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Practical manual for Income Tax 2023.

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

Regulations: Art. 4 quater 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

  • 75 percent of the expenses paid by the taxpayer during the year in the form of credit insurance premiums that cover all or part of the non-payment of rents to which the taxpayer is entitled by reason of the leasing of one or more real estate properties, located in the Balearic Islands, to a third party for housing purposes.

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

Requirements for applying the deduction

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

  • That the deposit of the security 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 taxpayer declare in IRPF the income derived from the rental income of the home as income from real estate capital.