

Information	Housing 1	Housing 2
Net performance	3.435	–2.585
Reduction of article 23.2 Law IRPF	2.061	0 ⁽²⁾
Reduced net yield	1.374	–2.585

3. Sum of reduced net returns on real estate capital: [1,374 + (–2,585) + 3,130] = 1,919

Notes to the example:

⁽¹⁾ The total amount to be deducted for the repair and maintenance costs of "home 2" cannot exceed the amount of the gross income obtained from said home. The excess (9,210 – 7,980 = 1,230) may be deducted in the following four years, without the deduction being able to exceed, together with the expenses for these same concepts corresponding to each of these years, the amount of the gross income obtained from the rental of said property. ^Return)

⁽²⁾ The 60% reduction applies in the event that the net income derived from the property is positive, so in this case, as the net income derived from the property or right is negative, the reduction will not be applicable. ^(Back)