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Form 100. Personal Income Tax Declaration 2018

7.4.6.4. Home rental reduction

REDUCTION FOR HOUSING RENTAL (art. 23.2 Law)

In the case of leasing real estate for housing, the net return calculated in accordance with the provisions of the previous sections will be reduced by 60%.

LEASE AGREEMENTS PRIOR TO MAY 9, 1985 (DT 3 Law)

In the case of lease contracts entered into prior to May 9, 1985, which do not enjoy the right to review the rent by application of rule 7 of section 11 of the second transitional provision of Law 29/1994, of November 24, of Urban Leases, an amount equivalent to the depreciation of the property will be additionally included as a deductible expense, while this situation persists and as compensation.

AMORTIZATION EXPENSES OF REAL ESTATE CAPITAL INCOME (art. 14 Rgl.)

To determine the net return on real estate capital, the amounts allocated to the amortization of the property and the other assets transferred with it will be considered a deductible expense, provided that they correspond to its effective depreciation.

Amortizations will be considered to meet the effectiveness requirement:

  1. Regarding properties: when, in each year, they do not exceed the result of applying 3 percent to the largest of the following values: the acquisition cost paid or the cadastral value, without including the land in the calculation.

    When the value of the land is not known, it will be calculated by prorating the acquisition cost paid between the cadastral values of the land and the construction for each year.

  2. Regarding assets of a movable nature, capable of being used for a period of more than one year and transferred together with the property: when, in each year, they do not exceed the result of applying to the satisfied acquisition costs the amortization coefficients determined in accordance with the amortization table approved for the simplified direct estimation regime.

Real rights of use and enjoyment

In the event that the income comes from the ownership of real rights of use or enjoyment, the acquired acquisition cost may be amortized, up to the limit of the full income of each right.

Amortization, in this case, will be the result of the following rules:

  1. When the right or power has a specific duration, the amount resulting from dividing the acquired acquisition cost of the right by the number of years of its duration.

  2. When the right or faculty was for life, the result of applying the percentage of 3 percent to the acquisition cost satisfied.