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Practical manual for Income Tax 2023.

For rental of housing in the territory of the Balearic Islands derived from the temporary transfer of residence for work reasons

Regulations: Art. 4 quinquies 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 expenses paid by the taxpayer during the year in the form of rental income from housing due to the temporary transfer from his island of residence to another island in the Balearic archipelago within the scope of the same employment relationship .

  • The maximum amount of this deduction will be 440 euros per year per taxpayer who meets the requirements .

Requirements for applying the deduction

  • That it is the lease of a property intended for housing of the taxpayer and effectively occupied by this .

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

    • - 33,000 euros in individual taxation.

    • - 52,800 euros in joint taxation.

  • That the taxpayer identifies the landlord in the tax self-assessment.

    Important: Taxpayers entitled to the deduction must state the NIF / NIE of the landlord of the home and, if they have stated a NIF from another country, an X will be marked in the corresponding box.

  • That the taxpayer can documentarily justify to the tax authority the expense constituting the basis of the deduction and the rest of the requirements for the deduction.

    Acceptable documents for payment (receipt, invoice, certificate), the rental contract, proof of deposit of the security deposit at IBAVI and the company certificate indicating that the subject's workplace has been moved to another island will be accepted for this purpose.

  • That the temporary transfer does not exceed three years in duration .

Particularities in case of joint taxation

In the case of joint taxation , the deduction will be applicable to each of the taxpayers who move their residence to another island in the Balearic archipelago within the scope of the same employment relationship, when they meet the requirements established in the previous section.

In the case of marriages under a community property regime and only one of the spouses has moved his or her residence to another island within the scope of an employment relationship, the deduction may only be applied by said spouse, although for half of the amounts paid.