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Practical manual for Income Tax 2024. Volume 2. Autonomous community deductions
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For expenses on credit insurance premiums to cover non-payment of rent on housing leases (landlord deduction)

Regulations: Art. 15 quater Consolidated Text of the current legal provisions issued by the Autonomous Community of the Canary Islands on transferred taxes , approved by Legislative Decree 1/2009, of April 21

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 fully or partially cover the non-payment of rents to which the taxpayer is entitled by reason of the leasing of real estate, located in the Canary Islands, to a third party for housing purposes.

  • The maximum amount of this deduction will be 150 euros per year, both for individual and joint taxation .

Requirements and other conditions for the application of 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 competent body of the Administration of the Autonomous Community of the Canary Islands, within the period established for this purpose.

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

  • That the landlord is up to date with his tax obligations and indicates in his IRPF declarations the NIF of the tenant and the cadastral reference number of the leased property .

  • That the monthly amount of the lease is not greater than 800 euros .

  • The base of the deduction will be reduced by the amount of the aid granted by the Public Administrations in the tax period in question, which covers all or part of the expenses that give rise to the deduction, provided that such aid is considered as exempt income for the purposes of Personal Income Tax .

Incompatibility

This deduction is incompatible with the application of the regional deduction "For expenses derived from the adaptation of a property for rental as a habitual residence", and both deductions cannot be applied to the same amounts .

Note: Once taxpayers entitled to the deduction have entered the information required for its calculation, it will be automatically transferred to the section "Additional information on the regional deduction for expenses on credit insurance premiums to cover unpaid rental income (landlord's deduction) in the Canary Islands" in Annex B.10 of the declaration.