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Practical Manual for Companies 2023.

Requirements

Regulation: Article 48.2 LIS

In order to apply this special regime, entities must meet the following requirements:

  1. The number of dwellings rented or offered for rent by the entity in each tax period must at all times be equal to or greater than eight. In this regard, it is recalled that according to the provisions of article 48.1 of the LIS, regarding the ownership of the homes, it is required that the homes have been built, promoted or acquired by the company, so that the homes that are available by virtue of any other legal title, such as usufruct, temporary exploitation right or lease, may not be included in the calculation of the number of homes rented or offered for rent by the entity.

  2. The dwellings must remain rented or offered for rent for at least three years, the term of which will be calculated:

    1. In the case of homes that are included in the entity's assets before the moment of opting for the regime, from the start date of the tax period in which the option for the regime is communicated, provided that on said date the home was rented. Otherwise, the provisions of letter b) below shall apply.

    2. If the homes have been acquired or promoted subsequently by the entity, from the date on which they were first rented by it.

    Failure comply with this requirement result in the loss of the bonus that would have been applicable to each home. In this case, the entity must pay, together with the Corporate Tax rate corresponding to the tax period in which the non-compliance occurred, the amount of the bonuses applied in all tax periods in which this special regime would have been applicable, without prejudice to any late payment interest, surcharges and penalties that may be applicable. However, it is considered that failure to comply with this requirement in a tax period does not prevent the entity from continuing to apply the special regime in subsequent tax periods, as long as the entity does not renounce it, if all the requirements provided for this are met.

  3. For each property acquired or promoted, real estate promotion and leasing activities must accounted for separately with the breakdown necessary to determine the income corresponding to each dwelling, premises or independent registered property into which said properties are divided.

  4. In the case of entities that carry out complementary activities to the main economic activity of leasing housing, at least 55 percent of the income for the tax period, excluding that derived from the transfer of the leased properties once the minimum maintenance period of three years referred to in point two above has elapsed, or alternatively, at least 55 percent of the value of the entity's assets must be capable of generating income that is entitled to the application of the bonus provided for in this special regime.