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Practical manual for Income Tax 2024. Volume 2. Autonomous community deductions
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For the placing of homes on the rental market for habitual residences

Regulations: Art. 16 Consolidated Text of the current legal provisions issued by the Autonomous Community of the Canary Islands regarding transferred taxes, approved by Legislative Decree 1/2009, of April 21

Amount of deduction

  • 1,000 euros for each of the real estate properties located in the Canary Islands intended for the residential leases provided for in article 2 of Law 29/1994, of November 24, on urban leases.

  • Applicable limit : Each taxpayer will apply this deduction to maximum of five properties intended for residential rental, excluding and storage rooms. For the sole purpose of calculating this number of properties, each will count as one unit, regardless of the percentage of ownership.

    Properties are leased will be counted as "property intended for leasing" and not those that are expected to rented.

Temporal scope of application of the deduction

The deduction will be single for each property and applicable in the first tax period in which the property is rented.

The tax period in which the deduction can be applied will be the one corresponding to the date of the rental contract, regardless of whether the first rent due under the aforementioned contract is in the following period.

Requirements for applying the deduction

  • The deduction may be applied by taxpayers who are owners or usufructuaries of and real estate in respect of which, during the entire previous tax period the imputation of real estate income was appropriate in accordance with the terms of article 85 of the Personal Income Law .

    This deduction may also be applied by taxpayers who acquire real estate by any title, provided that in the previous tax period it was not leased and, within a maximum period of six months from the acquisition, they use it for the rental of housing as provided for in article 2 of Law 29/1994, of November 24, on urban leases.

  • The lease agreement must have effective duration of at least three .

    However, the right to the deduction will not be lost if the lease agreement has a duration of less than three years when the property becomes a rental expectation situation and is again the subject of a new residential lease agreement within the period of six months from the end of the previous agreement , provided that the sum of the duration periods of the lease agreements is at least three years .

  • The lease must not constitute an economic activity .

  • The tenant of the dwelling may not be the spouse or a relative , by blood or marriage, up to the third degree inclusive, of the taxpayer.

    Attention : It should be recalled that Article 41 of the Consolidated Text equates members of de facto couples with spouses with respect to regional deductions from Personal Income Tax .

Other conditions for the application of the deduction

The amount of the deduction will be prorated based on the percentage of ownership or usufruct of the property .

Loss of the right to deduction

Failure to comply with the requirements established to be entitled to apply the deduction will result in the taxpayer having to integrate into the Personal Income Tax , in the year of non-compliance, the amount that was deducted at the time, with late payment interest being settled in the terms provided for in Law 58/2003, of December 17, General Tax Law and its implementing regulations.

Important: 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 the Canary Islands for the rental of primary residences and for the Madrid regional deduction for the rental of vacant residences" in Annex B.11 of the declaration.